Newspaper article THE JOURNAL RECORD

Marathon Oil to Spend $200 Million in Oklahoma

Newspaper article THE JOURNAL RECORD

Marathon Oil to Spend $200 Million in Oklahoma

Article excerpt

HOUSTON (JR) - Marathon Oil's $1.4 billion 2016 capital program includes $200 million in the Oklahoma resource basins.

The allocation in the Oklahoma resource basins will support 20 to 22 company-operated SCOOP and STACK wells to sales.

The Oklahoma program includes $195 million for drilling and completions, including an estimated $55 million for outside- operated activity. An average of two rigs in 2016 will focus primarily on lease retention in the STACK and delineation of the Meramec.

Houston-based Marathon expects to be approximately 70 percent held by production in the STACK by year-end, with the SCOOP already more than 90 percent held by production.

In the SCOOP Springer, Marathon Oil plans to complete its second company-operated well in the first quarter and drill another well later in the year.

The $1.4 billion capital spending budget for 2015 is down 50 percent from 2015 and down 75 percent from 2014.

"Through this cycle of sustained low oil prices and market volatility, Marathon Oil will continue to focus on balance sheet protection and operational flexibility," Marathon Oil President and CEO Lee Tillman said. "This year's capital program is designed to preserve the efficiencies we've captured in the Eagle Ford, continue delineating Oklahoma for future growth, and complete profitable long- cycle projects.

Marathon is allocating $1.15 billion to activity in North America with the majority focused on the company's three U.S. resource plays where it plans to bring 157 to 169 gross company-operated wells to sales.

Marathon allocated $600 million in capital spending for the Eagle Ford, including $520 million for drilling and completions. The company expects to bring 124 to 132 gross company-operated wells to sales in the Eagle Ford with an average of five rigs in 2016. This compares to an average of 11 rigs in 2015 with 276 gross company- operated wells to sales. The 2016 drilling program will continue focusing on co-development of the Lower and Upper Eagle Ford horizons as well as the Austin Chalk in the core of the play.

In the Bakken, Marathon plans to spend just under $200 million, with $150 million allocated for drilling and completions, including an estimated $75 million for outside-operated activity. …

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