WPX to divest from Marcellus Shale as profiting from gas proving more difficult

WPX Energy Inc. will divest from the Marcellus Shale with no plans to drill any new wells in Pennsylvania for the foreseeable future.The Tulsa-based company spun off from Williams Companies Inc. in 2011. Its new CEO, petroleum engineer Rick Muncrief, joined the company in May and took a hard look at WPX’s assets, spokeswoman Susan Oliver said.WPX will now focus on developing its acreage in the oil and natural gas liquids fields of Colorado, North Dakota and New Mexico, she said.“The decision was made to divest of the Marcellus asset because we get a better return with drilling for oil and natural gas liquids than the dry gas here,” she said. Its decision came as no surprise to Lou D’Amico, president and director of the Pennsylvania Independent Oil and Gas Association.“I think there are a number of companies that are looking at possibility of getting out of the dry gas portion of the Marcellus,” he said. “Right now with the current prices, there’s not a lot to justify additional drilling in the area.”The Marcellus Shale holds dry gas in Northeast Pennsylvania and the more profitable wet gas region of Southwest Pennsylvania and Northwest West Virginia.

via WPX to divest from Marcellus Shale as profiting from gas proving more difficult – News – The Times-Tribune.

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