Permian paleogeography Delaware and Midland Basins

Permian Basin Precambrian structure

Bone Spring depositional systems

Delaware Basin gas + oil windowsLea County, New Mexico

Delaware Basin Bone Spring + Wolfcamp stratigraphy

Bone Spring 2 type log with GT 8 percent porosity isopach shaded yellow

Bone Spring 2 GT 8 percent log porosity isopach Lea Co NM, 21-26S and 32-36E

Bone Spring log + cored reservoir interval

Bone Spring cored reservoir porosity vs permeability

Conclusions

• Paleogeography studies indicate highlands to the N (ancestral Rockies), W (Diablo platform), E (Central Basin Platform) and S (Marathons) served as potential source areas for the Delaware Basin Bone Spring and Wolfcamp.

• Bone Spring 2 higher initial rates and higher estimated ultimate recoveries correlate with thicker log porosity isopach areas above 8 percent porosity. Core data supports higher core permeability with higher log porosity.

• Detailed log correlation and mapping of Bone Spring 2 log porosity defines the production sweet spots for offset infill drilling.

• Bone Spring 2 porosity thick trends oriented from NE-SW indicate cross bedded channel sand deposition sourced from structural highlands to the N, E and W.

• Porosity logs in pilot holes or older wells that tested deeper structures are crucial for mapping the porosity thick trends within the Bone Spring 2 and maximizing the Bone Spring 2 play economics.