Cimarex Energy Co., Denver, expects a 5-7% reduction in production volumes for this year’s first quarter due to downtime associated with Winter Storm Uri in the Permian and Mid-Continent regions.
Oil production in first-quarter 2021 is expected to average 65,000-69,000 b/d. First quarter total production is expected to average 205,000-225,000 boe/d.
Of the $500-600 million drilling and completion budget for 2021, over 90% will be invested in the Permian region with the remainder in the Mid-Continent. Permian activities will continue to focus on long lateral Wolfcamp and Bone Spring wells in Culberson and Reeves counties in Texas, and in Lea and Eddy counties in New Mexico. In the region, 67 net wells are expected to begin producing by yearend. Six are expected by yearend in the Mid-Continent for a total 73 net wells expected to begin producing during the period.
Total capital investment in 2021 (including midstream capital) is projected at $650-750 million.
For the year, oil production is projected to average 75,000-81,000 b/d of oil, up 2% at the midpoint from 2020 levels. Total equivalent production is expected to average 235,000-255,000 boe/d.
