Newfield Sees Success in its Woodford Shale Play

Newfield Exploration reports drilling successes in its Woodford Shale play in Oklahoma's Arkoma Basin.

Since October 2005, Newfield has drilled or participated in eight horizontal wells in the Woodford Shale play, of which five are currently being completed. The most recent Newfield operated wells include: the Parker 1H-36 (73 percent working interest) with initial production of more than 6 MMcf/d and production after 14 days of 4.8 MMcf/d; the Reeder 1H-10 (80 percent) with initial production of 3 MMcf/d and a flow rate after seven days of 2.6 MMcf/d; and the Whitlow 1H-27 (57 percent) with initial production of 3 MMcf/d and a flow rate after seven days of 2.4 MMcf/d.

The Reeder and the Whitlow wells were recently fracture stimulated and are still unloading fluids. Newfield holds interests in three earlier horizontal wells operated by another company.

"We are very encouraged with our early successes in the Woodford Shale Play," said Lee K. Boothby, Newfield's Mid-Continent vice president. "This is a 'home-grown' play and our dominant acreage position was leased between 2003 and 2005. The combination of our 100 vertical wells and recent horizontal results helps support our belief that we can drill and complete horizontal wells for approximately $4 million (gross) and recover 2.5 - 3.0 Bcfe per well."

Newfield has an interest in approximately 110,000 acres in the Woodford Shale Play, an area that covers 60 miles from north to south and 15 miles from east to west primarily in the Oklahoma counties of Hughes, Coal, and Pittsburg. Since 2003, the company has drilled about 100 vertical wells, which currently provides gross production of approximately 41 MMcfe/d. Drilling efforts to date confirm the extent of the Woodford Shale throughout the company's acreage position. The Woodford Shale ranges in thickness from 120-240 feet. To better exploit the shale's natural fractures, drilling efforts began focusing on horizontal wells in late 2005.

In 2006, Newfield plans to drill approximately 65 wells in the Woodford Shale--45 are expected to be horizontal. Newfield has six rigs running in the play and four of the rigs are drilling horizontals.