Newfield Exploration Company - Mid Continent (Anadarko and Arkoma Basins)
Percent of 2008 Total Company Reserves: 47%
Percent of 2009e Total Company Production: 38%
Percent of 2009 Capital Budget: 43%
Location: Headquarters in Tulsa, Okla., with operations in southeastern/western Oklahoma and the Texas Panhandle.
Focus: Long lived, unconventional natural gas resource plays.
Links:
Mid-Cont Gross Operated Production Growth Chart
Woodford History - NFX Gross Production
Woodford: Largest NFX 2009 Investment
Woodford Shale Play Location
Woodford Horizontal Well Finding and Development Cost Metrics
Granite Wash Operated Production Growth Chart
The Mid-Continent has been Newfield’s fastest growing region over the last several years and now comprises 47% of total proved reserves. The Company has been active in the Mid-Continent since 2001. Since entering the area, Newfield has tripled its proved reserves and production. With headquarters in Tulsa, Okla., this region provides longer-lived reserves and has lengthened our overall reserve life index.
The Mid-Continent is Newfield’s most significant investment region. In 2009, it plans to invest about $610 million in the Mid-Continent. The two most active plays, the Woodford Shale and the Granite Wash, are characterized by extensive prospect inventories, large acreage positions and a multi-year inventory of lower risk drilling opportunities. Approximately $400 million is allocated to Newfield’s 2009 development program in the Woodford. At year-end 2008, the Company owned an interest in more than 750,000 gross acres and about 2,000 gross producing wells in the Mid-Continent.
In 2008, Newfield entered the development phase in the Woodford Shale, located in the Arkoma Basin of southeast Oklahoma. Approximately 85% of wells will drill from common pads in 2009 with longer laterals - significantly lowering development costs. The Company expects continued operational improvements and efficiency gains throughout the year – a benefit of this development mode.
As of July 2009, Newfield production from the Woodford Shale was 240 MMcfe/d gross and an inventory of approximately 20 wells that have been drilled but not yet completed. At this time, it is operating 10 rigs, all under term contract. Of the 10 running rigs, four roll off term in the balance of 2009. Despite a lower rig count, the Company expects that current plans will grow net operated production approximately 18% over 2008. Newfield has approximately 165,000 net acres associated with the Woodford Shale play.
In July 2009, the Company provided an update on its recent successes in the Granite Wash play, located in the Texas Panhandle and western Oklahoma. Since late 2008, Newfield has operated the drilling and completion of seven horizontal Granite Wash wells. The seven wells had average initial production rates of 22 MMcfe/d. Three operated drilling rigs are running in the field today.
An extensive drilling program has yielded gas production from more than 30 horizons in the Stiles Ranch Field, ranging from 12,000' to 15,000'. We believe there are multiple prospective zones for horizontal development. We currently have approximately 20,000 net acres in the Stiles Ranch field and an additional 15,000 net acres in western Oklahoma. Approximately 80% of the acreage is currently held-by-production.
A minimum of a three-rig program is planned for the remainder of 2009 where we expect to drill about 14 wells.