Anadarko Basin Activity Highlights: May 2015

The Anadarko Basin is a large, deep, two-stage Paleozoic basin that is petroleum rich, with Mississippian and older rocks are predominately carbonates, whereas Pennsylvanian and younger rocks are mostly shales with some sandstones. Although the sandstones comprise only a small part of the overall volume of basin rocks, they account for much of the petroleum production in the basin.

One of the largest operators in the basin, Newfield Exploration Co. (NFX), recently sold its Granite Wash assets while increasing its position in the Anadarko Basin to more than 250,000 net acres. The move reflects increased confidence in the potential of the Stack (and Scoop) areas targeting the Woodford and Meramac shales.

Meanwhile, Continental Resources Inc. (CLR) expanded production in the basin with wildly successful Spring Shale wells in the Scoop. Continental CEO Harold Hamm said that the Springer and other new Oklahoma oil plays will elevate the state as an oil producer and that Oklahoma is on track to surpass California and Alaska to become the nation’s third-largest oil producer.

According to Wood Mackenzie, Oklahoma oil production could double from where it is today by 2020 and then reach all-time highs right about the beginning of the next decade.

1. Mewbourne Oil Co. 03/27/15

A Marmaton producer by Mewbourne Oil flowed 437 barrels (bbl) of 44-degree-gravity oil with 1.79 million cubic feet (MMcf) of gas and 43 bbl of water per day. The Anadarko Basin venture, #433HM Posey Wilson, is in Section 43, Block 32, H&TC Survey, A-204 of Roberts County (RRC Dist. 10), Texas. The well was horizontally drilled to 12,712 feet to the south across the section and has a true vertical depth of 8,050 feet. It was fracture-stimulated between 8,488 and 12,621 feet. Flowing tubing pressure was at 250 psi when tested on an open choke. The well recovered about 5.4 Mbbl of oil before the initial potential test and has been assigned to the Pan-Petro Field Marmaton pool. Mewbourne is based in Tyler, Texas.

2. EOG Resources Inc. 03/24/15

A Lower Hoxbar discovery by EOG Resources (EOG) produced 492 bbl of 54-degree-gravity oil, 1.28 MMcf of gas and 418 bbl of water per day. The horizontal completion, #3-1H Thoma, is in Section 34-6n-6w of Grady County, Okla. Production at the Anadarko Basin well is from a fracture-stimulated interval between 11,322 and 16,331 feet. Drilled to 16,454 feet, 11,169 feet true vertical, the well bottomed in Section 3-5n-8w. It was tested on an open choke with a flowing tubing pressure of 209 psi and a shut-in tubing pressure of 3,800 psi. Houston-based EOG reports the Lower Hoxbar underlying the section contains four productive intervals between 10,950 and 11,300 feet.

3. ValPoint Operating LLC 03/23/15

A horizontal Mississippi Solid completion was reported by Amarillo, Texas-based ValPoint Operating in the Anadarko Basin. The #1H-22 Olive Lee is in Section 27-19n-16w of Dewey County, Okla. It flowed 8.56 MMcf of gas, 216 bbl of 57-degree-gravity condensate and 147 bbl of water per day. The venture was tested after acidizing and fracturing at 11,512-16,106 feet. The shut-in tubing pressure was 2,734 psi and the flowing tubing pressure was 2,308 psi when tested on a 25/64-in. choke. The absolute open flow was calculated at 35.1 MMcf of gas per day. It was drilled to 16,162 feet, 11,122-foot true vertical, and bottomed to the north in Section 22-19n-16w.

4. Newfield Exploration Co. 03/04/15

Tulsa-based Newfield Exploration completed two Anadarko Basin extended-reach horizontal wells in Stephens County., Okla. The #6H-14X Boles is in Section 27-2n-4w. According to IHS, it was tested flowing 6.93 MMcf of gas, 1.152 Mbbl of 53-degree-gravity condensate and 1.05 Mbbl of water per day. Production is from an acidized and fracture-stimulated Woodford lateral at 14,664-22,535 feet. Gauged on an open choke, the shut-in tubing pressure was 2,500 psi and the flowing tubing pressure was 1,793 psi. The 23,700-foot Royal West Field well has a north lateral extending to 22,690 feet, 14,050-foot true vertical, and bottomed in Section 14-2n-4w. Within three miles to the northeast is a horizontal completion that is producing from three formations in a two-mile long lateral. The #1H-25X Mary J flowed 478 bbl of oil, 605 Mcf of gas and 2.05 Mbbl of water per day from a site in Section 24-2n-4w. It had a projected depth of 23,632 feet. Production is from perforations in Woodford (13,260-19,903 feet); Sycamore, (19,968-20,037 feet); Woodford (20,102-20,775 feet) and Hunton (20,840-21,117 feet). Additional drilling details are not available.

5. Apache Corp. 02/13/15

A Cleveland Sand discovery by Apache (APA) initially flowed 6.98 MMcf of gas, 794 bbl of 54-degree-gravity condensate and 547 bbl of water. The Anadarko Basin completion, #4H Smith 8-15-26, is in Section 8-15n-26w of Roger Mills County, Okla. It was tested on a 19/64-in. choke following perforation and fracturing at 10,428-14,512 feet. The wellbore extends north to 14,721 feet, 10,053-foot true vertical. The Houston-based company has not released additional completion details.

6. Devon Energy Corp. 01/23/15

A Missourian horizontal completion was announced by Oklahoma City-based Devon Energy (DVN) in Wheeler County (RRC Dist. 10), Texas The Anadarko Basin venture, #1H Lee Hefley (AW), is in Elisha Montgomery Survey, A-622, and had an average flowrate of 2.1 Mbbl of oil equivalent per day (90% NGL) during its first 30 days online. The 14,909-foot Mills Ranch Field prospect was drilled south-southwestward and bottomed in George Turcotte Survey, A-627. It was completed in a Hogshooter Granite Wash interval at 10,100-14,623 feet that was fracture-stimulated. Additional information is not yet available.

7. Continental Resources Inc. 01/12/15

Results from four Anadarko Basin-Springer Shale producers were announced by Oklahoma City-based Continental Resources. In Section 27-7n-6w of Grady County, Okla., #1-27H AC Walters flowed 1.36 MMcf of gas, 746 bbl of oil and 180 bbl of water per day from Lower Springer Shale after fracturing. The 17,174-foot well has a true vertical depth of 12,327 feet and is producing from 12,688-17,054 feet. A southwest offset in Section 34-7n-6w, #1038 Nancy J, produced 1,815 barrel of oil equivalent per day (boe/d), 79% oil, in a 24-hour test (1,444 bbl of oil and 2.23 MMcf of gas). It was designed with a parallel north lateral that bottomed in Section 28-7n-6w. The #1-17H Schoof, Section 17-7n-6w, flowed 1,084 bbl of oil and 2.29 MMcf of gas per day. The well had a projected depth of 17,265 feet. The #1-21H Ince, in Section 28-3n-4w, Garvin County, produced 892 bbl of oil and 870 Mcf/d of gas. No additional information is available regarding the Nancy, Schoof and Ince wells. According to the company, all wells have an average lateral length of about 4,475 feet, and it estimates that the ultimate recovery for a 4,500-foot lateral well in the oil fairway of the play will be about 940 Mboe.