Divesting San Juan Basin Gathering System to
WPX is receiving
The agreement increases the amount of WPX’s recent divestitures to
The sales are part of WPX’s deleveraging plan following its acquisition
Currently, WPX has net debt of
“I’m pleased with the success of our asset sales,” stated Rick Muncrief, WPX president and chief executive officer. “We exceeded our 2015 target and will continue to prioritize debt reduction in 2016.”
Adil Rahmathulla, Partner at
Under the terms of the agreement, WPX will continue to operate the gathering system for at least two years with the opportunity to continue in ensuing years. The parties expect to close in first-quarter 2016.
Upon closing, the gathering system will consist of more than 220 miles of oil, gas and water gathering lines that WPX installed in conjunction with its drilling in the Gallup oil play where it made a discovery in 2013.
Over the past two years, WPX has rapidly grown its footprint in the Gallup play to approximately 100,000 acres with oil production exceeding 10,000 barrels per day in third-quarter 2015.
Subsequent to the close of the third quarter, WPX initiated production on a three-well Gallup pad that produced approximately 2,500 barrels per day of oil over the first 30 days. This represents an increase of more than 85 percent vs. the company’s previous IP rates on its Gallup wells. The improvement is driven by four changes WPX made to its Gallup drilling and completion design.
In November, WPX also divested a
WPX is a domestic energy producer with operations in the western
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, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360