Matador's First Woodford Test in Lea County Tops 2,200 boe/d
Permian Basin Oil & Gas Magazine reports that Matador Resources has confirmed successful test results from its first exploratory well targeting the Woodford formation in southeast Lea County, New Mexico. The Rae’s Creek well posted initial production above 2,200 boe/d (72% oil) during a 24-hour test on June 29, and the company said it’s still running about 20% ahead of the average 60-day cumulative oil output for Woodford wells in Texas.
Matador called the results validation of the formation’s “commercial viability” in this part of the Delaware Basin. Chairman and CEO Joseph Wm. Foran said the company’s drilling and completions teams expect to integrate efficiencies across the development area to cut well costs by 30% to 40% over the next 12 to 18 months.
What It Means for Subcontractors
- A confirmed Woodford play in southeast Lea County signals potential new well pads and pipeline tie-ins in the area, opening drilling-support work for civil, E&I, and midstream construction crews over the next 12 to 18 months as Matador scales activity.
- Matador’s stated goal of cutting well costs 30% to 40% within 12 to 18 months means service and completions subcontractors should expect pricing pressure and efficiency demands on future bid packages tied to this development.
- Companies with equipment or crews already working Matador’s Delaware Basin footprint should track follow-up well announcements in Lea County, since a single successful test typically precedes a multi-well delineation program before full-scale development contracts are issued.
