$169 million sale should be finalized by year's end, WPX spokesman says
FARMINGTON — LOGOS Resources LLC and WPX Energy are in the process of finalizing the sale of 134,000 acres of WPX’s assets in the San Juan Basin.
Jay Paul McWilliams, president of Farmington-based LOGOS Resources, said the sale includes approximately 900 wells, and though there are a few oil wells in the acquisition, the majority are natural gas wells.
“We couldn’t be more excited,” McWilliams said, adding “our well count is going to be going from approximately 550 to, you know, 1,400-ish wells, which is a big, big leap.”
WPX spokesman Kelly Swan said the $169 million sale should be closed by the end of the month.
Swan said the Tulsa, Oklahoma-based company has been shifting its focus to oil production since the company split off from Williams, a natural gas processing and transporting company, in 2012. WPX still has oil assets in the southern part of the San Juan Basin that it will continue to tap in 2018.
“This year, our local spend was about $150 million on new oil wells in San Juan Basin,” Swan said. “That will be less next year. In fact, we’re in the process of winding down our 2017 drilling program. We would love to have probably one rig operating at some point in the basin next year. Whether that’s spring or mid-year, that’s yet to be determined.”
McWilliams said the acquisition will increase LOGOS’ San Juan Basin assets to approximately 280,000 acres and that the local company will likely take on some of WPX’s staff from its Aztec office.
“We find it’s a really nice mix to take the really experienced guys that have spent decades in the industry and mixing them with the younger folks that can learn and absorb and that really want to grow and develop in their careers,” McWilliams said.
Swan said there are approximately 20 employees at its Aztec office who primarily worked with WPX’s natural gas assets. Swan said they are available if LOGOS chooses to hire them.
LOGOS will focus on bringing technology to its new San Juan Basin assets to rejuvenate local production and the economy, McWilliams said. LOGOS will likely be hiring for administrative jobs, as well as operating and field jobs.
“(WPX has) done some great things, however this asset hasn’t been something that’s a major focal point for them over the last few years,” McWilliams said. “It’s going to be the most important thing to us as a company so we’ll be putting more capital to work (and) we’ll be putting more money there, which means more jobs. … Certainly, there’s a great talent pool of folks here, and I think this will hopefully provide additional jobs in the community.”
More information about LOGOS’ acquisition of WPX’s San Juan Basin assets will be found in the January edition of The Daily Times' Energy magazine.
Megan Petersen covers business and education for The Daily Times. Reach her at 505-564-4621 or email@example.com.