Dominion Black Warrior Basin Inc. has made a remote new-field discovery in northern St. Clair County, Alabama. The find is in the Valley and Ridge province of the Cotton State, east of the Black Warrior Basin. The remarkable discovery is the first production in the county, and it's also from the Cambrian Conasauga shale, a much older interval than the Mississippian Floyd shale that has grabbed most of the industry's attention to date in the region.

Currently, Dominion is applying with the Alabama Oil & Gas Board for 320-acre spacing across a 40-square-mile area. The boundaries of its proposed Big Canoe Creek Field lie between the Big Canoe Valley and Helena faults. In this tectonically complex area, which is rife with low-angle thrust faults, the Conasauga shale section is repeated and reaches thousands of feet thick. Indeed, in the heart of the proposed field, an old Amoco well, #1 J.J. Young 34-2, was still in Conasauga shale at its total depth of 9,915 feet.

Dominion's first producer in the emerging area, also the first producing well in St. Clair County, was completed in 2005. The 5,970-foot #1 Dawson 34-3, in Section 34-13s-4e, initially flowed 47,500 cubic feet per day from an openhole interval between 2,170-5,892 feet. After stimulation, rates improved to 233,000 cubic feet per day. Production in June 2006 was 2.76 million cubic feet, according to the state.

Last year, Dominion added a second producer, #6 Newman 27-7, in Section 27 of the same township. That well flowed 64,000 cubic feet per day from an openhole interval at 1,939-7,039 feet total depth. During June 2006, it made 2.36 million cubic feet. The company has tied its new wells into a Southern Natural Gas line that runs up the valley through its properties.

Between the two producers, Dominion drilled #3 Andrews 27-14, also in Section 27, to 3,412 feet. Field rumors are that the Andrews blew out during drilling and flowed gas at extremely high rates. Dominion has not confirmed those reports.

Dominion completed another well, #8 Land Investments 30-16, in August 2006 some three miles west of #6 Newman in Section 30. Initial daily potential was 50,000 cubic feet from an openhole interval between 1,900 and 3,450 feet total depth. That well is waiting on pipeline connection. Another test awaiting hook-up is #14 Beason 33-06 in Section 33. Field rumors, again unconfirmed by Dominion, are that this 7,000-foot well, which was stimulated with a CO2 foam frac, has flowed at rates of some 1.2 million cubic feet per day.

Other Dominion tests in progress-all in Township 13s-4e-include #2A Dawson 33-09 in Section 33; #5 West 35-8 in Section 35; and #58 Burgess 28-14 and #30 Burgess 28-09, both in Section 28. These are waiting on rigs or deep drilling units.

Another well, #9 Sloss et al. 35-13 in Section 35, had a fish in the hole and was waiting on orders at press time. The #26 Oakes E23-11 in Section 23 was being drilled and #7 Bjornson 32-16, in Section 32-13s-5e, had reached a total depth of 6,606 feet, and was being stimulated, the state says.

From a drilling perspective, the formation has proven recalcitrant: lost circulation zones, swelling clays and wellbore drift have all been issues.

Indeed, the drift problem is so pronounced that all of Dominion's wellbore tracks, except the Beason, have exceeded regular spacing for 40-acre units.

Birmingham, Alabama-based Energen Resources Corp. has also drilled a wildcat in the Conasauga area, about 10 miles southwest of Dominion's activity. Total depth at #101 Williams 29-12, in Section 29-14s-3e, St. Clair County, is 4,840 feet. It was last reported waiting on completion tools, with 4.5-inch casing set to 3,522 feet, according to IHS Inc.

Chesapeake Energy Corp. recently partnered with Energen in Alabama's evolving shale plays. Oklahoma City-based Chesapeake bought a 50% interest in Energen's 200,000-net-acre position in its Alabama acreage for $75 million. Chesapeake will also pay the first $15 million of Energen's future drilling costs. The companies have formed a statewide area of mutual interest, and have a 50/50 split on new leases, development and operations.

At present, the companies have grown their combined holdings to 252,000 acres in Alabama and tentatively plan to drill a couple of shale wells prior to year-end.

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