Agency Recognizes WPX Energy for Water Management and Drilling Innovation
TULSA, Oklahoma, Aug. 15 - /EWire/ --
WPX Energy (NYSE:WPX) received two awards in Colorado today for its water management practices and role in advancing modifications to a drilling rig that can now be deployed in tight, narrow canyons.
“Our position in the state’s Piceance Basin is unique in the industry, driven by the fact that we are in the geologic core of the basin and have pioneered many technological firsts that have made us the leading, most cost-efficient producer here,” said Ralph Hill, WPX chief executive officer.
“Our employees relentlessly explore ideas and find new ways to improve our business. Today, our total production in the state provides enough fuel to meet the energy needs of more than 3 million homes per day.
“This is also an area where we are ideally suited to rapidly increase our natural gas production in the right price environment,” Hill added.
WPX operates more than 4,000 natural gas wells across 212,000 net acres in western Colorado where the company averaged 712 million cubic feet per day of net natural gas production and 30,000 barrels per day of NGL production during the second-quarter.
The honors mark the seventh and eighth for WPX from the Colorado Oil and Gas Conservation Commission over the past five years. The company also received special recognition in 2005 for 10 consecutive years of outstanding operations.
WPX recycles the water produced from its wells in the Piceance Basin to hydraulically fracture and complete future wells. In 2010 and 2011, the company made multi-million-dollar investments in new technology and infrastructure at its water treatment facilities in Rulison, Colo. and Parachute, Colo.
The COGCC recognized these investments and other measures, which have helped WPX reduce its water-handling costs in the basin by 60 percent and water-hauling traffic by 95 percent. WPX also expects new technology at the two facilities to reduce air emissions by as much as 1,200 tons per year.
The second award highlights WPX’s work with Nabors Drilling Co. to modify an existing rig to fit into the tight, narrow canyons and topography of the Rocky Mountains.
The team worked on the rig design for more than a year to engineer what it calls a “split rig” that separates the derrick from other parts of the drilling rig such as tanks, engines and other equipment.
The setup requires about half the acreage of a typical drilling pad, while connecting the separate parts of the split rig with piping and electrical cables. The derrick and support equipment can be located up to 400 feet apart.
WPX piloted the split rig design in the Wheeler Gulch area north of Parachute, Co., where it successfully drilled 21 wells that were completed from a remote, centralized fracturing pad.
“This is about implementing ongoing improvements, doing what we can to reduce the amount of surface area for development, and being able to reach areas that were previously inaccessible,” said Alan Harrison, WPX’s Piceance Basin vice president.
“Our Colorado employees capitalized on their talent, teamwork and work ethic to take some ideas from the drawing board and turn them into something that benefits our stakeholders and shareholders in tangible ways,” he added.
WPX employs more than 400 people in Colorado via its offices in Denver and Parachute. The company’s 2011 state-wide payroll was approximately $38 million.
For the first-six months of 2012, WPX invested $236 million in capital expenditures for its operations in the state’s Piceance Basin, completing 156 gross (139 net) wells.
About WPX Energy, Inc.
WPX Energy is an exploration and production company focused on developing its significant oil and gas reserves, particularly in the liquids-rich Piceance Basin, the Bakken and Three Forks oil shales and the Marcellus Shale. WPX also has domestic operations in the San Juan and Powder River basins, as well as a 69 percent interest in Apco Oil and Gas International. Go to http://www.wpxenergy.com/investors/subscribe-to-email/ to join our e-mail list.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.
Additionally, the SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. From time to time, we elect to use “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.” The SEC defines“possible” reserves as “those additional reserves that are less certain to be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC‘s reserves reporting guidelines. Investors are urged to consider closely the disclosure in our SEC filings that may be accessed through the SEC’s website at www.sec.gov.
The SEC’s rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.
For more information:
WPX Energy, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360