"We have seen solid assessment results year-to-date in our key domestic operating areas," said
"Our shift to oil, which began in 2009, continues as more than half of our expected production in the second half of 2012 will be oil/liquids. For 2012, we expect our oil/liquids production will increase nearly 30% over 2011 levels. Our liquids production today is largely 'black oil'. With the strength of our performance year-to-date, we are again revising our full-year 2012 production expectations higher. Our focus today is clear: grow oil production, grow cash flow and position our Company for strong performance in 2013."
Newfield's oil and liquids liftings in the second quarter of 2012 were 6.1 MMBbls (67,000 BOPD) and comprised 49% of total Company production. Approximately 4% of Newfield's second quarter production was NGLs. Second quarter 2012 oil/liquids volumes were 40% higher than in the comparable period of 2011. Natural gas production in the second quarter of 2012 was approximately 40 Bcf, or an average of approximately 440 MMcf/d. On an equivalent basis, Newfield's production in the second quarter of 2012 was 76.4 Bcfe.
For the second time this year, Newfield raised its 2012 expectations for total Company production to 296 – 304 Bcfe (previous guidance was 292 – 302 Bcfe). With increasing activities planned in key oil regions in late 2012 and ongoing leasing in the Cana Woodford, Newfield expects that its capital investments in 2012 will approximate
Assessment Plays Benefitting from "Controlled Flowback"
In all of Newfield's wet gas condensate and oil assessment plays, the Company is employing "controlled flowback" in its completion practices. This includes recent horizontal well results disclosed in this news release from the Cana Woodford,
In late 2010, Newfield began to aggressively lease acreage in the Cana Woodford play in the Anadarko Basin of Oklahoma. At the time, these leases were south and east of the majority of industry activity. Today, more than 45 industry rigs are running in this play. Newfield now has more than 135,000 net acres in the play, up from 125,000 net acres in early 2012. The Company ran an average of five operated rigs in the first half of 2012 and, with continued strong results, plans to further increase activity levels in 2013.
Newfield is very encouraged with its results in the play to date. Today's drilling campaign is focused on the "South Cana" – an area prone to high oil and liquids yields that encompasses about 80,000 net acres. Recent notable wells from the Company's South Cana drilling program include:
Wright 1H-9 – Based on available public data, Newfield's Wright well (74% working interest) had the highest initial flow rate (all rates are 24-hour) achieved to date in the South Cana Woodford. The well had an initial gross production rate of more than 1,900 BOEPD (27% oil). The well averaged approximately 1,450 BOEPD over its first 7 days of production. The well has a 4,730' lateral length.
Branch 1H-16 – The Branch well (100% working interest) had an initial gross production rate of more than 1,850 BOEPD (27% oil). The well averaged approximately 1,550 BOEPD over its first 7 days of production. The well has a 4,950' lateral length.
Faith 1H-12 – The Faith well (52% working interest) had an initial gross production rate of nearly 1,000 BOEPD (22% oil). The well averaged approximately 900 BOEPD over its first 30 days of production. The well has a lateral length of 4,200'.
Greenwood 1H-4 – The Greenwood well (63% working interest) had an initial gross production rate of 1,000 BOEPD (16% oil). The well averaged 930 BOEPD over its first 7 days of production. The well has a lateral length of 4,900'.
Williams 1H-19 – The Williams well (94% working interest) had an initial gross production rate of approximately 650 BOEPD (69% oil). The well averaged 430 BOEPD over its first 30 days of production. The well has a lateral length of 4,900'.
The Company also has approximately 55,000 net acres located in the "North Cana." This region is in very early stages of assessment, with drilling planned in the second half of 2012.
Newfield is a proven operator in the Woodford formation of Oklahoma where it has drilled approximately 380 horizontal wells in the Arkoma Woodford since 2005. In the second half of 2012 and into 2013, Newfield plans to drill SXL wells (up to 10,000' laterals) in the Cana Woodford, a practice that led to improved production rates, higher recoveries of hydrocarbons, lower finding and development costs and improved returns in the Arkoma Woodford.
Net production from Newfield's Mid-Continent region is approximately 57,000 BOEPD.
Uinta Basin Oil Developments
Newfield's production from the
The region's production growth is being driven by strong results from the
Uteland Butte – Newfield is very encouraged with production rates from its first two horizontal wells completed in the "pressured" section of the Uteland Butte. Initial production rates from the two pressured wells were nearly three times the rate of the Company's initial wells in the normally-pressured Uteland Butte section.
Grace 3-16 – The Grace is the most recent well to commence production with initial gross production of 1,476 BOEPD (87% oil), and averaged 1,276 BOEPD over its first 7 days of production.
Thorne 4-2 – The Thorne had initial gross production of 1,435 BOEPD (87% oil), and averaged 929 BOEPD over its first 30 days of production.
The Company is currently completing two additional "pressured" Uteland Butte wells. Newfield has more than 200,000 net acres prospective for the Uteland Butte. In development mode, Newfield believes that these wells will be drilled and completed for about
Wasatch – Since mid-2011, Newfield has drilled and completed more than 30 vertical wells in the pressured Wasatch play, a deeper geologic formation prevalent on approximately 60,000 net acres. Year-to-date 2012, Newfield has completed 18 vertical Wasatch wells with an average initial gross production rate of nearly 900 BOEPD and a 30-day average gross rate of more than 400 BOEPD. On average, the pressured vertical Wasatch wells can be drilled and completed for about
The Company recently commenced production on its first two horizontal pressured Wasatch wells. Although encouraged with early flowback, the wells continue to clean-up and have not yet achieved peak initial production rates. Peak rates are expected in the next few weeks.
In the second half of 2012, the Company plans to drill an additional 15-20 pressured wells in the
Newfield has approximately 230,000 net acres in the Maverick Basin of
Year-to-date, Newfield has drilled three successful SXL wells with lateral lengths of approximately 7,500' in
Based on production data to date, Newfield estimates the SXL wells have a gross EUR of more than 500 MBOE. Newfield has approximately 40,000 net acres under assessment and development in the Eagle Ford. Six additional SXL wells are planned for the second half of this year, including a 10,000' lateral.
In addition, Newfield is participating in an outside-operated Eagle Ford program in
Drilling efficiencies are evident in the Company's Eagle Ford operations, with the recent SXLs being drilled and cased in as few as 12 days. Newfield estimates that SXL wells can be drilled and completed for approximately
Current net production from the Company's
Newfield's net production in the
Moberg Federal 29-32-2H – A recent notable completion was the Moberg well (72% working interest), which had initial gross production of approximately 3,500 BOEPD and averaged 1,380 BOEPD over its first 30 days of production. The well was drilled on a two-well pad and had a lateral length of approximately 11,000'. The well was drilled and completed for approximately
As drilling has transitioned into development from common pad locations, efficiency gains continue to be realized. Newfield recently drilled a SXL well with a lateral length of 11,500' in 20 days. This compares to a 2010 and 2011 average days-to-depth of 45 days and 35 days, respectively. Over the last two years, increased lateral lengths have helped to lower finding and development costs, increase recoveries of oil in place, improve returns and minimize the surface impact of operations.
"In the fourth quarter of 2011, we purposely slowed our activities in the
The Company is on pace to grow its oil production from the
International Oil Developments
The East Belumut/Chermingat complex achieved a recent production record of more than 43,000 BOPD (previous high was 40,000 BOPD, first quarter 2012) or 16,500 BOPD net. The increase in production is a result of recent successful development drilling and facility optimization.
The East Piatu field, which commenced production in early 2012, is today producing 15,000 BOEPD gross (9,000 BOEPD net) and phase II development drilling is underway. The Puteri field is producing approximately 6,000 BOPD gross (2,600 BOPD net).
In addition to the ongoing oil field developments listed above, Newfield recently secured a rig to drill an appraisal well to test a large oil prospect on a 2008 discovery on Deepwater Block 2C (Paus). In addition, the Company will drill an exploration well later this year on Block SK 310. This target is 2.7 miles from Newfield's 2010 pinnacle reef gas discovery located on the same license. The Company serves as operator of both blocks with a 40% interest in Block 2C and a 30% interest in SK 310. Results from the wells are expected in late 2012.
Fabrication of facilities for the Pearl oil field, located offshore
** This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding estimated or anticipated drilling plans and planned capital expenditures, 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
For additional information, contact the Newfield Communication department.