Concho Reports 42% Increase in 2010 Production

Concho reported estimated full year 2010 production and year end proved reserves. Production and reserves highlights for the year ended December 31, 2010 include:

  • Production of 15.6 million barrels of oil equivalents (MMBoe), a 42% increase over 2009
  • Year end proved reserves of 323.5 MMBoe, a 53% increase over year end 2009
  • Reserve replacement ratio1 of 858%

2010 Year End Estimated Proved Reserves, Production and Costs Incurred

Concho's total proved oil and natural gas reserves at December 31, 2010 were 323.5 MMBoe, a 53% increase over year end 2009 proved reserves, and consisted of 211.4 million barrels (MMBbls) of oil and 672.2 billion cubic feet (Bcf) of natural gas utilizing an average 2010 WTI posted oil price of $75.96 per barrel and an average 2010 Henry Hub spot market natural gas price of $4.38 per MMBtu. At December 31, 2010, 57% of the Company's proved reserves were proved developed compared to 49% at year end 2009.

Production for 2010 totaled 15.6 MMBoe (10.3 MMBbls of oil and 31.4 Bcf of natural gas), an increase of 42% as compared to 10.9 MMBoe (7.4 MMBbls of oil and 21.6 Bcf of natural gas) produced in 2009. Production in 2010 increased 32% over 2009 production, excluding the properties acquired from Marbob Energy Corporation and the acquisition of certain properties in connection with the Marbob preferential purchase right dispute in 2010.

In addition, PV-10 at December 31, 2010 was $6.1 billion.

During 2010, the Company commenced the drilling of or participated in a total of 662 gross wells (565 operated), of which 492 had been completed as producers, one of which was unsuccessful and 169 of which were in progress at December 31, 2010.

At December 31, 2010, proved reserves attributable to the Company's New Mexico Shelf assets totaled approximately 192.9 MMBoe, compared to the December 31, 2009 total of approximately 126.1 MMBoe. At December 31, 2010, on its New Mexico Shelf assets, the Company had identified 2,897 drilling locations, with proved undeveloped reserves attributable to 742 of such locations. Of these 2,897 drilling locations, 2,156 target the Yeso formation. For the year ended December 31, 2010, the Company drilled 270 wells (248 operated) on its New Mexico Shelf assets, with a 100% success rate on the 221 wells that were completed during 2010.

At December 31, 2010, proved reserves attributable to the Company's Delaware Basin assets totaled approximately 22.1 MMBoe, compared to the December 31, 2009 total of approximately 5.5 MMBoe. At December 31, 2010, on its Delaware Basin assets, the Company had identified 1,101 drilling locations, with proved undeveloped reserves attributable to 83 of such locations. Of these drilling locations, 968 target the Avalon Shale or the Bone Spring formation. For the year ended December 31, 2010, the Company drilled 25 wells (16 operated) on its Delaware Basin assets, with a 100% success rate on the eight wells that were completed during 2010.

At December 31, 2010, proved reserves attributable to the Company's Texas Permian assets totaled approximately 100.5 MMBoe, compared to the December 31, 2009 total of approximately 77.2 MMBoe. At December 31, 2010, on its Texas Permian assets, the Company had identified 1,800 drilling locations, with proved undeveloped reserves attributable to 1,094 of such locations. Of these 1,800 drilling locations, 1,742 target the Wolfberry play. For the year ended December 31, 2010, the Company drilled 313 wells (301 operated) on its Texas Permian assets, with a 99.6% success rate on the 223 wells that were completed during 2010.

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