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Concho continues plan to double production within three years in Permian Basin

Zack Ponce | Carlsbad Current-Argus

CARLSBAD — Concho’s plans to double its development in the Permian Basin has already shown results for the company.

And some job-seekers may be seeing the results soon, too.

Concho’s “two-by-three growth plan” was implemented this year to double the oil company’s production in the Permian Basin within three years.

“For Concho, the goal is to double development within three years and to do that, we’re going to need the workforce,” said Dean Chumbley, an adviser for Concho. “We’re looking for lease operators, geologists, engineers. They’re not all local-based, some of them are at the company headquarters in Midland, but it’s going to take a lot of people to get there, and that’s what we’re looking at.”

Concho is hiring for many positions based in its Artesia office, including lease operators, artificial lift technicians, electricians, gaugers, production foreman and work-over foreman.

The growth plan, announced last November, is another step in the company’s strategy to shift resources into the oilfields of Southeastern New Mexico and West Texas. It has already led the company’s oil and natural gas sales to spike to $704.7 million in 2014’s second quarter. Sales increased 25 percent over the same time last year, when Concho reported earning a total of $562.8 million.

Related: Concho continues to revamp downtown Midland

“The advantage of running one of the Permian Basin’s largest horizontal operations is translating into operational efficiencies and improved returns,” Tim Leach, Concho’s chairman, chief executive officer and president, said in a recent news release. “We are focusing on optimizing our well design and stimulation techniques. Efficiencies of scale and drilling and completion optimization are driving greater capital productivity, as well as industry-leading well performance across the Permian Basin.”

Since the beginning of the year, Concho has added 70 new wells, which have averaged 931 barrels of oil per day in the northern Delaware Basin, a drilling zone in the Permian Basin that spans Eddy and Lea Counties.

The company also announced that it has entered into agreements to acquire approximately 13,000 net acres of land in the northern Delaware Basin for $95 million in its second quarter financial earnings.

Concho began bulking up its properties in Southeastern New Mexico in 2010 when it acquired Marbob Energy Corporation and its affiliates for $1.4 billion.

Concho continued a strategy of expansion in the region in 2011 that was marked by the shifting of assets from the Bakken oilfield in North Dakota to the Permian Basin.

Reporter Zack Ponce can be reached at 575-689-7402.