Onshore
Permian Basin
Mariner Energy is one of the most active drillers in the Permian Basin. Operating activities are based primarily in the prolific Spraberry trend at depths between 6,000 and 10,000 feet. Our growing Permian Basin operation, which is characterized by long reserve life, stable drilling and production performance, and relatively lower capital requirements, provides a counterbalance to the higher geological risk, operational challenges and capital requirements attendant to most of our deepwater Gulf of Mexico operations.
We are aggressively expanding our presence in the region, targeting a combination of infill drilling activities in established producing trends, including the Spraberry, Dean, Wolfcamp and Devonian/Fusselman, as well as exploration activities in emerging plays such as the Wolfberry and newer Wolfcamp trends.
As of December 31, 2009, Mariner’s net acreage in the Permian Basin was nearly 150,000 acres. Permian Basin properties comprise 47% or 515 Bcfe, of our proved reserves as of December 31, 2009. In 2009, net production from them was approximately 18.3 Bcfe.
Gulf Coast
Mariner significantly bolstered its onshore operations with the acquisition of the reorganized subsidiaries and operations of Edge Petroleum Corporation on December 31, 2009, creating a new core business unit on the Gulf Coast. The acquired assets are predominantly in the Vicksburg, Queen City and Deep Frio producing trends in South Texas. As is the case with our Permian Basin operation, we expect the relatively lower risk and cost of exploiting our Gulf Coast properties to further counterbalance those of our Gulf of Mexico deepwater operations.
As of December 31, 2009 Mariner’s net acreage in the Gulf Coast region was nearly 50,000 acres. Gulf Coast properties comprise 8% or 81.6 Bcfe, of our proved reserves as of December 31, 2009.
Unconventional Resources
Mariner has begun investing in selected shale and unconventional resource opportunities in the United States and Canada, such as greenfield leasing, joint ventures and acquisitions. In 2009, we added a team of geoscientists experienced in unconventional resource plays in those areas. We also formed a Canadian subsidiary which opened an office in Calgary. We are targeting liquids-rich plays with relatively low entry costs in the Rocky Mountains, South Texas and the Permian Basin, including unconventional potential of our existing asset base. During 2009, we acquired working interests in approximately 80,000 (43,000 net) acres in unconventional plays in North Dakota, Wyoming, Arkansas and New Mexico.
