Newfield lifts Utah Monument Butte flow

March 22, 2005
Newfield Exploration Co., Houston, is pressing development of giant Monument Butte oil and gas field in the northern Uinta basin, where it estimates more than 1 billion bbl of oil in place.

By OGJ editors
HOUSTON, Mar. 22 -- Newfield Exploration Co., Houston, is pressing development of giant Monument Butte oil and gas field in the northern Uinta basin, where it estimates more than 1 billion bbl of oil in place.

While trying to maximize recovery of low-pour-point "black wax" oil from the Eocene Lower Green River formation at 5,000-6,500 ft, Newfield also plans to test the potential of deeper gas formations.

Newfield's working interest averages 80% at Monument Butte, acquired in its $575 million purchase of private Inland Resources Inc., Denver, in August 2004.

Newfield, which used the purchase to establish a Rocky Mountain core area, then estimated that it might expand production for 10 years by drilling hundreds of wells in the underdeveloped field. It estimated it had acquired about 45 million bbl of proved oil reserves and 60 million of probable oil reserves.

The 2005 plan calls for drilling 175 wells, compared with 147 in 2004 including 61 post-acquisition.

So far, reserves are 16% higher than at closing and production averages 9,100 b/d, up 12%. The 2005 exit rate should be 10,500 b/d, Newfield told analysts earlier this month.

Monument Butte, discovered in 1964, covers 170 sq miles in Duchesne County. The field is an east-west trending series of more than a dozen waterfloods and interspersed undeveloped areas.