Gallup Oil Discovery
In the San Juan Basin’s Gallup oil play, WPX is more than 25 percent ahead of its 2014 drilling plan with 19 wells spud as of June 30 vs. a plan of 15.
WPX completed 13 gross (11 net) Gallup wells for the first half of the year, including 10 gross (9 net) wells during the second quarter.
During the second quarter, WPX drilled a Gallup well in 12 days – an improvement of approximately a full day vs. the company’s prior best in the basin.
For the first half of 2014, WPX reduced its average well cost in the Gallup by 26 percent from the company’s 2013 rate when it initiated oil development in the basin.
WPX now has nearly 50,000 net acres under lease for Gallup development after adding another 1,100 acres during the second quarter.
WPX’s cumulative Gallup volumes since the company’s discovery in spring 2013 have surpassed 875,000 barrels of oil equivalent on a net basis, including 700,000 barrels of oil production.
As a result of drilling efficiencies, lower well costs and higher production, WPX is adding 11 more wells to its 2014 Gallup drilling plan. WPX now expects to spud 40 Gallup wells this year vs. the original plan of 29 using the same rig count (2) in the basin.
WPX’s 30-day IP rates for its Gallup wells in 2014 have averaged 626 barrels of oil equivalent per day, up more than 30 percent vs. an IP rate of 474 Boe/d in 2013.