The New Mexico Oil Conservation Division is continuing a hearing on WPX Energy’s application to drill wells that reach oil and natural gas resources located deep within 5,279 acres of land located approximately 5 miles south of Nageezi, New Mexico.
The proposed drilling area is known as the Kimbeto Wash Unit. It includes federal and Allotted Indian lands situated in all or parts of Sections 17-21 and 28-32, Township 23 North, Range 9 West, San Juan County, New Mexico.
A hearing on our proposal took place on September 17 and October 1. On October 15, the Oil Conservation Division will take the proposal under advisement again. There will likely not be an opportunity for the public to provide testimony at this hearing. The purpose of the Oct. 15 continuation is for WPX to provide documentation with regard to notices about the hearing.
When a unit is formed, all of the oil and gas leases within the specified acreage are combined into a single participating area, which means all of the mineral owners under each of these leases will share in the royalties, regardless of where a well is drilled within the unit.
So far, WPX has paid approximately $2 million in royalties to Navajo Allottees for the oil and natural gas we have produced on other units that were previously approved by the Oil Conservation Division. We expect this amount to grow as more wells are drilled and more oil is produced.
Please stay tuned for more updates about the status of the Kimbeto Wash proposal and information about drilling in the other units that have already been formed.