Newfield has been a dominate player in the Woodford Shale. They pointed out a few months ago they are going to be significantly scaling back on the program due to a few things. One, the current pricing environment makes their more liquids rich areas more attractive, and two, they can do this because the vast majority of their Woodford acreage is held by production. According to their recent conference presentation, 90% of the acreage is HBP. This presentation also shows 1-2 rigs is sufficient to hold the primary term acreage. Their second quarter results indicated they would be running 4 rigs at year end 2010, and hold this rig count through 2011, im not sure if this has changed or not. Newfield, like much of the industry, feels there will be a better time for natural gas growth.
Here are a few Drillinginfo generated charts highlighting some Newfield Woodford activity. This first map shows southern Arkoma Basin Newfield current producing leases we have data for. It is bubbled by maximum monthly production (Mcf/d) and colored by cumulative produced gas. This oklahoma production data is reported on a lease level, so these cums may be from multiple wells on the same lease. That being said, there are some pretty substantial leases shown. 18 have produced greater than 8.5 Bcf gas.
Another thing to note about the Newfield program are their super extended laterals (SXLs, laterals which reach up to 9,000’+ and cost about $7MM.) Newfield has been saying that about 1/3 of their acreage will be developed in this manner. I have highlighted what I believe are two such laterals in the graphic below. I used the label feature to show their production, and the measure distance feature to obtain lateral lengths.
The Woodford is not the only gas shale being scaled back, Petrohawk has said the same about their Haynesville efforts. At the DUG Eagle Ford conference earlier in the week, I was listening the Sheffield of Pioneer talk about how very pessimistic he is about natural gas prices in the near future. I’ll be keeping an eye on how this affects the dry gas area of the Woodford Shale.