Newfield STACK Pilots Outperforming 1.1 MMBOE Type Curve

The company's plans assume at least a $50 per barrel oil price. When questioned about how a price environment between $45 to $50 would affect Newfield, Chairman, CEO, and President Lee Boothby was confident that Newfield would be able to deliver even at $45 per barrel.

SCOOP/STACK

Most of the first half of 2017 was spent developing in the STACK. As a result, Newfield anticipates shifting its focus to completions for the latter part of the year. STACK pilots are projecting above the 1.1 mmboe EUR type curve. Specifically, cumulative production from the Dorothy Pilot was significantly above the 1.1 mmboe type curve. Additionally, the Dorothy Pilot had an average IP30 of 1,244 boe/d (64% oil, 82% liquids). The current EUR estimate on these wells is 1.4 mmbbls. 



Like its previous Gen17 HBP wells in the STACK, Newfield's newly tested Eastern HBP wells are also projected above the 1.1 mmboe type curve. The average IP24 of these wells was 1,647 boe/d (66% oil, 82% liquids and the IP30 was 1,420 boe/d (65% oil, 82% liquids). 

Finally, by the end of the year, 10 operated wells will be producing in the SCORE (Sycamore, Caney, Osage Resource Expansion). Currently, Newfield is using 12 DSUs in the area. 

Initially, well costs in the STACK for Newfield (with a 2100 completion design) were $8.8 million per well. When questioned about this higher than expected price, Boothsby said that the average across the footprint of the company's acreage would be between $7.8 and $8.3mm per well. The western part of the acreage carries a slightly higher cost which brings the average well cost in the area up slightly. The initial forecast was $7.5 million per well but Boothsby blames the increased cost on inflation and not any difficulties experienced by the company.

Williston Basin

Although Newfield is less focused its Williston asset, the company still boasted recent well results above the 1,100 mboe type curve. The Off-Anticline Malm 4-well pad had an average IP24 of 3,808 boe/d (64% oil, 83% liquids) causing Newfield to raise its Williston type curve to 1 mmboe. Currently Newfield is running one rig in the area and still has more than 200 locations. Even with these favorable results, Newfield's emphasis will remain in the Anadarko Basin where it will focus on advancing the development of the depth, scale, and quality of those assets. 

As of now, however, Newfield is not considering selling these assets.