A Texas-based energy company on Monday unveiled a new resource play in Oklahoma.
Newfield Exploration Co. calls its discovery in western Oklahoma's Anadarko Basin the Stack play because the play's “stacked” nature provides potential access to multiple production zones.
Newfield has more than 150,000 net acres leased in the new play, whose horizons include the Woodford and Meramec shales. Much of the activity is focused in Canadian, Kingfisher and Blaine counties.
“Our early results in the Stack play are very encouraging, with initial wells providing about 35 percent rates of return,” said Gary D. Packer, Newfield's chief operating officer.
Newfield officials said the new play is adjacent to the SCOOP, the oil-rich play introduced about a year ago by Oklahoma City-based Continental Resources. The SCOOP, which is short for South Central Oklahoma Oil Province, encompasses parts of several counties.
Newfield is at least the third company to announce a new discovery in Oklahoma over the past year, following Continental and Devon Energy Corp. Devon introduced the Woodford oil shale in northern Oklahoma in August.
Oil production in Oklahoma has nearly doubled since 2005, according to a Bernstein Research report last week. The state surpassed 300,0000 barrels a day early this year.
Packer said Newfield plans to ramp up activity in the area, with net production expected to hit 50,000 barrels of oil equivalent a day by the end of 2014.
“We are early in our learning curve in the Stack and history proves that we can lower costs and enhance returns as we move to development mode,” he said.
Packer said Newfield's Anadarko Basin production already has grown to about 25,000 barrels in less than two years.
“We will be increasing our planned activity levels in the Anadarko Basin, as this region has the potential to drive our corporate growth rates over the next decade,” he said.
Newfield has amassed more than 225,000 net acres in the area.
The company is adding an eighth operated rig in the basin.
At least two of those rigs will be dedicated to developing its acreage in the Stack.
Newfield has drilled seven wells in the new play so far, with initial production rates averaging 900 barrels of oil equivalent a day.
Oil accounts for about 40 percent of the recoverable reserves in the liquids-rich new play, the company said.