South Texas Eagle Ford

Our operational strategy is focused on acquiring and developing assets in the Eagle Ford Shale located in South. Being a committed and long-term operator in South Texas, the Company possesses a significant understanding of the reservoir characteristics, geology, landowners, and competitive landscape in the region. We leverage this in-depth knowledge to continue to assemble high quality drilling inventory while continuously enhancing our operations to maximize returns on capital invested.

We have built a balanced portfolio of properties with a significant base of current production and reserves coupled with low-risk development drilling opportunities and meaningful upside from newer areas. Our core acreage positions are blocky and contiguous in nature which allows for optimal and efficient horizontal well development. Additionally, our concentrated acreage blocks allow us to continue to lower per unit costs through drilling longer laterals, utilizing pad drilling, consolidating in-field infrastructure, and efficiently sourcing materials through our rigorous procurement strategies.

We have developed a significant inventory of future drilling locations, primarily in our gas position in the Eagle Ford. As of December 31, 2017, we had approximately 100,000 net acres in the Eagle Ford and roughly 667 horizontal drilling locations. Approximately 55% of our estimated proved reserves at December 31, 2017 were undeveloped.

We continue to take advantage of opportunities to expand our core positions through leasing and bolt-on acquisitions as evidenced by the approximate 36,500 acres we acquired during 2017 which represented a 59% increase over our acreage position at year end 2016.

We have a proven track record of increasing Eagle Ford production while consistently lowering drilling and completion costs and improving well economics and safety metrics.

Corporate Total Recordable Incident Rate


South Texas Lease Operating Costs ($/MCFE)


Drilling Cost Per Well


($000)

Completion Cost Per Stage


($ / stage)

Source: Company Data