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Gallup/Niobrara Updates


Best Discovery

(June 10, 2014) WPX Energy received the Best Discovery Award for our Niobrara discovery well in Oil and Gas Investor magazine’s 11th annual Excellence Awards. This is the same organization that presented WPX’s San Juan Basin team with the Best Field Rejuvenation award in 2006. Members of WPX’s Piceance Basin staff accepted the Best Discovery award in Houston. You can learn more about our Niobrara exploratory work here.

Gallup Oil Update

(May 5, 2015) During first-quarter 2015, WPX completed 15 new oil wells in the San Juan Gallup oil play. Previously, WPX completed 47 Gallup wells in 2014 and 13 in 2013.

WPX has taken steps to lower the basis differential on its San Juan Basin Gallup oil sales from roughly $13 per barrel during 2014 to approximately $8 to $10 per barrel. WPX will start to realize a portion of this benefit in second-quarter 2015, with the full impact realized in the second half of 2015 and beyond.

WPX also continues to build out a new oil, gas and water gathering system for its Gallup development activity. Last year WPX installed 95 miles of pipeline.

WPX installed another 37 miles of pipe during the first quarter, with plans to construct another 55 miles during the balance of the year. This ultimately furthers margin expansion efforts in the basin.

Our 2015 capital program includes $295 million to $320 million for the San Juan Basin, primarily for further development of our Gallup oil discovery. During 2014, we nearly doubled our Gallup acreage to approximately 85,000 net acres.

Niobrara Shale Update

(May 5, 2015) In the Piceance Basin, WPX completed its first two-well horizontal Niobrara pad during the first quarter. Both wells produced an initial high of more than 10 million cubic feet per day at a flowing pressure of 7,500 pounds per square inch.

The company has two more Niobrara wells scheduled for completion in May 2015 that were drilled in the first quarter.

 For more information on our Niobrara activity, please visit our exploratory history.

WPX’s Niobrara discovery well produced more than 2.5 billion cubic feet of natural gas in its first 17 months. 



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