NFX to focus more attention on STACK
Posted: Wed Aug 10, 2016 9:22 am
On August 3, 2016, Newfield Exploration (ticker: NFX) announced the signing of two separate purchase and sale agreements to divest all of its assets in the Maverick Basin of Texas for $390 million.
The transaction is expected to close in the third quarter of 2016 and covers 35,000 acres of unconventional and conventional assets in Dimmit and Atascosa counties.
EnCap-backed Protégé LLC signed the agreement to acquire a package of Eagle Ford assets while an undisclosed party signed the sales agreement for the South Texas conventional natural gas assets.
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NFX intends to use the proceeds of the transactions to replenish its cash balance and ready itself to further increase its positions in the Anadarko Basin’s highly economic STACK play. The company announced capex increases in the STACK as well as improving type curves and successful downspacing pilots earlier this week.
Chairman Lee K. Boothy elaborated on the company’s success in the STACK in an earnings release.
“Today, we increased our average type curve in STACK by 15% to approximately 1.1 MMBOE gross. This increase is backed by the drilling of more than 100 wells to date – the largest sample set in the industry. Our well results continue to improve as we optimize our completions and look for innovative ways to enhance returns in our upcoming full-field development campaign.”
“We recently closed on our previously announced STACK acquisition and have allocated additional capital to these assets in the second half of this year,” continued Boothy. We remain excited about STACK and the play’s potential to drive our growth in production and reserves for years to come.”
The transaction is expected to close in the third quarter of 2016 and covers 35,000 acres of unconventional and conventional assets in Dimmit and Atascosa counties.
EnCap-backed Protégé LLC signed the agreement to acquire a package of Eagle Ford assets while an undisclosed party signed the sales agreement for the South Texas conventional natural gas assets.
Read:
http://www.oilandgas360.com/newfield-ex ... S_Campaign
NFX intends to use the proceeds of the transactions to replenish its cash balance and ready itself to further increase its positions in the Anadarko Basin’s highly economic STACK play. The company announced capex increases in the STACK as well as improving type curves and successful downspacing pilots earlier this week.
Chairman Lee K. Boothy elaborated on the company’s success in the STACK in an earnings release.
“Today, we increased our average type curve in STACK by 15% to approximately 1.1 MMBOE gross. This increase is backed by the drilling of more than 100 wells to date – the largest sample set in the industry. Our well results continue to improve as we optimize our completions and look for innovative ways to enhance returns in our upcoming full-field development campaign.”
“We recently closed on our previously announced STACK acquisition and have allocated additional capital to these assets in the second half of this year,” continued Boothy. We remain excited about STACK and the play’s potential to drive our growth in production and reserves for years to come.”