3Q DELAWARE BASIN OPERATIONS UPDATE
Delaware production averaged 28.3 Mboe per day in the third quarter, up 9 percent vs. the preceding quarter from greater gas and NGL volumes due in part to delineation work in the Wolfcamp D horizon. WPX’s oil volumes in the basin increased 4 percent vs. the preceding quarter.
Since closing the RKI acquisition in August 2015, WPX has added roughly 12,300 net acres in the Permian Basin at an average cost of $7,900 per acre. Including the bolt-ons, WPX now has 102,000 net acres in the basin.
Subsequent to closing a recent bolt-on purchase, WPX proceeded to drill its first 1-mile Wolfcamp X/Y delineation well, the C-State 16-1H. WPX drilled the well in just 17.5 days, the company’s best drilling time to date in the basin. The well had a 24-hour IP of 1,812 Boe/d (70% oil) with a completed well cost of approximately $5.1 million, including facilities.
WPX has initiated delineation work in the Wolfcamp D interval, as well, by bringing its first two Wolfcamp D wells to first sales during the third quarter. The well results are consistent with offset operator wells to the west.
The East Pecos 22-14H well in the D interval had a 24-hour peak rate of 2,063 Boe/d (33% oil) at a flowing casing pressure of 3,800 PSI. The Lindsay 16-6H well in the D interval posted a 24-hour peak rate of 1,662 Boe/d (18% oil) at a flowing casing pressure of 4,400 PSI.
WPX is scheduled to spud its second long lateral in the Delaware Basin – a 2-mile lateral from the CBR 6-7 pad – in December. This is the first of four 2-mile laterals scheduled in CBR sections 6 and 7. In late December, WPX also is scheduled to spud a 1.5-mile lateral on the Lindsay 10-15 pad.
Drilling on a nine-well spacing test in the upper and lower Wolfcamp A is expected to conclude in January, with first sales expected in February and March. The project is designed to validate 16-well Wolfcamp A drilling spacing units.
Progress also is occurring on WPX’s midstream expansion. The company is ready to break ground on the first phase of its Permian crude oil gathering system this month, with an in-service date for the first 13 miles of pipe set for the first quarter of 2017.
“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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