Chevron, Cimarex to Jointly Develop Permian Resources
Denver-based Cimarex Energy Co. and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, have teamed up to jointly develop Cimarex’s combined Permian Basin acreage in Culberson County, Texas. Cimarex will serve as operator of the basin that spans 104,000 acres.
"Collaborative development of this 'checkerboard' acreage ownership makes perfect sense,” said Cimarex’s Chief Executive Officer Tom Jorden in a release. “Optimal well placement for both Second Bone Spring wells and longer-lateral Wolfcamp shale tests can now be achieved. We look forward to having Chevron as a partner on what will surely be a legacy asset for Cimarex."
Chevron is allocated to pay Cimarex $60 million in order to secure a 50 percent stake in the Cimarex-built Triple Crown gas gathering and processing system, as well as drilled wells on the acreage in 2013.
"Our complementary acreage positions in west Texas and New Mexico, along with our common development outlook, make Chevron and Cimarex natural partners," said Alan Kleier, vice president of Chevron`s Mid-Continent division, in a release.
The eight-year agreement also gives Chevron access to roads and utilities for development of the acreage, Reuters reported.
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