Newfield Sets Record With Stack Oil Well

Newfield Exploration Co. (NYSE: NFX) said March 27 it's off to a "roaring start in 2017" with a record oil well in Oklahoma's Stack Play in the Anadarko Basin.

The company's Burgess well, located in Kingfisher County, Okla., achieved a 24-hour flow rate of 2,931 barrels of oil equivalent per day (boe/d), of which 69% was oil, and a 20-day average rate of 2,492 boe/d, of which 70% was oil. The well had a 4,859 ft lateral length.

When compared against publicly available industry data, the Burgess achieved record 24-hour oil production per 1,000 ft of gross perforated interval (GPI)—or 417 barrels (bbl) of oil per 1,000 ft GPI, the company said.

In addition, the well had a record 20-day average oil production rate of 361 bbl per 1,000 ft GPI. These rates are the highest oil production rates per 1,000 ft GPI publicly reported to date in the Scoop and Stack plays.

With recent outperformance in the Anadarko Basin and its other producing regions, Newfield said it expects its first-quarter 2017 production will likely exceed the high-end of guidance. Domestic production is expected to average about 137,700 boe/d, or 3,500 boe/d above original guidance (132,000 boe/d to 134,200 boe/d).

"Our recent results from enhanced completions provide us with confidence around our near-term plans, as well as the future productivity of Stack," Lee K. Boothby, Newfield's chairman, president and CEO, said in a statement. "The year 2017 is critical for us. We are rich in catalysts as we test development well densities, optimize our completions and explore exciting new stacked-pay potential across our vast Anadarko Basin acreage position."

The Burgess is one of 16 recent wells with enhanced completion designs located in the heart of the company's more than 300,000 net Stack acres.

Newfield updated results for the nine previously disclosed Stack wells (February 2017) and provided early production rates for an additional seven wells with enhanced completions.

Five of the wells now have 90 days of production history, averaging 1,215 boe/d (65% oil), which is more than 40% above the company's 1.1 MMboe gross type curve when normalized to 10,000 ft lateral length.

Newfield said it's gathering significant new data in 2017 and the results will ultimately be used to appropriately describe its development well type curve in Stack.

The Stack is the foundation to Newfield's future transition to a company that can sustainably grow its production by double-digits within cash flow—"even if today's oil prices persist," Boothby said.

"We are off to a roaring start in 2017 and we look forward to updating our stockholders on the execution of our business plan as the year progresses," he said.