energen cc transcript

And really like our Wolfberry play in the Midland Basin, and as we said, we will be open to other opportunities there, and are pleased to be adding to our assets. We signed a purchase and sale agreement to buy two Wolfberry packages from private sellers for a total of 212 million plus standard closing adjustments. The properties are in Martin, Howard and Glasscock Counties. Associated 3P reserves total 25.4 million barrel of oil equivalent. The two packages include 31 producing wells at an estimated 194 undeveloped drill locations. We expect the acquisitions to close by the end of the year. They will not have a material impact on 2011 production.

During the first nine months of 2011, we drilled 123 net Wolfberry wells and 84 wells are producing and 39 are waiting on completion. We plan to drill another 40 net wells by year-end, bringing our 2011 total to 163 net wells. 30 Wolfberry wells were brought online during the third quarter at IP rates averaging 63 barrels of oil a day and 170 Mcf per day of wet gas. Our risk IP rate is 55 barrels of oil per day and 110 Mcf per day of wet gas.

Including the new acquisitions, we now have some 32,000 net undeveloped acres in the Wolfberry play giving us 800 potential drilling locations based on 40-acre spacing. Our estimated cost to drill and complete a Wolfberry well is 2.2 million.


http://seekingalpha.com/article/302902-energen-corporation-ceo-discusses-q3-2011-results-earnings-call-transcript?source=yahoo