Little wonder Newfield Exploration has been gobbling up all the land it could acquire in Oklahoma’s STACK play in Kingfisher, Canadian and Blaine Counties. It finally revealed this week its intentions to expand operations in a 300-square mile area where it reportedly had paid $4,500 an acre to lease from landowners. Those are landowners who just 3 years ago received $400 an acre from Chesapeake Energy before Chesapeake unloaded the shares amidst the fallout with founder Aubrey McClendon.
The Texas-based company acknowledged this week it will spend 70% of its 2015 capital budget in the STACK and SCOOP/Springer plays of the Anadarko Basin. That leaves only 12 percent budgeted for Newfield’s drilling operations in North Dakota’s Williston play, 3 percent in China, 7 percent in the Uinta play and 8 percent elsewhere. The Anadarko Basin will provide an estimated production in 2015 of 41 percent for the company. Newfield’s acquired 210,000 net acres in the STACK and told investors this week it intends to drill more than 50 STACK wells in 2015, hoping to add to the nearly 54,000 barrels of oil averaged a day in the fourth quarter of 2015. The company also has 85,000 net acres in the SCOOP.
It claims it has nearly 5,500 identified potential drilling locations in the Anadarko Basin but more astonishingly is its contention that the acreage it has in the Basin has “original hydrocarbons in place upwards of 135 million barrels of oil per section.” Repeating the claim—that’s 135 million barrels of oil for every 640 acres. As shown on a STACK production map, 13 wells drilled in northern Canadian County and southern Kingfisher county produced at a range of 429 barrels of oil a day to 1,641 a day. In addition to the well pumping at a rate of 1,641, another well produced at a rate of 1,041 barrels of oil equivalent a day. Another well came in at 910 barrels a day while still another produced 889 barrels every day. Two others were in the 700 barrel a day range.
Adding to Newfield’s investment claims in the STACK is the reduced cost of drilling wells, going from an average 37 days per well in 2012, to 33 in 2013 and 25 days last year. It’s 2015 goal is 22 days per well.
As OK Energy Today reported earlier in the week, Newfield is so excited about central Oklahoma that it’s reduced operations to one rig in North Dakota and suspended all drilling operations in the Eagle Ford of southern Texas.
...In the Carrizo Springs bar, a manager from Chesapeake, the oil producer, said: “We are stacking rigs and laying people off every day. Everyone is.... ..But the oil price drop means companies are reluctant to commit fresh spending. This means calling a halt to drilling on land that has been leased, stopping fracking wells that have been drilled, and ending production from wells already fracked..”
2015 will be a lost year for CannonBall and his POS company
I believe that the oil prices are ruling the day. I am waiting for oil prices to stabilise for any movement. WB spud to test the area soon. 2015 2nd half of 2015 hopefully price of oil stabilise. $60.00. Hang on.
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