HOUSTON, Oct. 20 /PRNewswire-FirstCall/ -- Newfield
Exploration Company (NYSE: NFX) today provided a detailed
operational update on its core operating regions. The operations
update coincides with the release of the Company's third quarter
2010 financial results. A conference call is planned for
8:30 a.m. CDT on Thursday, October 21, 2010. To participate in the
call, dial 719-457-1527 or listen through the investor relations
section of the website at http://www.newfield.com.
Newfield's third quarter 2010 total production was 71 Bcfe. Oil
production in the quarter was negatively impacted by approximately
0.3 MMBbls related to a damaged export pipeline offshore
Malaysia, which has been repaired.
Production in the third quarter of 2010 increased 9% over the third
quarter of 2009. Domestic oil production in the third quarter of
2010 was up 30% over the third quarter of 2009. For the full year,
Newfield expects that its production will be at the upper end of
its guidance range, or 286 – 288 Bcfe, an increase of more
than 11% over 2009 production. Newfield's increase in guidance is
attributable to higher oil production.
Rocky Mountain's Oil Program
The centerpiece of Newfield's domestic oil program is its Rocky
Mountain region. Current net production from the area is nearly
25,000 BOEPD.
Monument Butte Field Area – Gross oil production from the
Monument Butte field area has increased nearly 5,000 BOPD since the
beginning of 2010. With a five operated rig program, Newfield is on
track to drill a record 375 wells in the Monument Butte field in
2010. Newfield expects that it will average less than five days to
drill and case a well in 2010. Recent completed well costs in
Monument Butte continue to range from $700,000 – $900,000 (gross).
Recent drilling has focused on assessing the Company's northern
extension acreage which covers 73,000 gross acres adjacent to the
Greater Monument Butte Unit. Newfield has drilled more than 250
wells to date in this area and has successfully assessed more than
25% of the northern extension acreage. Newfield's average working
interest on the northern acreage is approximately 70%.
Based on its current pace of drilling activities, Monument Butte
production is expected to grow about 20% in 2011 and firm oil sales
agreements are in place on approximately 85% of the expected
volumes. Newfield continues to work with area refiners and expects
sufficient refining capacity to be in place in 2011 and beyond.
The Monument Butte field area covers approximately 180,000 gross
acres. Newfield estimates that approximately 4,700 development
drilling locations remain.
Williston Basin – Newfield continues to run four operated rigs
in the Williston Basin. Current net production is more than 5,000
BOEPD and is expected to exit 2010 at more than 6,500 BOEPD.
Year-to-date, the Company has drilled 20 of its planned 29
wells.
Newfield is currently operating three rigs west of the Nesson
Anticline. Through a 10-well program, Newfield successfully
assessed the Catwalk, Aquarium and Watford areas and has now entered the
development drilling phase. The Company is today drilling or
completing five wells with lateral lengths exceeding 9000'.
Similar to the Company's Woodford Shale development, longer
lateral completions have improved operating efficiencies in the
Williston Basin. Year-to-date, Newfield's drill and complete costs
per lateral foot have averaged about $1,250 on its 4,000' lateral wells. The Company
estimates that its drill and complete costs per lateral foot will
reduce to approximately $900 on its
9,000' laterals. Year-to-date, gross completed well costs on 4,000'
and 9,000' laterals have been approximately $5 million and $8
million, respectively. In 2011, substantially all of the
Company's planned wells are anticipated to have completed lateral
lengths of approximately 9,000'.
Recent Williston Basin completed well results are included in
the table below.
|
|
Well
Name
|
IP Rate
(BOEPD)
|
30-Day
Avg.
(BOEPD)
|
Producing
Formation
|
Area
|
Lateral
Length
|
Frac
Stages
|
Working
Interest
|
|
Bluefin
1-13H
|
2,497
|
526
|
Bakken
|
Aq./Watford
|
4,000'
|
16
|
62%
|
|
Gladys
Federal 2-9H
|
3,631
|
1,231
|
Bakken
|
Westberg
|
4,000'
|
16
|
47%
|
|
Clear Creek
Federal 1-25H
|
2,360
|
647
|
Bakken
|
Westberg
|
3,900'
|
17
|
45%
|
|
Harold
1-31H
|
2,194
|
689
|
Bakken
|
Westberg
|
4,200'
|
17
|
40%
|
|
Wahus
1-12H
|
2,293
|
677
|
Bakken
|
Westberg
|
4,100'
|
17
|
41%
|
|
Megamouth
1-8H
|
2,519
|
683
|
Bakken
|
Aq./Watford
|
4,100'
|
17
|
81%
|
|
Clear Creek
Federal 1-26H
|
2,922
|
*
|
Bakken
|
Westberg
|
4,400'
|
17
|
40%
|
|
Dahl
1-5H
|
1,532
|
*
|
Bakken
|
Aq./Watford
|
4,300'
|
17
|
99%
|
|
Sawfish
1-1H
|
1,841
|
*
|
Bakken
|
Aq./Watford
|
4,100'
|
17
|
97%
|
|
Ursus
1-20H
|
2,114
|
*
|
Bakken
|
Lost
Bear
|
4,100'
|
18
|
77%
|
|
*recent completion, 30-day
average production not yet available
|
|
|
|
|
|
|
|
|
|
International Oil Developments
Newfield's international oil liftings in the third quarter were
1.3 MMBbls. The largest contributor to Newfield's international oil
production was Malaysia where
liftings in the quarter averaged approximately 12,000 BOPD net.
Liftings in the third quarter reflect approximately 0.3 MMBbls of
deferred production related to a damaged offshore export pipeline
in Malaysia in July 2010. The pipeline was repaired in
approximately four weeks and production resumed in early
August.
Oil Play Assessment Areas
Approximately $150 million of the
Company's 2010 capital budget is dedicated to assessing new oil
plays. The two largest efforts underway encompass nearly 600,000
net acres – the Eagle Ford Shale in southwest Texas and the Southern Alberta Basin of northwestern
Montana.
Eagle Ford Shale – Newfield has more than 300,000 net acres in
the Maverick Basin of southwest
Texas. The acreage, located in
Maverick and Dimmit Counties, is prospective for both the
Eagle Ford and Pearsall Shales and an active drilling campaign is
underway. To date, Newfield has completed and commenced production
on four wells. An additional five wells are in various stages of
completion. Newfield's operated rig count has ranged from three to
five rigs in recent months with plans to drill about 15 wells in
2010.
Southern Alberta Basin – The
Company recently completed a horizontal well in the Southern Alberta Basin. Newfield plans to
drill up to eight wells to assess the oil potential on its more
than 260,000 net acres in Glacier County,
Montana. Prospective geologic formations included the
Lodgepole, Middle Bakken, Three
Forks and Nisku.
Natural Gas Developments
Granite Wash – Newfield has drilled 31 horizontal wells (26
producing and five in various stages of completion) in the Granite
Wash play. Current net production is approximately 115 MMcfe/d and
Newfield's working interest is about 70%. The Company owns
interests in approximately 46,000 net acres in the play.
Gross initial production to date from the Company's Granite Wash
horizontal wells has averaged approximately 17 MMcfe/d (24-hour
rate). To date, 12 of the wells have been completed in the Marmaton
formation where initial production has averaged approximately 15
MMcf/d and 620 BCPD. To date, 14 of the wells have been completed
in the Red Fork/Atoka formations and initial production has
averaged 16 MMcfe/d. Newfield's acreage has multiple prospective
drilling horizons. The Company's 2010 drilling program has
successfully assessed nine horizons and an additional test is
expected by year-end. The remainder of the 2010 drilling
program, as well as 2011's planned activities, will focus on the
rich gas and condensate horizons in the Marmaton.
Woodford Shale – Drilling activity in the Woodford Shale was
slowed in early 2010 as a result of weak gas prices. Today, about
90% of Newfield's 172,000 net acres in the Woodford Shale is held
by production. Newfield is currently running four operated rigs in
the Arkoma Basin.
Newfield has drilled over 350 horizontal wells in the Woodford
to date. Development drilling is today exclusively focused on super
extended laterals (SXLs), or wells with a horizontal length greater
than 5,000'. Newfield expects that its average Woodford lateral
length in 2010 will be approximately 6,500'.
The Company's Woodford production is approximately 190 MMcfe/d
net. To date, the Company is producing from 17 SXLs and expects to
have 21 SXLs producing by year-end 2010. The SXL's drilled to date
have an average lateral length of approximately 8,400', with
average gross initial production (24-hour rate) of nearly 8
MMcfe/d. Gross well costs for SXLs today average $8 – $10
million, depending on completion type and lateral length.
Newfield's average working interest in the Woodford is about
70%.
Deepwater Gulf of Mexico
The Company's deepwater Gulf of
Mexico production is approximately 100 MMcfe/d net and
represents about 10% of total Company production. The Company's
Gladden oil development, located at Mississippi Canyon 800, is
expected to commence production in December
2010 at approximately 4,750 BOPD gross. Newfield operates
Gladden with a 57.5% working interest.
Newfield Exploration Company is an independent crude oil and
natural gas exploration and production company. The Company relies
on a proven growth strategy of growing reserves through an active
drilling program and select acquisitions. Newfield's domestic areas
of operation include the Mid-Continent, the Rocky Mountains,
onshore Texas and the Gulf of Mexico. The Company has international
operations in Malaysia and
China.
**This release contains forward-looking information. All
information other than historical facts included in this release,
such as information regarding estimated capital expenditures,
production and cost reductions, drilling and development plans, the
timing of activities and liftings is forward-looking information.
Although Newfield believes that these expectations are reasonable,
this information is based upon assumptions and anticipated results
that are subject to numerous uncertainties and risks. Actual
results may vary significantly from those anticipated due to many
factors, including drilling results, oil and gas prices, industry
conditions, the prices of goods and services, the availability of
drilling rigs and other support services, the availability of
refining capacity for the crude oil Newfield produces from its
Monument Butte field in Utah, the
availability and cost of capital resources, labor conditions and
severe weather conditions (such as hurricanes). In addition, the
drilling of oil and gas wells and the production of hydrocarbons
are subject to governmental regulations and operating
risks.
For information,
contact:
|
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Investor Relations: Steve
Campbell (281) 847-6081
|
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Media Relations: Keith Schmidt
(281) 674-2650
|
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Email: info@newfield.com
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SOURCE Newfield Exploration Company
Copyright . 20 PR Newswire