Newfield Exploration has reported gross production results from its Woodford Shale play in the Arkoma basin of southeastern Oklahoma and expects an increase of approximately 20% from the asset for 2010.

The company said it has achieved gross operated production of 323MMcfe/d (184MMcfe/d net) from the its Woodford Shale play in the Arkoma basin of southeastern Oklahoma. The production in early 2010 is expected to continue to benefit from the ongoing completion of about 20 wells drilled in late 2009.

The recent increase in production from the Woodford Shale is being driven by results from recent super extended lateral (SXL) completions. SXL wells are defined as those having completed lateral lengths greater than 5,000ft.

Madison 1H-15W well had a lateral length of 9,983ft and was completed with 20 fracture stimulation stages. The well had initial production of 13.5MMcf/d with about 25% of the frac load recovered. Martin 1H-15E well had a lateral length of 9,405ft and was completed with 19 fracture stimulation stages. The well had initial production of 13.5MMcf/d with about 15% of the frac load recovered.

Newfield has five additional SXLs that have been drilled with completion operations pending. In 2009, the average lateral length completed was approximately 5,000ft. For 2010, Newfield estimates that its average lateral completion in the Woodford Shale will be 6,000ft – 7,000ft.

The company expects that these SXLs can be drilled and completed for approximately $7m – $8m gross (costs vary depending on lateral length and drilling depth).

Based on drilling to date and 3-D seismic data that covers the entirety of Newfield’s Woodford Shale acreage, the company estimates that approximately 25% of its Woodford Shale acreage will ultimately be developed with SXL completions. The company has applied to unitize a portion of its acreage to facilitate drilling more SXLs. Approval of the unit would increase this estimated percentage to approximately 33% of the acreage, or 55,000 net acres.

Newfield expects to run six to eight operated rigs in the Woodford Shale in 2010 and increase Woodford Shale production by approximately 20% over 2009 levels.