The Permian Basin is one of the largest and most prolific oil and natural gas basins in the U.S.
During the second half of 2014, the Company completed divestitures of the majority of its Midland Basin properties, and in August 2015, the Company completed an additional divestiture in this region. The Company’s properties are located in west Texas and southeast New Mexico and primarily produce at depths ranging from 2,000 feet to 12,000 feet, and are primarily mature, low-decline oil and natural gas wells including several waterflood properties located across the basin.
Permian Basin proved reserves represented approximately 4% of total proved reserves at December 31, 2016, all of which were classified as proved developed. This region produced approximately 56 MMcfe/d or 7% of the Company’s 2016 average daily production. During 2016, the Company invested approximately $1 million to develop the properties in this region.