A FOUNDATION FOR 2014 AND BEYOND
As one of the nation’s largest natural gas producers, we produce more than 1 billion cubic feet per day. With nearly 1.6 million net acres under lease, we have a strong portfolio with attractive projects.
We’re building our portfolio through grassroots exploration. In 2013, we have announced two significant discoveries – finding natural gas in the Niobrara Shale and oil in the San Juan Basin’s Gallup Sandstone. Our Niobrara discovery well has already produced 2 billion cubic feet of natural gas in its first 10 months. Our first nine wells in the Gallup Sandstone have flowed an average IP rate of 728 barrels of oil equivalent per day.
We’re also replicating our proven efficiency model throughout WPX. That model has made us the lowest-cost producer in the Piceance and the largest producer in Colorado, operating more than 4,100 wells. Through efficiencies, we’ve cut drilling time by more than half, to an average of 8 days on our Valley wells. We’ve introduced offshore technology onshore with some of the newest fit-for-purpose rigs and concepts such as multi-pad drilling.
Moreover, simultaneous operations (SIMOPS) allow us to complete and produce on the same pad at the same time, resulting in significant efficiencies and getting volumes online faster. We’ve also introduced clustered plans of development (CPODS), with remote hydraulic fracturing pads.
We’re using many of the same techniques we’ve refined in the Piceance in our other areas of operations, such as North Dakota’s Bakken Shale. During the third quarter, we began to test a new completion design in the Bakken based on the results of an infill density project. The design includes additional stages and slower pump rates to further stimulate the reservoir along the horizontal lateral.
Our efficiencies are making it possible for us to do more drilling and completions this year in the Bakken without increasing our rig count and within our capital guidance range. Through the first three quarters this year, we’ve completed 34 gross (25 net) wells in the Bakken.
For the first nine months of 2013, WPX overall domestic operations participated in 320 gross (249 net) oil and gas wells, including 99 gross (71 net) in the third quarter.
Subsequent to the close of the third quarter, WPX continued to optimize its portfolio by completing a $40.1 million sale of the deep rights on approximately 140,000 net acres in Wyoming’s Powder River Basin.
We’re working to replicate our proven efficiency model across WPX. We recently drilled a Piceance Valley well in just 3.7 days.
Our transfer agent is Computershare Trust Company, N.A. Please contact them at:
250 Royall Street
Canton, MA 02021-1011
800.884.4225 or 781.575.2879
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