Swaps mature coalbed methane for San Juan oil
The transactions, which are subject to normal closing conditions, will enable WPX to divest its mature coalbed methane holdings and bolster high-growth San Juan oil acreage by more than 50 percent.
“We’re moving quickly to build scale and create additional shareholder
POWDER RIVER BASIN DIVESTITURE
WPX has agreed to sell its remaining mature, coalbed methane holdings in
Mid-year reserves in the basin are 222 Bcfe and second-quarter production was 154 MMcf per day, which includes operated and non-operated working interests in approximately 5,000 wells. WPX has not actively drilled in the basin since 2011.
In 2013, production in the basin represented approximately 14 percent of the company’s total production, but generated only 5 percent of WPX’s adjusted EBITDAX results, excluding the impact of unutilized transportation.
The transaction should improve WPX’s consolidated operating cost structure for lease operating, gathering and transport expenses.
26,000 MORE ACRES IN THE GALLUP OIL PLAY
WPX has executed multiple transactions and now controls 26,000 additional acres in the heart of the San Juan Basin’s Gallup oil window, an acreage increase of more than 50 percent since May.
The transactions include approximately 800 barrels of oil equivalent per day. WPX now has 74,600 net acres exposed to San Juan Gallup oil. The majority of the acreage is held-by-production.
WPX now has an estimated 425 gross drillable locations for oil in the area assuming 160-acre spacing. WPX will add a third rig and possibly a fourth in 2015 to accelerate development.
As previously disclosed,
Mr. Muncrief’s presentation is scheduled to begin at approximately
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. Statements regarding future drilling
and production are subject to all of the risks and uncertainties
normally incident to the exploration for and development and production
of oil and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by
The SEC’s rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.
WPX Energy, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360