When planning up to 84 wells in a square mile in the Delaware Basin, the task is further challenged by this additional goal: Leave no reserves behind. This is Devon Energy Corp.’s (NYSE: DVN) mantra in developing its stacked potential in southeastern New Mexico, according to Rick Gideon, senior vice president of U.S. operations.
“Let’s go to the center part of Lea and Eddy counties—the best part of our basin,” Gideon told attendees of Hart Energy’s recently held DUG Permian Basin conference. There, it has 10 to 12 landing zones on average and can put in an average of seven wells per 640-acre section in each landing zone.
“All of a sudden, there is a potential to have 70 to 84 wells per section. … How do I not strand reserves?” And while increasing rate of return and bringing PV (present value) forward?