Newfield sees big Uinta oil potential in new plays

By OGJ editors
HOUSTON, July 20
-- Newfield Exploration Co., Houston, said it sees a net resource potential of more than 700 million bbl of oil equivalent on its holdings in the Uinta basin in the wake of two acquisitions that closed in May that added 70,000 net acres for $300 million.

Newfield will increase its operated rig count from the historic five rigs to eight in 2012 to aggressively develop its 6,000-plus well inventory of oil locations. The company owns working interests averaging more than 70% in 250,000 net acres in the basin.

The company expects 2012 Uinta basin daily production to increase at least 25% from 2011. The increased play options combined with fewer permitting constraints will allow Newfield to greatly increase its future growth in production and reserves there.

Newfield has drilled six horizontal wells to the Uteland Butte member of the Eocene Green River formation at 6,000-9,000 ft true vertical depth, which covers 80% of the company’s acreage in the basin. The wells, in Monument Butte field, had initial rates of 500 b/d of oil equivalent, more than six times that of a traditional vertical Green River well.

Based on an estimated inventory of at least 1,800 locations at 160-acre spacing, Newfield’s net resource potential associated with the Uteland Butte formation is nearly 300 million boe. The company estimates average a gross EUR of 300,000 boe/well for $2.8 million/well. It plans four more wells in 2011 and more than 30 in 2012.

The Eocene Wasatch formation at 9,000-11,000 ft has produced more than 400 million boe in the southerly extension of giant Altamont-Bluebell field. In the last year, eight vertical wells have been drilled on Newfield’s acreage. Recent vertical wells averaged gross initial potential rates above 1,000 boe/d.

Newfield estimates a net Wasatch resource potential of more than 45 million boe. It has identified 380 locations on 320-acre spacing with EURs expected to average more than 260,000 boe. Completed well costs range from $1.2-3.3 million. The company believes future application of horizontal drilling and completion technology and increased drilling density could double the expected net resource potential.

The company expects to complete 25 more Wasatch wells this year and at least 50 in 2012.

Newfield has been developing the shallow Green River formation since entering the basin in 2004. The oil play is economic on at least 165,000 net acres, and 2,100 wells have been drilled.

More than 4,000 locations remain on 20-acre spacing in Monument Butte and on 40-acre spacing in the Central Basin. The company’s Monument Butte acreage is under US Bureau of Land Management jurisdiction. At the current drilling pace, the inventory will last more than 10 years.

Newfield has drilled more than 300 wells on the Central Basin acreage and, with further data, believes the area could be prospective for future waterflood and 20-acre development. Current resource estimates do not include the potential for 20-acre spacing or secondary recovery in the Central Basin.

Newfield estimates that the Green River formation has net remaining resource potential of 360 million boe, including developed and undeveloped waterflood potential only in Monument Butte. At yearend 2010, Newfield had proved reserves in the Green River formation of 140 million boe.

Gross production from the Uinta basin has grown to 22,000 b/d of oil from 7,000 b/d. Green River wells are being drilled and completed in 4-5 days for $930,000/well for gross EURs of 75,000 boe.

Since Newfield’s 2004 entry into Monument Butte field, expected recovery of oil in place has increased from 8% to 16% or more. Newfield expects to drill 300 wells in the shallow Green River in 2011 and 250-300 wells in 2012 as additional resources are allocated toward the new Uteland Butte and Wasatch plays.

Newfield is investing $75 million into field infrastructure projects in 2011, which will nearly match the company’s cumulative investment in infrastructure from 2004 to 2010. As development drilling has moved northeast and into deeper geologic horizons, the gas-oil ratio has increased. As a result, more compression and enhanced gathering infrastructure are required.

Once fully operational, the new facilities will allow for increased oil production from these areas. The company expects to invest $100 million into infrastructure projects in 2012 to accommodate long-term oil growth objectives from the basin.

Related Articles

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

Mubadala starts production at Nong Yao in Gulf of Thailand

06/29/2015 Mubadala Petroleum, Abu Dhabi, started production on June 17 from its Nong Yao oil field in the G11/48 concession of the southern Gulf of Thailand.

OGJ Newsletter


Security through change


At the start of this month the US Army published its "Energy Security & Sustainability (ES2) Strategy" report. 

Senate panel divided on bills to modify EPA's proposed ozone rules

06/26/2015 US Senate Environment and Public Works Committee members divided along party lines over the US Environmental Protection Agency's proposed National ...

Junex provides update on Galt oil property drilling

06/26/2015 Junex Inc., Quebec City, Que., said it is finalizing construction of the surface drilling pad for the Junex Galt No. 5 horizontal well that the com...

Lundin spuds three wells offshore Norway

06/24/2015 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, spudded three wells: its second Alta appraisal well in the Barents Sea, an appr...

WPX Energy adds to acreage in Gallup oil play

06/22/2015 WPX Energy Inc., Tulsa, has added to its San Juan Gallup acreage in New Mexico with the purchase of another 14,300 net acres from an undisclosed se...

YPFB Andina makes oil discovery in Bolivia’s Boqueron field

06/22/2015 YPFB Andina reported an oil discovery in Boqueron field in Bolivia’s Santa Cruz region. The Boqueron 4D well reached a total depth of 3,237 m and h...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected