WPX Provides Niobrara Updates in Earnings

WPX Corporate LogoWPX Energy has completed the top two producing Niobrara wells according to the Unconventional Oil & Gas Center.  With their wells producing billions of cubic feet of natural gas, their exploration program is of great interest to both industry and investors.  Today in WPX’s earnings call, they released an update on their Niobrara activities which is detailed below. Click here to read the full 3rd quarter 2013 earnings release.

[Excerpt from WPX Earnings Release]

NIOBRARA SHALE UPDATE

Over its first 10 months, WPX’s initial Niobrara Shale discovery well has produced 2 billion cubic feet of natural gas. The discovery well is currently producing at a rate of 3.5 MMcf/d at a flowing tubing pressure of 1,950 pounds per square inch (psi).

WPX’s second Niobrara well was completed at the end of September, posting an initial rate of 11.8 MMcf/d at a flowing casing pressure of 5,700 psi. With a reservoir pressure of 8,300 psi, the well found pressure gradients of 0.94 psi/foot that were even higher than the initial discovery well, despite being in a shallower part of the basin.

The second Niobrara well is three miles to the southeast of the initial discovery well, where the Niobrara formation is shallowest on the company’s acreage. It was drilled to a total vertical depth of 9,062 feet with a 4,883-foot horizontal lateral. Completion operations included 19 frac stages.

The Unconventional Oil & Gas Center ranks WPX’s initial discovery well as the No. 1 Niobrara Shale producing well in the United States. WPX’s latest well ranks No. 2.

A third Niobrara horizontal well was drilled during July and August, located approximately 2,000 feet to the west of WPX’s initial discovery well. This well will be sidetracked due to a casing failure that occurred before completion operations could be commenced.

Drilling on the company’s next two Niobrara wells is starting. A vertical delineation well located 12 miles to the east of the discovery well was spud on Nov. 5. A horizontal step-out located three miles north of the discovery well is scheduled to spud this weekend. The vertical well marks an acceleration of WPX’s delineation work. The well was originally scheduled for 2014.

As previously announced, WPX plans to more than double its Niobrara drilling in 2014, with 10 to 12 wells expected. Combined with previous Niobrara activity, this will serve to delineate 80 percent of WPX’s Valley acreage.

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