EXPANDING IN THE DELAWARE BASIN
WPX is more than doubling its estimate for net resource potential in the Permian’s Delaware Basin from 1.1 billion barrels of oil equivalent to approximately 2.4 billion boe and raising the projected number of gross drillable locations from more than 3,600 to more than 5,500.
WPX’s original estimate was conducted during 2015 when it acquired Delaware properties from RKI Exploration and Production. The new assessment comes on the heels of increasing estimated ultimate recoveries (EURs) earlier this year, identifying additional benches (such as Wolfcamp X/Y), down-spacing opportunities in targeted intervals, and purchasing more acreage.
Subsequent to the close of second-quarter 2016, WPX acquired another 7,800 net acres in the Delaware basin from a privately held undisclosed seller.
The acreage is close to WPX’s acreage position in central Eddy County, New Mexico. It has multiple stacked horizontal targets, including the Wolfcamp and Bone Spring intervals. The bolt-on acquisition increases WPX’s position in the Permian Basin to over 100,000 net acres.
WPX plans to add a third rig in the Delaware Basin in October 2016 to support delineation of the Wolfcamp D and X/Y intervals. WPX’s development has primarily focused on the Wolfcamp A to date.
Additionally, WPX is proceeding to expand its owned and operated midstream infrastructure in the Delaware Basin with the addition of a crude oil gathering system. This will increase reliability, increase the optionality for market access and improve oil differentials.
Planning and engineering are under way, with groundbreaking scheduled to occur before year-end 2016. The first phase of the project is expected to be complete in mid-2017, with further build-out to follow. WPX is planning a total installation of approximately 50 miles of pipe.
“This is a transformative opportunity that fits perfectly with our strategy to increase our oil production and high-quality oil inventory,” said Rick Muncrief, WPX CEO. View Video
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