The Strength to Grow
As the nation’s 10th largest natural gas producer, we produce more than 1 billion cubic feet per day. With nearly 1.6 million net acres under lease, we have a significant inventory of drilling opportunities we can continue to grow without buying anything new.
We’re working to replicate our proven efficiency model throughout all WPX operations. 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: our two-acre pad sites can drill up to 22 wells. 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. And we recycle 100 percent of the water we use at our own water management facilities, leading to a reduction of 90,000 truckloads of water.
We’re using many of the same techniques we’ve refined in the Piceance in our other areas of operations. We’re installing new fit-for-purpose rigs in Pennsylvania, built specifically for their more narrow roadways. Just as we’ve done in the Piceance, we’ve already reduced completion costs by 46 percent. Our new record drilling time for a Marcellus well is 10.8 days.
In 2013, we plan to run four rigs in the Bakken, where we’re in the sweet spot of the play. We have approximately 84,000 net acres under lease on the Fort Berthold Indian Reservation. And although the ceramic proppant we use in North Dakota adds to our costs per well, we get that back, and more, in drilling efficiencies and production growth.
As a company, we have approximately 18 Tcfe of 3P (proved, probable and possible) reserves, so we have plenty of ability to grow. In fact, we’re poised for double-digit production growth when the time is right.
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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