In a Bloomberg article published yesterday, Lee Boothby, the CEO of Newfield Exploration (NYSE:NFX) shared some thoughts on the future development of the STACK and SCOOP plays in Oklahoma. Here are some highlights from that article.
- NFX CEO Lee Boothby says he does not expect a major ramp-up of oil production in Oklahoma’s hot new shale plays anytime soon, even as companies invest billions of dollars in the region.
- Crude prices near $50/bbl are not high enough for explorers to start taking on the kind of debt needed to significantly accelerate drilling, and it may be a year or two before companies learn enough about the Scoop and Stack’s underground geology to gear up production, Boothby tells Bloomberg.
- NFX has five rigs operating now in the Oklahoma shale fields and could quickly double that, the CEO says, but he is cautious about moving too quickly after two years of pain for the industry caused by low oil prices.
NFX Purchases CHK STACK Acreage
Back in May of this year, NFX announced that they had agreed to acquire 42,000 net acres in the Anadarko basin STACK play of Oklahoma from a subsidiary of Chesapeake Energy Corp., Oklahoma City, for $470 million.
That deal expanded Newfield’s STACK footprint to 265,000 net acres, overlapping with the firm’s existing acreage in Kingfisher, Blaine, Dewey, and Canadian counties. More than 90% of the acreage acquired was held-by-production.
This Transfer of Operator (OCC form 1073) was recently filed back in August of this year and transferred ownership in 169 wells. These wells can be viewed here below on the Form 1073, provided here for reference.
NFX STACK Activity – Past 3 Year Footprint
NFX Company Profile
Newfield Exploration Company (Newfield), incorporated on December 5, 1988, is an independent energy firm engaged in the exploration, development, and production of crude oil, natural gas and natural gas liquids (NGLs). The Company’s activities are focused primarily on large-scale, onshore liquids-rich resource plays in the United States. The Company’s divisions are the United States and China. Principal areas of operation are the Anadarko and Arkoma Basins of Oklahoma, the Williston Basin of North Dakota, the Uinta Basin of Utah and the Maverick, and Gulf Coast basins of Texas. In addition, it has oil developments offshore China. The Company’s proved reserves of approximately 510 million barrels of oil equivalents (MMBOE) consist of over 310 MMBOE proved developed producing, over 20 MMBOE proved developed non-producing and over 180 MMBOE proved undeveloped reserves. The Company’s proved liquids reserves are approximately 290 million barrels. Over 71% of its proved liquid reserves are crude oil or condensate. The Company’s proved natural gas reserves are approximately 1,305 billion cubic feet (Bcf). The Company owns mineral interests in over 454,000 gross and 113,000 net acres.
For a compilation of data specific to statewide activity that includes and interactive and proprietary “Rig Count” Dashboard, Click here
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