Newfield Exploration Company (NFX) held a conference call on July 23, 2010, to discuss additional details on the company’s earnings for the second quarter of 2010. The company also gave out further details on its activities in the Woodford Shale.
Newfield Exploration Company has cut its rig count in the Woodford Shale in a response to the decline in natural gas prices and the relative attractiveness of oil and wet gas plays.
Newfield Exploration Company reported that to keep production flat, the company would need to operate a four-rig program in the Woodford Shale.
“Our rig count on the Woodford has decreased from nine rigs at the beginning of the year to four rigs operating today. But we continue to post efficiency gains. An example of this would be our lateral penetration rates, which have improved more than 20% year-to-date versus our average historical numbers. This significant gain in penetration rate allows us to do more with fewer rigs, for drilling longer laterals and we’re drilling them faster.”
“In the Woodford, we’re substantially held by production, up until this quarter, we reported a net acreage number of around 166,000 net acres. You’ll note in our release, it is up over 172,000 net acres. So, we have added to our position in the Woodford but of that, 155ish, somewhere in that zip code of those acres are held by production.”
“We do have the option as the second half unfolds to defer some completions into 2011. And since we have done that before, we will monitor the market conditions as things play out and certainly that’s one of the tools in our tool kit and we will use it as we think it is appropriate. But at this time, all of the deferred completions from 2009 are behind us.”
Source: Seeking Alpha