Purchase increases position to approximately 100,000 acres
The acreage purchase represents an estimated 100 gross drilling locations, boosting WPX’s tally in the San Juan Gallup to approximately 500.
WPX now owns or controls approximately 100,000 acres in the core of the Gallup oil window where it has spud more than 100 wells following a successful discovery in early 2013.
Since then, WPX has lowered its drilling times on Gallup wells by 75 percent. The company recently drilled two Gallup wells in less than eight days each. During the second quarter, WPX is averaging 9.8 days per well so far.
“We’re very pleased with the productivity of our Gallup wells and our
ongoing improvements in drilling times and cost reductions,” says
“This acquisition reflects our confidence in our ability to achieve
WPX’s overall drilling and completion costs are down 24 percent on its Gallup wells this year compared to its average in 2014. The company reported first quarter Gallup oil volumes of 8,100 barrels per day.
WPX also is increasing its returns in the oil development through the
construction of company owned and operated oil, gas and water gathering
systems and has taken steps to lower the basis differential on its
Gallup oil sales from roughly
WPX Energy develops and operates oil and gas producing properties
in North Dakota, New Mexico and
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.
WPX Energy, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360