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WPX Energy Increasing Activity and EURs in the Williston Basin

6/25/2015

Lower Well Costs and 25% Increase in EURs Drives Decision to Resume Completions and Add Two Rigs

TULSA, Okla.--(BUSINESS WIRE)-- WPX Energy (NYSE: WPX) plans to increase its activity in the Williston Basin during the second half of 2015 by resuming completions and increasing its rig count from one to three before year-end.

The decision follows significant process improvements, structural changes to lower costs, successful discussions with key vendors, a technical analysis of WPX’s well performance that led to higher estimated ultimate recoveries (EURs) and favorable results from larger stimulations.

WPX has rapidly driven costs out of its Williston operations. The company’s estimated drilling and completion costs in the basin are approaching $8 million per well with 6 million pound completions, representing a decrease of more than 30 percent vs. its average in 2014.

The company is now recognizing a blended type curve of approximately 750 Mboe for its wells in the Middle Bakken and Three Forks formations, up 25 percent per well from previous estimates of 600 Mboe. This is based on historical well performance and the success of incremental completion changes WPX performed in late 2014.

“The combination of cost reductions and higher EURs gives us the opportunity to generate returns in excess of 30 percent in today’s commodity price environment,” says Rick Muncrief, president and chief executive officer.

“This helps set us up for 20 percent oil volume growth in 2016. We’re realizing the value we have on this acreage to a fuller extent through technical excellence, improving the way we develop the asset, and looking at the operations through a new lens,” Muncrief added.

WPX has more than 85,000 net acres in the core of the Williston Basin and reported proved reserves of 119 million barrels of oil equivalent for its Williston operations at year-end 2014.

NEXT STEPS

The company currently has an inventory of 14 Williston wells awaiting completion. This work is scheduled to resume in August, starting with a four-well pad.

WPX is scheduled to test 10-million-pound stimulations with more stages, more entry points and a higher pump rate in the second half of 2015 using 100 percent sand on its Williston wells. The company previously used a combination of sand and ceramic proppant.

WPX’s completion modifications include moving toward a higher intensity slick-water design targeting the potential to increase initial production rates and EURs even further.

“Increasing the stimulation size is about pursuing additional upside for our EURs. The collaboration we’re seeing from service providers makes this the perfect time to proceed,” Muncrief added.

The company estimates $9 million drilling and completion costs per well to perform the larger 10-million-pound stimulations.

WPX currently has one rig deployed on its Williston acreage. The company plans to go with a second rig in August and a third in November.

STAYING WITHIN CASH FLOW

Funding for additional Williston activity primarily is derived by redeploying cost savings the company is incurring and reallocating capital from its Piceance Basin operations to its Williston development.

WPX plans to move to a one-rig program in the Piceance during the second half of the year and evaluate the extent of Piceance-related completions based on commodity prices.

Total planned capital investments for full-year 2015 remain in line with the company’s previous guidance of staying within its projected operating cash flow.

Additional information about WPX’s EURs in the Williston Basin is available in a short presentation in the investor section at www.wpxenergy.com.

About WPX Energy, Inc.

WPX Energy develops and operates oil and gas producing properties in North Dakota, New Mexico and Colorado. The company has a long history of innovation and stakeholder engagement, recognized through more than 40 local, state, federal and industry awards.

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 WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.

Additionally, the SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. From time to time, we elect to use “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.” The SEC defines“possible” reserves as “those additional reserves that are less certain to be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC‘s reserves reporting guidelines. Investors are urged to consider closely the disclosure in our SEC filings that may be accessed through the SEC’s website at www.sec.gov.

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.

Source: WPX Energy Inc

WPX Energy, Inc.

Kelly Swan, 539-573-4944



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