Extraction Oil & Gas Company Profile

Extraction Oil & Gas, Inc., formerly Extraction Oil & Gas, LLC, is an energy company
that is focused on the acquisition, development and production of oil, natural gas and
natural gas liquids reserves in the Rocky Mountains, primarily in the Wattenberg Field
of the Denver-Julesburg Basin of Colorado. It focuses on the development of the Codell
and Niobrara formations [1].
The Wattenberg Field, discovered in 1970, was historically a major gas field. It
produced over 4.0 trillion cubic feet of natural gas from the J Sand, Codell, and
Niobrara formations from nearly 20,000 wells. In 2009, operators began experimenting
with multi-stage horizontal completion techniques in the Niobrara Chalks. The early
results were significant and the development of the field immediately began to evolve
from vertical infill drilling to a horizontal resource play. Operators have now had
outstanding results in the Niobrara A, B and C benches as well as the Codell
Sandstone. Extraction is focused on the western portion of the field where both the
Niobrara and Codell are prospective [2].
The Company offers its exploration and production processes in various steps [2]:

Seismic: During this step, studies of the Earths subsurface are conducted to
increase the understanding of the local geology

Site preparation: Sites are selected in consideration of several factors: safety,

the surrounding environment, nearby property owners, and vehicle/pipeline
access. By drilling multiple wells at a single location, Extraction is able to reduce
the number of well-pad sites and in turn, reduce impact to the environment and
inconvenience to the community

Drilling the well: It takes approximately 8 to 10 days to drill a well. During this
process, multiple layers of protective steel casing are cemented in the ground to
ensure nothing can get into, or out of, the wellbore being drilled. The depth of
these wells is on average 1.5 miles below the earths surface and more than a
mile of impenetrable rock separates the oil and gas reservoirs from the potable
water table.

Completing the well: After the rig leaves, completion activities begin as soon as
the equipment arrives and may take between three to five days per well. Each
well is pressure tested before beginning completion activities to ensure the well
is structurally sound. During this process a mixture of sand, water and a small
proportion of other ingredients are pumped into the well to facilitate the release
oil and natural gas.

Monitoring the well: Once a well begins production, excess equipment is

removed. Only the wellheads, separators and storage tanks remain. Oil and
natural gas produced by the well travels via truck or pipeline to market. Any
water produced from the well will also be hauled or piped offsite for disposal.
During this phase, the wells are constantly monitored (24/7) through automated

equipment and if any issues arise, wells can be immediately and remotely shutin.

Reclaiming the site: At the end of the process, the well site is reduced to a much
smaller size and fenced. The surrounding area is reclaimed with native
vegetation and landscaped to camouflage the well site and help blend in with
surrounding vegetation

Recently, Extraction Oil & Gas has pulled off the biggest energy listing globally since
oil prices began to careen lower in 2014, as rising crude prices have sparked a sharp
turnaround in investor appetite for the industry. The Denver-based energy company,
which primarily operates in the Rocky Mountains, last night priced its initial public
offering at $19, above its initial range of $15-18. The 33.3m share sale raised $644m,
making it the largest IPO in the oil and gas industry globally since October 2014,
according to Dealogic, when energy price slide began to accelerate. Further
highlighting the renewed investor interest in the energy industry, Extractions shares
jumped 17.9 per cent to $22.4 in early trading on the Nasdaq stock market on
Wednesday 12 October, giving the company a market capitalization of $3.2bn [3].
The company is having a fluctuating trend during the current year. But if we compare
the trend with companies operating in the same sector, such as Synergy Resources
Corp, Bonanza Creek Energy Inc Noble Energy, Inc. , WPX Energy Inc, Triangle
Petroleum Corporation, we discover that Extraction Oil & Gas has a performance far
above average [4].
Bibliography
[1] www.reuters.com
[2] www.extractionog.com
[3] www.ft.com
[4] www.google.com/finance