Oil & Gas Journal is reporting that Newfield continues to shift its focus from Texas to STACK.
Newfield Exploration Co., Houston, has agreed to divest all of its assets in Texas in separate deals with Protege LLC, Tulsa, and an undisclosed buyer for combined net aftertax proceeds of $390 million.
The two deals are expected to close in the third quarter.
Protege is acquiring Newfield’s Eagle Ford shale assets, while the undisclosed buyer is acquiring Newfield’s conventional natural gas assets in South Texas.
Current net production from the combined assets is 12,700 boe/d, of which 35% is oil.
Newfield has increased its 2016 capital budget to $700-750 million, reflecting $40 million for two STACK pilots, and $50 million for additional drilling on existing assets and assets associated with the recently closed acquisition of STACK properties from Chesapeake Energy Corp.
The deal expanded Newfield’s STACK footprint to 265,000 net acres.
Newfield has lifted its average type curve in STACK by 15% to 1.1 million boe after drilling more than 100 wells to date.
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