FIRST-QUARTER 2016 UPDATE
WPX produces oil in the southern end of the San Juan Basin from the Gallup Sandstone and has a legacy natural gas position in the northern end of the basin, including considerable dry Mancos upside at higher commodity prices. WPX has one rig deployed in the basin.
San Juan Basin production averaged 33.1 Mboe per day in the first quarter, which is 10 percent higher than a year ago.
Higher natural gas volumes drove the increase. WPX’s LOE for all of its operations in the basin averaged $4.04 per barrel in the first quarter, down 22 percent vs. $5.16 per barrel a year ago.
WPX drilled seven wells (gross) in the Gallup oil play in the first quarter. Drilling on a six-well pad in the West Lybrook unit commenced in February. Completions on the pad are scheduled to begin in May.
WPX is averaging 7.9 days for 1-mile laterals and 8.6 days for 1.5-mile laterals in the San Juan Basin so far this year. WPX’s best time in the basin for a 1.5-mile lateral to date is 7.5 days.
Additionally, WPX received final approval from the Bureau of Land Management to form the Kimbeto Wash unit.
WPX has plans for up to 23 laterals in the unit averaging 7,000 feet per lateral. The company now has six federal units approved in its Gallup development area.