Clayton Williams Energy, Inc. is a United States-based independent oil and gas company. The Company is engaged in the exploration for, and development and production of oil and natural gas in its primary areas in Texas and New Mexico. The Company operates through two segments: oil and gas exploration and production, and contract drilling services. The Company's areas of operations include Permian Basin and Giddings Area. The Permian Basin covers an area approximately 250 miles wide and 350 miles long, and contains commercial accumulations of oil and gas in multiple stratigraphic horizons. Its wells in Giddings Area are located in East Central Texas, with multiple laterals in different producing horizons, including the Austin Chalk, Buda and Georgetown formations. The Company holds interests in approximately 170,000 net acres in the Giddings Area. The Company owns interests in and operate oil, natural gas and water service facilities in the state of Texas.