Kimmeridge has made investments in the Delaware Basin of the Permian Basin through its portfolio companies, Arris Petroleum and 299 Resources. The Permian Basin has produced over 29 billion barrels of oil and 75 trillion cubic feet of gas, but until recently was not exploited horizontally. There is a resurgence in the Basin with this technology being applied, and oil production has surged to over 1 million barrels per day as a result.
Currently Kimmeridge holds interests in approximately 57,000 net acres and is in the midst of a horizontal well program across two counties with 7,000 boepd of combined production. While early in the Basin’s development, Kimmeridge believes the Delaware offers the advantage of multiple oil pays over a thick vertical column, in an area in which both regulators and land owners are accepting of the oil and gas business and desire activity. Since establishing Kimmeridge’s position in Reeves and Culberson Counties, TX, the Delaware Basin has become widely recognized as one of the most prospective and economic new unconventional plays in North America.