In December 2016, PDC Energy made a significant acquisition of assets in the Delaware Basin. As of year-end 2017, we had approximately 60,000 net acres in Reeves and Culberson Counties. Our 2018 drilling is focused primarily on drilling single Wolfcamp wells in the A or B benches to meet drilling obligations, as well as a downspacing test in the Eastern area that will evaluate the equivalent of 12-wells per section in the Wolfcamp A and a well that will test the Wolfcamp C.

Robust Inventory Potential in the Basin’s ~3,000′ Thick Gross Interval

The Delaware Basin has gross potential pay interval that is around 3,000 feet thick from the top of the Bone Spring and Avalon Shale to the base of the lower Wolfcamp. Our year-end 2017 analysis identified approximately 450 drilling locations with an average lateral length of ~7,500’ in our Eastern and North Central focus areas.  Some of these locations are subject to a higher degree of uncertainty as they reflect assumptions primarily related to future downspacing that we are either in the process of testing, or have yet to test.