The Mid-Continent region is now Newfield Exploration's largest division in terms of proved reserves -- representing 1.1 Tcfe at year-end 2007, or about 45% of the Company's proved reserves. Planned investments in the region approximate 40% of Newfield’s total 2008 budget, or $620 million. The largest portion of spending will be in the Woodford Shale, located in southeastern Oklahoma’s Arkoma Basin.
Trice said, “We plan to invest approximately $460 million in the Woodford Shale. We expect to drill about 100 operated horizontal wells this year and participate in another 60-70 outside operated wells. About 50% of our operated wells will be drilled with lateral lengths greater than 3,000’, over 50% will be drilled from multi-well pads and 90% of the wells will be drilled with the benefit of 3-D seismic data. With this level of activity, our gross operated Woodford Shale production is expected to exit 2008 at approximately 250 MMcfe/d, an increase of 50% over the 2007 exit rate of 165 MMcfe/d.”
Now in the early stages of the development phase, Newfield continues to be encouraged with the results of its extended lateral wells in the Woodford. To date, the Company has drilled 14 wells with lateral lengths greater than 3,000 feet. The 10 most recent extended lateral completions were drilled and completed for an average of $7.0 million gross and are expected to have an average EUR of at least 4.5 Bcfe gross. The net revenue interest averages about 81%.
Newfield already has processed 3-D seismic coverage on more than 60% of its net acreage. By the end of 2008, approximately 95% of Newfield’s acreage will have 3-D seismic coverage. The 3-D data is instrumental in selecting well locations and planning extended laterals.
The Company has now spud 160 operated horizontal wells in the play. Industry has now spud 460 horizontal wells (NFX has an interest in approximately 60% of total wells). There are 42 active drilling rigs in the Woodford Shale play.
Newfield has approximately 165,000 net acres in the Woodford Shale. The Company's average investment in its position is approximately $500 per acre.
Production recently hit a new high of 97 MMcf/d in the Company's Stiles Ranch Field, located in the Texas Panhandle. The 2008 budget has a 2-4 rig program in 2008. Newfield’s working interest is predominately 100%. Newfield has approximately 50,000 net acres in its Granite Wash Play area.
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