WPX Energy Increases Piceance Basin Drilling
Will Average Seven Rigs for Balance of Year
TULSA, Okla. -- June 5, 2013
WPX Energy (NYSE:WPX) today announced that it now plans to employ seven
drilling rigs in western Colorado’s Piceance Basin for the remainder of 2013,
up from its previously announced five-rig drilling plan.
The increased development activity is expected to add an incremental 1.9
billion cubic feet equivalent of production throughout the remainder of 2013,
increasing the basin’s exit rate from 701 MMcfe/d to 730 MMcfe/d at year-end.
This is in line with the higher end of WPX’s guidance of 1,261 MMcfe/d to
1,295 MMcfe/d for 2013.
The benefit of increased drilling in 2013 will be more fully realized in 2014
given the timing of drilling and well completions. Next year, the additional
wells could add up to 15 Bcfe in additional cumulative production.
Approximately $60 million of capital is associated with adding two rigs this
year. The increase is in line with WPX’s overall range of $1 billion to $1.2
billion for 2013 capital spending.
“Now’s the right time for us to accelerate our natural gas production and the
Piceance is the right place to start,” said Ralph A. Hill, WPX’s president and
chief executive officer. “Natural gas prices are stronger, and this helps lay
the groundwork for our 2014 development.
“WPX has a unique position in the Piceance. We have everything in place there
to be among the first and fastest to increase our production. We have the
permits, favorable processing contracts, take-away transportation capacity and
large-scale, low-cost, efficiency driven operations to yield attractive
The additional drilling this year will target the company’s reserves in the
Williams Fork formation where WPX has developed more than 4,100 tight sands
wells. The company’s record drilling time for a Williams Fork well in the
Piceance Valley is 3.7 days.
As previously announced, WPX continues to plan to drill a total of four
horizontal Niobrara wells in the Piceance during 2013 to begin delineation of
the company’s Niobrara discovery. Over its first 150 days, WPX’s Niobrara
discovery well has produced 1.25 billion cubic feet of natural gas. The
discovery well is currently producing 5.5 MMcf/d at a flowing tubing pressure
of about 3,000 pounds per square inch.
About WPX Energy, Inc.
WPX Energy is an exploration and production company focused on developing its
significant oil and gas reserves, particularly in the Piceance, Williston and
Appalachian basins. WPX also has domestic operations in the San Juan and
Powder River basins, as well as a 69 percent interest in Apco Oil and Gas
International. Go to http://www.wpxenergy.com/investors.aspx to join our
This press release includes “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this press release that
address activities, events or developments that the company expects, believes
or anticipates will or may occur in the future are forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the company. Statements
regarding future drilling and production are subject to all of the risks and
uncertainties normally incident to the exploration for and development and
production of oil and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks; environmental
risks; and political or regulatory changes. Investors are cautioned that any
such statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected in the
forward-looking statements. The forward-looking statements in this press
release are made as of the date of this press release, even if subsequently
made available by WPX Energy on its website or otherwise. WPX Energy does not
undertake and expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our filings with
the Securities and Exchange Commission, available from us at WPX Energy, Attn:
Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s
website at www.sec.gov.
Additionally, the SEC requires oil and gas companies, in filings made with the
SEC, to disclose proved reserves, which are those quantities of oil and gas,
which, by analysis of geoscience and engineering data, can be estimated with
reasonable certainty to be economically producible – from a given date
forward, from known reservoirs, under existing economic conditions, operating
methods, and governmental regulations. The SEC permits the optional disclosure
of probable and possible reserves. From time to time, we elect to use
“probable” reserves and “possible” reserves, excluding their valuation. The
SEC defines “probable” reserves as “those additional reserves that are less
certain to be recovered than proved reserves but which, together with proved
reserves, are as likely as not to be recovered.” The SEC defines“possible”
reserves as “those additional reserves that are less certain to be recovered
than probable reserves.” The Company has applied these definitions in
estimating probable and possible reserves. Statements of reserves are only
estimates and may not correspond to the ultimate quantities of oil and gas
recovered. Any reserve estimates provided in this presentation that are not
specifically designated as being estimates of proved reserves may include
estimated reserves not necessarily calculated in accordance with, or
contemplated by, the SEC‘s reserves reporting guidelines. Investors are urged
to consider closely the disclosure in our SEC filings that may be accessed
through the SEC’s website at www.sec.gov.
The SEC’s rules prohibit us from filing resource estimates. Our resource
estimations include estimates of hydrocarbon quantities for (i) new areas for
which we do not have sufficient information to date to classify as proved,
probable or even possible reserves, (ii) other areas to take into account the
low level of certainty of recovery of the resources and (iii) uneconomic
proved, probable or possible reserves. Resource estimates do not take into
account the certainty of resource recovery and are therefore not indicative of
the expected future recovery and should not be relied upon. Resource estimates
might never be recovered and are contingent on exploration success, technical
improvements in drilling access, commerciality and other factors.
WPX Energy, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360
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