Newfield recently had their 2Q2010 conference call and press release. They are in the process of scaling back natural gas and NGL production due to the superior returns of oil plays. This affects their Woodford Shale program tremendously. They have dropped from 9 rigs at the beginning of the year, to 4 rigs currently and will continue with 4 through 2010. A similar rig decrease is happening in their Granite Wash acreage.
One reason why they can afford to do this is because about 155,000 / 172,000 net Woodford acres are held by production already. They aren’t hurting for Woodford production either. To date they have drilled about 350 horizontal wells in the area. In May, Newfield hit 370 MMcfepd in the Woodford, a record for them. A large reason for the record production levels was due to the deferred completions from 2009. They finished these completions by the early second quarter.
So where does Newfield go from here? They discussed the evaluation of two new oil plays, the Alberta Basin and Eagle Ford Maverick Basin as well as another established oil resource play, the Monument Butte in the Rockies. When the time comes where natural gas prices strengthen, they can easily come back to their Mid-Continent assets.
Check the Woodford Unconventional Update for more information including saved searches, current press releases and more.
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