WPX Plans to Increase Bakken Activity

WPX Energy Rockies Asset Map
WPX Energy Rockies Asset Map

WPX Energy announced this week they plan to increase activity in their Williston operations during the second half of the year.

Related: Shale Oil: Sky's the Limit

WPX currently has an inventory of 14 Williston wells awaiting completion and the company will resume completions in August, starting with a four-well pad.

Since the fourth quarter of 2014, many companies pulled back oil rigs as crude prices declined. WPX will be the first to approve more rigs in the play since prices have stabilized. The company credits significant process improvements, structural changes to lower costs and successful discussions with key vendors as key to this decision to move forward.

The combination of cost reductions and higher EURs gives us the opportunity to generate returns in excess of 30 percent in today’s commodity price environment,” says Rick Muncrief, president and chief executive officer.

WPX Highlights:

  • Drilling and completion costs in the basin approaching $8 million per well (decrease of more than 30%)
  • A blended type curve of approximately 750 Mboe for wells in the Middle Bakken and Three Forks formations, up 25%
  • Completion modifications include moving toward a higher intensity slick-water design targeting the potential to increase initial production rates and EURs even further.
  • Total planned capital investments for full-year 2015 remain in line with the company’s previous guidance of staying within its projected operating cash flow

Read more at wpxenergy.com