ALLOTTEE UNIT UPDATES

WPX Energy is forming federal units that include Navajo Allotted leases and are of interest to the community. A unit is a specific area of land. This is one of the first steps that happens in the process of asking for permission to drill for oil.

When a well produces oil, we pay royalties to the mineral owners in that unit. For Navajo leases, we submit these payments to the Office of Natural Resources Revenue (ONRR) to distribute. Here is an update on each of the units that we are working on:

ALREADY APPROVED

South Chaco Unit
This unit was approved in September 2014. We have drilled four wells and plan to drill more. Production from the four wells is generating royalty payments to the mineral owners in the unit.

Kimbeto Wash Unit
The Federal Indian Minerals Office (FIMO) and the Bureau of Land Management (BLM) approved the unit in March 2016. We have drilled one well and we plan to drill more. Production from the well is generating royalty payments to the mineral owners of the unit.

North Escavada Unit
The Federal Indian Minerals Office and the Bureau of Land Management also approved the unit in May 2016. We have drilled one well and we plan to drill more. Production from the well is generating royalty payments to the mineral owners of the unit.

Northwest Lybrook Unit
This unit was approved in January 2015. We have drilled six wells and plan to drill more. (Some new wells are are in the permitting process.) Production from the six wells we already drilled is generating royalty payments to the mineral owners in the unit.

Rodeo Unit
The unit was approved by BLM and FIMO in May 2017. We drilled 2 wells in June 2017 and completed them in August 2017. We plan to drill additional wells in the unit during 2018.

West Lybrook Unit
This unit received final approval from BLM and FIMO in December 2015. We drilled six wells in this unit during 2016 and we plan to drill about 40 more in 2017. Production from the wells is generating royalty payments to the mineral owners of the unit.

UNITS IN PROCESS

South Escavada Unit
The New Mexico Oil Conservation Division (NMOCD) approved this unit in May 2017. We’re awaiting final approval from BLM and FIMO. We’re currently marking locations for well pads, pipelines and access roads while we wait for final unit approval.

West Escavada Unit
The NMOCD conducted a hearing in August 2017 to review our application to expand this unit by 960 acres. We ‘re awaiting division approval for this unit prior to asking the BLM and FIMO for final approval on the unit.

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