WPX Energy Inc., Tulsa, will exit the San Juan basin with an agreement to sell its Gallup oil play holdings for $700 million to an undisclosed buyer who will also assume the associated transportation commitments.WPX Energy Inc., Tulsa, will exit the San Juan basin with an agreement to sell its Gallup oil play holdings for $700 million to an undisclosed buyer who will also assume the associated transportation commitments.

Gallup oil production averaged 10,800 b/d in third-quarter 2017. Overall, the Gallup position represented less than 5% of WPX’s gross undeveloped locations. With the sale, WPX is forecasting 75,000-80,000 b/d of oil and 117,000-126,000 boe/d of production in 2018.

WPX previously divested natural gas assets in the San Juan basin for $175 million and a gathering system in the basin for $309 million.

Capital previously earmarked for the assets will be reallocated to the company’s two remaining core positions in the Delaware (Permian) and Williston basins. WPX has 100,000 net acres in the Delaware basin, with the majority in Loving County, Tex., and Eddy County, NM. The company’s operations in the Willison basin span 85,000 net acres on the Fort Berthold Indian Reservation.

Closing of the Gallup oil play holdings is expected in this quarter.

Source: News