Newfield pushes ahead with STACK drilling following purchase by Encana

Even as Newfield Exploration based in Houston came under new ownership, Newfield hasn’t backed off its oil and gas exploration in Oklahoma’s STACK play.

The latest reports for permits to drill issued by the Oklahoma Corporation Commission show Newfield was issued 8 of the 9 permits for drilling in Kingfisher county.

It’s planning 8 wells on a single pad located at 27 17N 8W which puts the drilling site about 5 miles southwest of the  town of Loyal. All are part of the Lucile #1708 2-H-27x series of wells to be drilled in an area that Newfield and other companies have found lucrative.

Earlier in the week, Newfield was purchased in a $5.5 billion deal by Encana Corp. The Canadian-based firm also agreed to take on Newfield’s net debt which totals $2.2 billion.

As part of the deal, for each unit held by Newfield shareholders, they will get 2.6719 shares worth of Encana. But when word of the purchase was announced, the value of shares in both companies tumbled, causing the value of Newfield to slip to $4.58 billion.