WPX Energy Uses Contract Analytics Software to Extract Detailed Offset Obligation Data

From extensive manual review to reliable data in just hours

  

 

 

 

COMPANY:

WPX is a $10 billion energy producer based in Tulsa, Oklahoma  employing approximately 600 people. Their core positions are in the Permian and Williston basins. WPX’s production is approximately 80% oil/NGL and 20% natural gas. They also have an emerging infrastructure portfolio in the Permian Basin, including a new 50/50 joint venture.
 

CHALLENGE:

Find a technology solution to automate and improve offset obligation tracking and further apply this technology to improve other processes.

SOLUTION:

ThoughtTrace’s Provision Insights gives WPX the ability to quickly and accurately extract detailed information about offset provisions and utilize the data to make strategic decisions.

 

THE CHALLENGE

WPX Energy is a progressive and ambitious energy company that encourages a culture of evolution and embracing the best tools available to help their team solve challenges. WPX leadership asks every department to be opportunistic – to take stock of every product and procedure with a charge to increase efficiencies with new technology. As an operator in a competitive basin, WPX is faced with the challenge of monitoring offset obligations for compliance with leases or other agreements that require offset wells or compensatory royalty. Time sensitivity and lack of control over development operations by other operators are important factors that can trigger multimillion-dollar contractual obligations based on their proximity to the leased premises. WPX had a desire to find or build the best solution to solve the arduous and manual task of locating offset obligations. At the time, Landmen were relying on permitting and spud dates in the area surrounding their leasehold position, and then manually reviewing outside operated activity. WPX wanted to feel confident that nothing was slipping through the cracks resulting in surprises, but the burdensome task of tracking offsets was a daunting challenge. 

 

"You guys are coming in and disrupting the industry – for its own benefit. ThoughtTrace is the leader in the space and the obvious choice."

Alex McPhail, Land Data Management Lead

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SOLUTION

Alex McPhail, Land Data Management Lead at WPX, was a bit skeptical after seeing other software demonstrations that didn't perform as promised. During the ThoughtTrace demo, WPX asked to upload a sample of their own leases of varying quality totally on the fly. They were incredibly impressed at ThoughtTrace’s out-of-the-box performance. Today, ThoughtTrace’s industry-specific contract analytics software gives WPX the ability to quickly and accurately extract detailed information about offset obligation requirements, offset distance, offset days, and compensatory royalty. Utilizing the provision data extracted by ThoughtTrace, Alex’s team is now able to make strategic decisions using a set of data that would have required extensive manual review in the past. A real benefit came in the realization that WPX could marry the data extracted from ThoughtTrace with proprietary geospatial data. ThoughtTrace software is serving up exactly what WPX needs to make informed decisions with their most important data. 
Not only did ThoughtTrace transform the way WPX handles offset provisions, WPX realized additional benefit thanks to Land Analyst, Kourtni Connor. Kourtni was new to the company and to the land department, but she had a background in automating processes. In seeking out various avenues for learning, she began using ThoughtTrace as part of the training for her new position. The Land Data Management Team now uses ThoughtTrace Academy and the application to train team members. As a result, they are up to speed and productive faster than ever before. In recruiting efforts, WPX is also noticing “ThoughtTrace Certified” on applicants’ resumes. This ThoughtTrace Academy certification is assisting in WPX recruiting and training efforts.  

 

"For me, it really clicked when we started to realize the power of combining the data extracted from ThoughtTrace with our proprietary geospatial data related to our land assets."

Alex McPhail, Land Data Management Lead

 

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RESULTS
  • Landmen are notified about offset activity in an automated and reliable manner.

  • WPX relays data to landmen that is tailored to the individual provisions within agreements that fall within the Landman’s area of responsibility.

  • Landmen at WPX realize that they will save a significant amount of time and certainly not lose jobs to technology.

  • WPX now combines the data extracted from ThoughtTrace Provision Insights with their proprietary geospatial data related to land assets.

 

"ThoughtTrace opened the door to numerous possibilities and opportunities for critical research projects, process improvements, and front-end automation"

Kourtni Connor, Land Analyst

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