Newfield’s Extended Lateral Wells in Dimmit County Produce 900 BOED

We should know results of the 10,000 ft lateral test early in 2013
Newfield Eagle Ford Well Performance

Newfield Focus Areas | Click to Enlarge

Newfield Explorations has drilled four extended lateral (SXL) wells in Dimmit County to date. Initial wells results look promising with initial production rates near 900 boe/d. The company has drilled the wells with 7,500 ft laterals in as little as 12 days. That’s moving. The company has five additional SXL wells planned before year-end and also plans to test a wells with a 10,000 ft lateral. Results point to SXL wells yielding more than 500,0000 barrels and 10,000 ft laterals might grow potential EURs even further. The company commented:

Again, we are using controlled flowback to manage the production, limit pressure drawdown and maximize EURs. Our South Texas drilling team is able to drill and case these wells in 12 days for less than $3 million. We are seeing some relief in completion cost and expect the favorable trends to continue into 2013.

The company expects pad drilling will drive total drilling and completion costs down to $8 million per well. Lower costs will help the company reach internal rates of return of more than 50% per well. That alone has prompted the company to invest more heavily in 2013.

We will be increasing our planned development activities in the Eagle Ford and expect to drill as many as 35 wells. In addition, we will be working more than 200,000-plus net acre position into the economic window.

Newfield’s current development efforts are focused in four areas of the country. The company is targeting the resource potential of the Bakken Shale of North Dakota, Cana Woodford of Western Oklahoma, oil prospects in Utah, and the South Texas Eagle Ford Shale.

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R.T. Dukes

R.T. Dukes

Managing Editor at
R.T. is the managing editor of In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790


  1. Good morning, Mr. Dukes. When Newfield states that it will reach returns of 50% per well, what does that mean, sir? I take that to mean that over the life of a well that costs 8,000,000 dollars they hope to earn 4,000,000 dollars of profit, for instance a 1.5:1 ROI, is that correct?

    • R.T. Dukes RT Dukes says:

      Mike, that should have read “internal rate of return” and not simply “return”. I’ve updated the article to reflect the change.

      Good catch. Thank you,


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