WPX’s oil discovery in the Gallup Sandstone, which began early development in 2013, is the direct result of having three decades of on-the-ground knowledge, experience and know-how about what’s in the ground in the San Juan Basin.
Our 2015 capital program includes $290-$310 million for developing our assets in the San Juan Basin, primarily for more development of our Gallup oil discovery.
In 2014, WPX completed 47 Gallup oil wells. We also reduced our spud-to-rig-release time by 40 percent to 13.5 days. We increased our local oil volumes of oil by over 300 percent in 2014 to 7,000 barrels per day.
By second-quarter 2015, we had increased our local oil production in the San Juan Basin even further, up to an average of 8,500 barrels per day.
Now, WPX also is producing oil from another region in the state – the Permian Basin. WPX acquired another company (RKI Exploration & Production) in August 2015 that has an office in Carlsbad.
As previously reported through our disclosures, our new properties in the Permian Basin have been producing approximately 22,000 boe/d – more than half of which is oil.
We plan to invest $100-$120 million in our new Permian oil properties during the remainder of 2015.