WPX Adds Acreage | Russell T. Rudy Energy LLC
WPX Energy has bought 14,300 net acres in the San Juan Basin’s Gallup Oil Window for $26 million. The company now owns approximately 100,000 acres in the core of the New Mexico play and has already drilled 100 wells. The recent purchase is expected to provide the opportunity to drill that many more.
The operator hopes the new acreage will help them build on their previous success in the Gallup which began with a 2013 discovery. WPX continues to increase efficiencies and reduce drilling and completion costs. The company is now averaging drilling times of 9.8 days per well this year and hopes to reduce these costs to $4 million per well. They also hope to average an estimated ultimate recovery of 450,000 barrels of oil equivalent per well. The company is currently producing 8,100 barrels of oil per day from the play and is confident it can increase profit margins on production.
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/6/22/wpx-energy-adds-acreage-in-gallup-oil-play .
