Newfield's Eagle Ford Production Is Set to Surge at Year-end

December 4, 2013 R.T. Dukes

Newfield Exploration's Eagle Ford production grew 9% from the second quarter to the third quarter to average 8,200 boe/d. Fourth quarter production is expected to surge to more than 12,000 boe/d as well pads in the West Asherton area come online.

Growth in the last few months of the year puts Newfield on pace to grow production 70% year over year. The company's production is approximately 56% oil, 19% NGLs, and 24% natural gas.

Newfield is drilling horizontal laterals that range from 5,000-10,000 ft in the West Asherton Field in Dimmit County and has been able to drive well costs down approximately 20% to $7.3 million.

“We have even greater confidence in our ability to hit our corporate level targets and we intend to deliver on our promise of doubling liquids production from our four key plays by the end of 2015.”

— Lee K. Boothby, CEO

Newfield Plans Fewer Wells, but Strong Growth in 2014

Newfield lowered its operated rig count from two to one in the third quarter.

The company plans to drill fewer wells next year, 20 in 2014 compared to 36 in 2013, but still expects play-wide production to grow 30%.

Read the company's third quarter press release at newfield.com

Newfield Moving To Pad Completions and Driving Costs Down

May 16, 2013 R.T. Dukes

Newfield (NFX) is one of the first to show what I expect we'll see from others later in the year.

NFX's Eagle Ford production was down in the first quarter, BUT it will surge in the second quarter when well pads that are already drilled are completed.

Others will experience this as well. Pad drilling will make production profiles look much more choppy than they have been to date.

Newfield drilled six new super extended laterals from in the quarter and lowered its well costs by $400,000 per well to $7.8 million. Recent well costs have fallen to $7.7 million. That's a good trend that will improve realized returns. The Eagle Ford is yielding returns that rank among the highest in the company.

“Our Eagle Ford returns are among the highest in the company.”

— Gary Packer, COO

The company is running two rigs and plans to drill most of its wells from common pads. Newfield produced approximately 5,200 boe/d in the fourth quarter of 2012, 4,830 boe/d in the first quarter of this year, and is expected to produce 7,000 boe/d in the second quarter of 2013. Newfield expects to exit the year producing approximately 14,000 boe/d.

Production growth is expected to be 75% in 2013 and 50% in 2014.

Read the full press release at newfield.com

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

October 25, 2012 R.T. Dukes

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.

Newfield Q3 2011 Operations Update - Well Results and Costs

October 20, 2011 Kenny DuBose

Newfield Exploration announced its third quarter earnings along with an update on its Eagle Ford operations. The company has a 335,000 acre position in the Maverick Basin across Dimmit, Maverick, and Zavala counties. Drilling is currently focused in the southern portion of the company's acreage where infrastructure is accessible. The company also has a pilot program active in the West Asherton area in Dimmit County. The company has completed 16 wells that have produced 650 barrels of oil equivalent in the first 24 hours. The wells have expected EUR's of 300,000 barrels. Wells have been drilled in as little as 7 days at average costs of $6.6 million for drilling and completion.

The Eagle Ford is the primary drilling target for the company, but Newfield has completed 6 wells targeting the Georgetown formation and 2 wells targeting the Pearsall Shale. The company currently produces more than 7,000 barrels of oil equivalent per day from the area.

Read more at our Newfield Exploration Eagle Ford Profile

Newfield - Anadarko Acquire TXCO Resources Eagle Ford Assets

January 13, 2010 Kenny DuBose

Newfield Exploration and Anadarko Petroleum have emerged as the buyers now bankrupt TXCO Resources' acreage in the Maverick Basin of South Texas. Anadarko will absorb approximately 80,000 net acres in the southern portion of the basin for approximately $93 million. Newfield gets the lion's share of assets by acquiring over 350,000 gross acres (300,000 acres net) for $217 million. The Eagle Ford is really beginning to heat up. South Texas will now become a core area for Newfield and major asset for Anadarko Petroleum.

"Newfield Exploration Company (NYSE: NFX) and Anadarko Petroleum Corporation (NYSE: APC) announced today a joint transaction to acquire TXCO Resources Inc.'s (TXCO) assets in the Maverick Basin of Southwest Texas for up to $310 million. The final amount will be determined at closing, which is expected in mid-February 2010."

"According to the terms of the transaction, a wholly owned subsidiary of Anadarko will acquire more than 80,000 net acres in this basin from TXCO for approximately $93 million and increase its operated working interest in these properties to 75 percent."

"Newfield will acquire substantially all of TXCO's remaining assets in the Maverick Basin, which include more than 350,000 gross acres (300,000 net acres), for approximately $217 million. Current net production of the assets to be acquired by Newfield is 1,500 BOEPD, of which two-thirds is oil. The acreage has multiple geologic targets, primarily in the Eagleford and Pearsall formations."

Read the full press release at Newfield.com