This summer, WPX acquired another company (RKI Exploration & Production) that greatly expanded our presence in New Mexico.
WPX CEO Rick Muncrief referred to the transaction as a “defining moment for our company.” Indeed, it was the largest transaction in WPX’s history.
With the purchase, we gained an office in Carlsbad and entered the state’s Permian Basin, which is known for having layer after layer of oil and gas bearing reservoirs similar to a stack of pancakes, extensive production history, long-lived reserves and high drilling success rates.
In fact, the newly acquired Permian assets have existing production from 10 of 12 prospective benches in a 9,000 foot hydrocarbon-charged stratigraphic column that includes the Wolfcamp, Bone Spring, Avalon and Delaware Sands intervals.
WPX now has a substantial presence in the core of the Permian’s Delaware Basin that includes:
- Approximately 22,000 boe/d of existing production – more than half of which is oil;
- Approximately 92,000 net acres – approximately 98 percent of which is held by production;
- More than 3,600 gross risked drilling locations across stacked pay intervals; and
- More than 375 miles of scalable gas gathering and water infrastructure.
Adding the Permian assets increases WPX’s total proved liquids reserves by 33 percent to 268 MMbbls as of year-end 2014. Total net resource potential for the Permian assets is estimated at more than 1.1 billion boe.
Additional details are available in the full-length press release.