TULSA, Okla. – The Bureau of Land Management presented WPX Energy (NYSE:WPX) with the Restore New Mexico award at an industry conference this week for supporting the agency’s ongoing efforts to improve and protect public lands.
“WPX has demonstrated their leadership in the San Juan Basin for responsible energy development by proposing plans of development that incorporate a long-term view for the health of the land and maximizing the extraction of the resource,” said David Evans, who manages the BLM’s Farmington district office.
WPX Energy has approximately 159,000 net acres under lease in the San Juan Basin, including 31,000 that canvass an area where the company announced an oil discovery in August.
The company’s first six oil wells in the San Juan Basin have an average I.P. rate of 819 barrels of oil equivalent per day. The production is coming from the Gallup Sandstone in the Mancos formation. The company is on pace to drill another six to eight Gallup wells by the end of 2013.
WPX also operates 880 natural gas wells in the San Juan Basin and holds a joint ownership interest in another 2,400 wells. The company has three decades of experience in the region.
“As we plan wells, we take an approach that considers best management practices, the goals of public agencies and the desires of our landowners. For us, it’s about maintaining the strength of our word and keeping our commitment to work together,” said Bryan Guderian, WPX's senior vice president of operations.
The Restore New Mexico award recognizes WPX for supporting legacy well restoration, vegetation management and a multi-year mule deer study that will help the BLM replicate high-value habitat, as well as for extensive planning that reduces emissions, truck traffic, ground disturbance and soil compaction.
David Evans added, “WPX conducts on-site meetings prior to each phase of a project with private landowners and government agencies. WPX employees also take advantage of continuous learning opportunities to enhance their awareness of resource concerns and issues that affect land management decisions.”
Fifty-eight people work at WPX’s San Juan Basin office in Aztec, N.M., which has a local payroll of approximately $4.5 million.
Overall, WPX’s staff that supports its New Mexico operations has earned 13 awards for wildlife protection, environmental stewardship, making improvements to public roads, emergency preparedness and implementing best practices. WPX also received the Restore New Mexico award in 2009.
About WPX Energy, Inc.
WPX Energy is an exploration and production company focused on developing its significant oil and gas reserves, particularly in the Piceance, Williston and Appalachian basins. WPX also has domestic operations in the San Juan and Powder River basins, as well as a 69 percent interest in Apco Oil and Gas International. Go to http://www.wpxenergy.com/investors.aspx to join our e-mail list.
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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.