A key growth engine for the company, Occidental's Permian Resources business develops unconventional reservoirs using horizontal drilling techniques. With approximately 1.4 million unconventional net acres in the Permian Basin at the end of 2016, Permian Resources is focused on developing and growing inventories in the Wolfcamp and Bone Springs formations in the Delaware Basin, as well as the Spraberry and Wolfcamp formations in the Midland Basin. The company is also appraising and delineating several other resource plays for future development.
Permian Resources' program is designed to efficiently appraise and then develop Occidental's acreage with an eye toward maximizing both ultimate recovery and financial returns. This is being achieved through the following actions:
Enhancing our understanding of the rock through subsurface characterization workflows that result in specialized and unique development concepts
Maximizing the lateral length of each well drilled
Optimizing development strategy by employing subsurface characterization, technology and infrastructure investment to maximize the value of each field
Executing development plans that provide highly capital-efficient growth and
Focusing on full-cycle value by leveraging our proven operating capability in the Permian Basin to operate each field at full potential
Occidental is making significant investments in subsurface characterization in order to assess the rock and fluid properties in our unconventional reservoirs across our acreage. This helps to develop a better understanding of the key geologic parameters that drive productivity, such as porosity, saturation, brittleness, total organic content, mineral and geochemical composition, rock and fluid compatibility, natural fractures, distribution and stress regimes.
Permian Resources is applying this data in order to construct calibrated petrophysical models that characterize prospective benches and target landing zones within each bench. Occidental is also conducting appraisal and delineation of high potential benches to optimize our well designs and development strategy, and increase our inventory of low-breakeven projects. This includes collection and analysis of whole cores, cuttings, advanced log suites, micro-seismic surveys and 3-D seismic surveys.
We are also optimizing drilling, completions and field infrastructure designs for improvements in well productivity and field development costs. Through this effort, high potential benches move to full-field development where Occidental creates maximum value throughout our unconventional acreage. Permian Resources produced an average of 124,000 BOE per day in 2016, increasing 13 percent from 2015 and nearly doubling since 2012.