Newfield Exploration is bumping up its drilling budget after adding another 25,000 acres in a pair of stacked tight-oil plays in Oklahoma, as the US independent expects yearly production to exceed its initial estimates.
Over the past year, Newfield has undertaken an organic leasing programme in the Anadarko basin to increase its position in the Scoop and Stack tight-oil plays, where operators are chasing an oil window of the Woodford shale as well as other tight liquids-prone formations.
The company has added about 25,000 acres year-to-date and now holds around 250,000 acres between the two plays.
To get to work on the additional leases, Newfield is increasing its 2014 capital budget by $100 million to $1.7 billion.
With the additional investment, Newfield now expects to produce 46.5 million to 48.5 million barrels of oil equivalent in 2014, up from an estimate of 44 million to 48 million from earlier this year.
"We are executing extremely well across the company today and this momentum is allowing us to increase the production and cash flow growth in our three-year plan," Newfield chief executive Lee Boothby said.
"Our outlook continues to improve and the changes we expect to make will be positive for our oil growth and cash flow projections and will improve our debt-adjusted growth metrics."