TULSA, Okla.--(BUSINESS WIRE)--WPX Energy (NYSE:WPX) today received the Best Discovery award from Oil and Gas Investor magazine recognizing the company’s Niobrara Shale natural gas discovery in western Colorado.
WPX originally announced the discovery in January 2013. The Niobrara discovery well has since produced more than 2.5 billion cubic feet of cumulative gas production. WPX is working to better assess the resource and identify ways to reduce drilling and completion costs while optimizing ultimate recovery.
WPX has the lease rights to approximately 180,000 net acres of the Niobrara/Mancos shale play underlying its existing leasehold in the Piceance Basin. WPX has nine rigs deployed in the Piceance – eight for its established, low-risk, repeatable Mesaverde drilling and another rig that is focused on Niobrara delineation activity.
“We’re grateful for this acknowledgement. It comes from a source that understands and covers the industry inside and out,” said Rick Muncrief, WPX’s president and chief executive officer.
“WPX has a long record of innovation, investment and technical achievement in western Colorado, where we have developed more than 4,400 wells in a highly efficient manner.”
Over the past decade, WPX has invested more than $7.5 billion to develop its holdings in western Colorado’s Piceance Basin. WPX plans to spend another $475 million to $495 million in Colorado in 2014.
Additionally, WPX’s oil and gas production in Colorado has generated more than $1 billion in royalties for private landowners and more than $500 million in federal royalties over the past decade, along with more than $550 million in ad valorem, severance and conservation taxes for the state.
“Energy development has substantial benefits for Colorado. Through our actions and commitment, WPX has demonstrated that we can do it safely and responsibly,” Muncrief added.
WPX Energy has been the largest natural gas producer in Colorado since the late 2000s. WPX’s volumes in Colorado today are enough to meet the energy needs of about 3 million homes per day. The company employs 450 people at its offices in Denver and Parachute, which had a combined payroll of $52 million last year.
WPX reported first-quarter 2014 net production of approximately 700 million cubic feet equivalent per day from its Piceance Basin operations, including associated oil and natural gas liquids (NGL) volumes. Last year WPX completed 250 gross (237 net) wells in the basin and drilled four Niobrara wells.
In addition to the Best Discovery award, WPX has received 20 other honors for its Colorado operations, including 15 from the state’s Oil and Gas Conservation Commission for water management, water recycling, water quality protection, green completions, use of new technology, reclamation and best practices.
WPX’s Piceance Basin wells are also part of the FracFocus chemical disclosure registry that can be found at www.fracfocus.org.
About WPX Energy, Inc.
WPX Energy is an independent exploration and production company formed during a spinoff two years ago. Overall, WPX has more than 30 years of experience in its sector along with 40 local, state and federal awards for efficiency, innovation and corporate social responsibility.
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.