Between 2015 and Q1, 2017, WPX Energy, Inc. (ticker: WPX) has executed a textbook ‘about-face’ on its production, altering its producing ratios from 67% natural gas, 33% liquid to 64% liquid and 36% natural gas production.
The company’s total production was approximately 90 MBOEPD during Q1, 2017. The company also established a joint venture with Howard Energy Partners to develop oil gathering and natural gas processing infrastructure in the Delaware.
WPX operates in three basins: the Williston, San Juan, and Delaware.
Delaware basin
In its Delaware operations, the company holds approximately 135,000 net acres. In January, 2017, WPX completed an acquisition in the Delaware for 18,100 net acres for approximately $775 million in cash. This transaction increased the company’s number of potential drilling locations from approximately 5,500 to 6,400.
Source: WPX Energy
During Q1, 2017 WPX undertook a 9-well spacing test in Loving County, Texas utilizing tighter horizontal spacing in order to assist with the company’s Wolfcamp A development plan. The test showed an average 30-day production rate of 1,538 BOEPD, per well.
WPX also identified four wells producing out of the Wolfcamp A averaging between 1,914 and 2,234 BOEPD during the 30-day initial production.
Williston basin
WPX’s Williston basin assets total approximately 85,000 net acres. Three pads brought to production—with three wells each—within the Williston assets exhibited 30-day average rates of 1,375 BOEPD, 2,145 BOEPD, and 1,703 BOEPD. One of the nine wells exhibited a peak rate of 3,343 BOEPD.
San Juan basin
The company’s first 2017 completion in the San Juan basin had an initial production rate of 1,410 BOEPD, averaging 74% oil. During Q1, 2017, the company spudded a total of 14 wells and completed five wells. WPX’s San Juan assets total approximately 235,000 net acres.
Development
WPX’s 2017 development plans are Delaware-weighted, with 55% of its drilling and completions capital—the total of which will be between $870 and $940 million—focused on projects in the Delaware basin. Of that total $870 to $940 million, the Williston basin and San Juan basin will receive 27% and 18%, respectively.
WPX hopes to have between 30 and 36 wells brought to sales by the end of Q4, 2017 in the Delaware. In the Williston, the company hopes to have between 8 and 10 wells brought to sales; and in the San Juan basin, WPX hopes to have between 10 and 12 wells brought to sales over the same time period.
WPX Energy, Inc. presenting at EnerCom’s The Oil & Gas Conference® 22
WPX will be a presenting company at the upcoming 2017 EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
