Newfield Exploration Company (NFX) held a conference call on July 22, 2011, and commented on the company’s operations in the Granite Wash during the second quarter of 2011. The company is targeting the Marmaton formation on its leasehold here due to the high liquids content of these wells.
“Our gross production recently set a new high at 190 million cubic feet per day or about 135 million cubic feet equivalent net. To date, we've drilled 47 horizontal wells in the play and our gross IP rates continue to average about 16 million cubic feet equivalent per day.”
“The Marmaton formation is our target this year due to its liquid-rich composition. Our most recent wells in the Marmaton have commenced production between 16 and 23 Mcfe per day gross. Oil and condensate comprise more than 500 to 600 barrels of oil per day in these recent wells. Our working interest averages about 75%.”
“We now expect to drill more than 30 wells in the Granite Wash in 2011 and to grow our production here by more than 25% over 2010.”
“Our drilling efficiency gains in this play have offset rising service costs year-to-date. We drilled a recent best-in-class well in just 24 days, and we're averaging about 28 days on each of the wells that we drilled today. We are moving towards longer lateral completions and have a few wells planned and will have lateral lengths in excess of 8,000 feet later this year.”
“We've added about -- we have about 50,000 net acres in the Granite Wash plate today, including about 10,000 net acres in new prospective areas. Our assessment of these new areas is now underway and we'll have additional details to share with you later this year.”