Agreement value exceeds
The Trail Ridge development is part of WPX’s position in western
“We’re bringing value forward by accelerating the development of what
has been a quiet part of our Piceance holdings,” said
“This is a creative way to generate returns that are among the best in our portfolio,” Muncrief added.
WPX received approximately
The working interest sold represents 27 billion cubic feet of proved developed reserves and 46 billion cubic feet of proved undeveloped reserves.
TRDC also has committed to a
WPX will pay 28 percent of the Trail Ridge development and receive 51
percent of the production and reserves until TRDC has completed its
Currently, the parties plan to jointly develop eight wells in 2014; 25 wells in 2015, 50 wells in 2016 and 100 wells per year in 2017 and beyond. WPX has approximately 1,300 remaining Trail Ridge drilling locations.
The joint development agreement is for the Williams Fork and Iles formations and does not include deeper opportunities in the Mancos and Niobrara shales.
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.