L48 is the largest operator in the Colorado side of the San Juan Basin, where the company’s business interests in 1,300 wells span more net acres than a city twice the size of Denver. About 30 percent of L48's production comes from the San Juan Basin, which contains one of the best CBM reservoirs in the world. The company’s operations in the basin are based out of Durango, Colorado, and Farmington, New Mexico.
On the southern side of the basin in New Mexico, L48 recently announced the expansion of its business through an acquisition of Devon’s operated interest in the Northeast Blanco Unit (NEBU), a section of federal lands. The company anticipates taking over operations of the NEBU’s 480 wells spread across 33,000 gross acres in the first quarter of 2016, after receiving required government agency approvals. Once that transition is complete, L48 will operate about 2,600 wells in New Mexico.
With 600,000 net acres in Oklahoma, which covers more ground than the state’s two most populous cities, L48 is growing its presence and operational footprint in the region. This expansion has included adding rigs and opening an Oklahoma City office in 2015. The company remains a leading producer of tight gas in the Arkoma, Woodford and Anadarko basins. L48 operates 1,300 wells in eastern and central Oklahoma (Arkoma and Woodford basins) plus about 200 wells in western Oklahoma (Anadarko Basin).
In Texas, L48 has three distinct production areas. It operates about 800 wells in the East Texas Basin, with an operations center in Hallsville. The basin produces from conventional oil and gas reservoirs, shale, and tight gas, which is found in extremely dense rock formations. In the Texas Panhandle, L48 operates 1,200 oil and gas wells, where it is expanding activity. L48 owns a 41-percent interest in a joint venture operating in the South Texas Eagle Ford Shale, where there is a resource potential of 1.7 billion barrels of oil equivalent. Partnering with Lewis Energy, which is the joint venture operator, L48 provides subsurface expertise and has an interest in about 1,500 wells.
L48’s Wyoming operations are anchored in the south-central part of the state in the Wamsutter field, one of America’s premier reservoirs of tight gas. The company is the field’s largest operator, with about 2,000 wells. BP’s Wamsutter field was the site of the first large-scale onshore trial of advanced seismic technology nearly a decade ago.