Saturday, November 5, 2011

Woodford Shale - Exxon Mobil (XOM)

November 5, 2011 - Exxon Mobile (XOM) is now heavily involved in the Woodford Shale as of late 2011. The Woodford Shale and Cana Woodford Shale have been explored by many companies for oil in 2011. Oklahoma residents have been signing away mineral rights leases at a record pace. Exxon Mobile (XOM) had this to say about the Woodford Formation.

"We are also involved in multiple emerging liquids-rich shale plays, the most active of which is the Woodford shale in the southern Oklahoma Ardmore Basin area. To date, we have amassed more than 150,000 net acres in this play through an aggressive leasing and acquisitions program. This leadership position has been built at an attractive cost. As we acquired resources for approximately $0.30 per 1,000 cubic feet equivalent and added the leasehold for under $600 per acre.Our activity in the Woodford Ardmore play has ramped up significantly in 2011, with our operated rig count increasing from 3 to 7 rigs and gross operated production more than tripling since year-end 2010.

In our core development area, peak 7-day gross production rates have averaged 325 barrels per day of crude oil and 3.7 million cubic feet per day of natural gas, with a rich 1,275 BTU gas also yielding significant natural gas liquids, providing an average liquids rate per well of over 750 barrels per day and 2.9 million cubic feet per day of sales gas. We are continuing to ramp up drilling activity and are progressing both marketing and infrastructure plans for the play.