Chevron Announces Deal with Cimarex, Covers 104K Acres in Delaware Basin
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), announced that it reached a joint development agreement with Cimarex Energy Co. (NYSE: XEC) for Delaware Basin acreage in Culberson County, Texas, that also provides Chevron access to infrastructure including a gathering system, roads and utilities.
The eight-year agreement covers 104,000 acres to be operated by Cimarex. In addition to the acreage it contributes to the development area, Chevron will receive a 50-percent interest in Cimarex's Triple Crown gathering system and a 50-percent interest in wells drilled during 2013.
“This transaction builds on Chevron's premier position in the Delaware Basin and is another step in the execution of our Permian growth strategy,” said Alan Kleier, vice president of Chevron's Mid-Continent business unit. “Our complementary acreage positions in West Texas and New Mexico, along with our common development outlook, make Chevron and Cimarex natural partners, and the large contiguous lease position will enable the optimum development of these resources.”
Chevron's position in the Delaware Basin exceeds 1 million gross acres. The Delaware Basin contains several stacked oil and wet gas plays.
Headquartered in Houston, Chevron's Mid-Continent business unit manages a large resource base of oil and liquids-rich gas opportunities and assets in seven states, and is also involved in numerous non-operated joint ventures in the U.S.
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