G2X Energy, through its wholly owned subsidiary TRDC LLC, has purchased a 49% working interest in WPX Energy’s (NYSE: WPX) Trail Ridge Project located in the Piceance Basin of Colorado approximately 175 miles west of Denver. WPX will retain a 51% working interest in the property and will be the operator of the Trail Ridge Project.
Through this partnership with WPX, G2X has acquired a 49% working interest in 102 wells producing approximately 7,700 million cubic feet per day, 20 barrels of oil per day and 200 barrels of natural gas liquids per day. In addition, G2X has begun a drilling program that will encompass up to 1,362 wells over a 16-year period. This program outlines eight wells for development in 2014, 25 wells in 2015, 50 wells in 2016 and 100 wells per year in 2017 and beyond.
G2X will invest $40 million to purchase the proved and developed producing reserves and contribute an additional $170 million in carried capital over the first 400 wells of the drilling program. All remaining drilling costs will represent G2X’s 49% working interest. This working interest purchase represents approximately 26 billion cubic feet equivalent of proved developed producing reserves. G2X estimates that the drilling program will include 230 billion cubic feet equivalent of net proved undeveloped reserves and an additional 620 billion cubic feet equivalent of net probable reserves.