Oklahoma’s STACK has been so good to Houston, Texas based Newfield Exploration Company, the energy producer has issued an interim operations update and raised production expectations for the second quarter and the rest of 2016.
Second quarter 2016 net production is now expected to exceed the mid-point guidance by nearly 0.5 million barrels and is estimated to be nearly 15.2 million barrels according to the announcement made by Newfield.
“Our Anadarko Basin production continues to exceed expectations with strong well performance across our expanding footprint,” said Lee K. Boothby, Newfield Chairman, President and CEO. “We have now production-delineated more than 95% of our legacy STACK position. (Kingfisher and Canadian Counties)”
He said after nearly 100 wells and four years of drilling activity, the company continues to deliver wells on or above its average type curve.
“Recent drilling and completion efficiencies are leading to ‘best in class’ wells, both in terms of costs and production performance,” added Boothby. The company expects drilling development wells for less than $6 million and to have a portion of its STACK rig fleet in active field development in 2017.
Newfield indicated that net production from the Anadarko Basin comprises about 56% of total domestic production and is expected to average more than 83,000 BOEPD in the second quarter, which is an increase of 6% from the first quarter of 2016.
The company cited several wells with large production, wells recently highlighted by OK Energy Today. One was the Pearl Well that had a 24-hour IP rate of 2,233 BOEPD gross and averaged 1,780 barrels a day over its first 30 days.
At the same time, Newfield said it recently spud its first STACK infill spacing pilot, the Chlouber. It is considered to be the first of two planned pilots to test downspacing and provide information to full-field development activities planned for 2017.