Permian
SM Energy has had a presence in the Permian Basin since the mid-1990s, but we became far more involved in the basin with our acquisition of Wolfberry tight oil assets in late 2006. The acquisition provided the necessary critical mass to open a regional office in Midland, Texas. SM Energy's two major Wolfberry assets are the operated Sweetie Peck Field and the outside-operated program at Halff East. In addition to these assets, SM Energy operates two large Delaware waterfloods in Southeast New Mexico. These two waterfloods provide a solid, low-decline production base. With new acreage and planned downspacing of the existing Wolfberry assets, the region has a multi-year drilling inventory. We continue to focus on identifying and developing new oil and gas resource plays in the Permian Basin and Southeast New Mexico.