Focusing on the Core: Areas, Competency and Strengths
Camber Energy continues to exploit the development and production of oil, natural gas liquids and natural gas from its existing and potential asset base. We are following a strategic path of acquiring properties in areas with geology and returns where we can leverage our technical competence, knowledge, and database.
Our leasehold position is concentrated in South and West Texas and Central Oklahoma. In Texas, we are positioned in the Austin Chalk resource play and the Eagle Ford shale in the Karnes, Gonzales and Wilson counties in addition to the Permian Basin where we have and are actively acquiring leaseholds. In Oklahoma, we are focused on the Hunton formation.
Minimized Geological Risks and Low Entry Costs
Our active development is concentrated in plays with low geological risk, putting us in an enviable position when combined with excellent well control, statistically predictable results, low cost of entry and long-lived reserves.
Our well-positioned Oklahoma play represents robust potential from our liquids-rich, low-decline reserves. The Hunton formation is a limestone play characterized largely by high-quality natural gas and liquids production. Camber controls approximately 10,000 net acres across Lincoln, Logan and Payne counties, and the majority of our undeveloped acreage is held by production (HBP).
In addition to the drilling locations that we have identified in the Hunton, we are reviewing other potential producing horizons and have the opportunity to expand our leasehold in additional prospective formations to the east.
We currently hold more than 7,300 net acres in Gonzales, Karnes and Wilson counties in the Austin Chalk play including some Eagle Ford developments. These well-known producing regions afford us a favorable acreage position in the oil window of the Eagle Ford trend. The Austin Chalk is a dense limestone, varying in thickness along the trend from approximately 200 feet to more than 800 fee and produces from localized fractures within the formation. The Eagle Ford shale, which is one of the most active areas in the United States, lies below the Austin Chalk and is an organic shale approximately 80 feet to 120 feet thick in the area of our leases and contains interbedded porous limestone intervals. We operate all of our Austin Chalk properties. Our Eagle Ford production is from non-operated 15% working interests in two wells.
Through the acreage acquired with the Segundo Resources transaction in August 2016 and the San Andres transaction in January 2017, we now hold over 4,130 net acres in the Permian Basin. This includes a minority working interest in over 500 net acres in Glasscock County, Texas, where there are 21 active wellbores, and a 90% working interest in 3,630 net acres in the Central Basin Platform of the Permian Basin, targeting the horizontal San Andres drilling opportunity. Drilling is expected to commence in the second half of 2017, following the acquisition of additional acreage.