Felix Energy is a private independent oil and natural gas company engaged in the acquisition, development, and exploration of oil and natural gas properties with a primary focus currently in the Delaware Basin portion of the Permian Basin in West Texas.
Our success is built on a consistent strategy of pursuing high-quality assets, executing large, safe and efficient drilling programs and maintaining a strong financial position. Our legacy operations in the Anadarko Basin and the team’s broader professional experience in most of the leading domestic U.S. basins provides us a deep understanding of operating and geological trends, and through the application of new technology, we are able to enhance the production of our wells and more effectively identify future opportunities.
In the Delaware Basin, the Bone Spring and Wolfcamp formations are several thousand feet thick and contain stacked layers of shales, sandstones, limestones and dolomites. These intervals represent a complex and dynamic submarine depositional system that also includes organic rich shales proven to be the source rocks for oil and natural gas produced in the basin. Historically, production has come from the “conventional” reservoirs; however, the industry has now realized that the source rocks also have sufficient porosity and permeability to be commercial reservoirs. In addition, the source rocks are interbedded with reservoir layers that have filled with hydrocarbons, both of which can produce significant volumes of oil and natural gas when connected by horizontal wellbores with multi-interval hydraulic fracture treatments.
Particularly in the Delaware Basin, there are multiple horizontal targets in a given area that exist within the several thousand feet of hydrocarbon-bearing layers that make up the Bone Spring and Wolfcamp plays. Multiple horizontal drilling and completion targets are being identified and targeted by companies, including us, throughout the vertical section that includes the Delaware, Avalon, Bone Spring (First, Second and Third Sand) and several intervals within the Wolfcamp shale, often identified as Wolfcamp “A” through “D”. Horizontal drilling is a key driver of the recent growth and development in the Delaware Basin.
Felix has a premier acreage position in the Delaware Basin with an advantageous combination of depth, thermal maturity, thickness and overpressured. Located in Ward, Winkler, and Loving counties in Texas, our southern Delaware Basin assets are situated in an area of the basin where there is significant oil in place. Our acreage position is largely contiguous, which sets up well for longer lateral development. During 2015, we drilled some of the most prolific long lateral wells in the Lower 48 in our legacy Anadarko Basin position, and we are excited about the potential to leverage our success from the Anadarko Basin to improve well performance in Delaware Basin.
There is significant offset activity targeting both the Bone Spring and Wolfcamp formations that further validates the resource potential of the area. We believe there is additional upside from ongoing delineation of several target intervals and further optimization of well performance. We continue to capture, define and derisk our resource and believe there is further upside potential from reducing the spacing between wells and optimizing completion designs. We are poised for significant growth in the Delaware Basin and well positioned to deliver value to our stakeholders, employees and communities.