Delaware Basin Activity Highlights: September 2016

Activity in the Delaware Basin has been heating up this year and a recent discovery is only adding fuel to the fire.

On Sept. 7, Apache Corp. (NYSE: APA) rocked the industry by announcing the discovery of a new resource play in the southern Delaware Basin dubbed Alpine High.

The Houston-based company spent two years of geologic and geophysical work, acreage accumulation, strategic testing and delineation drilling, primarily in southern Reeves County, Texas (RRC Dist. 8), according to IHS.

RELATED: Apache Uncovers Alpine High’s Potential

Apache estimates that there is 75 trillion cubic feet (Tcf) of rich gas and 3 billion barrels (Bbbl) of oil in place on its acreage position in the Delaware in the Barnett Shale and Woodford formations alone. The company added that significant oil potential still exists in the basin in the shallower Bone Spring, Wolfcamp and Pennsylvanian.

The Barnett/Woodford pays are in the wet gas window in the Delaware and expected to deliver a combination of rich gas and oil. Apache already drilled 19 tests across in its acreage in Reeves and neighboring Pecos County.

Alpine High has 4,000 feet to 5,000 feet of stacked-pay in Bone Spring, Wolfcamp, Pennsylvanian, Barnett and Woodford, according to Apache. The company also identified at least 2,000 and possibly more than 3,000 future drilling locations in the Barnett/Woodford alone.

The company has added several locations to its drilling program in southern Reeves:

• #1H and #3H Alta will be in offsetting surface locations in Section 40, Block 13, H&GN RR Co Survey, A-4574; and
• To the southwest, permits are filed for #1H, # 2H, #3H and #5H Cherokee State in Section 16, Block 57, T7S, T&P Survey, A-2699.

Each venture has planned depths of about 16,000 feet

1. Apache: 9/21/16

A new Delaware Basin resource play called Alpine High has been announced by Apache.

Estimates of the Reeves (RRC Dist. 8) resource is 75 Tcf of rich gas and 3 Bbbl of oil in place on its acreage position in Barnett Shale and Woodford alone, with significant oil potential in the shallower Bone Spring, Wolfcamp and Pennsylvanian.

Apache released 24-hour IP results and estimated NGL production on nine Alpine High wells that include six horizontal Woodford producers:

• #1H Spanish Trail, 6.484 MMcf of gas, 108 bbl of oil and 1.024 Mbbl/d of NGL;
• #1H Weissmies, 7.122 MMcf of gas, 281 bbl of oil and 992 bbl/d of NGL;
• #1H Ortler, 1.752 MMcf of gas, 16 bbl of oil per day and 246 bbl/d of NGL;
• #1H Mont Blanc, 17.068 MMcf of gas, 24 bbl of oil per day and 1.51 Mbbl/d of NGL;
• #1H Cheyenne, 6.517 MMcf of gas, 227 bbl of oil and 1,033 bbl/d of NGL; and
• #1H Fox State, 6.744 MMcf of gas, 72 bbl of oil and 216 bbl/d of NGL per day.

2. Devon: 9/16/16

A horizontal Wolfcamp discovery was announced by Oklahoma City-based Devon Energy Corp. (NYSE: DVN) in Jabalina Southwest Field in Lea County, N.M.

The #15H Roja Arena Federal Unit is flowing 346 bbl of oil, 539 Mcf of gas and 1.109 Mbbl of water per day from acidized and fracture-stimulated perforations at 13,079 feet to 19,552 feet. The Delaware Basin well was drilled to 19,600 feet, 12,746 feet true vertical, and is in Section 27-26s-35e. The lateral bottomed about one mile to the south-southeast in irregular Section 34.

A shallower offsetting Delaware completion runs parallel to #15H Roja Arena Federal Unit at #16H Roja Arena Federal Unit. It pumped 683 bbl of oil, 933 Mcf of gas and 2.699 Mbbl of water per day from perforations at 9,280 feet to 15,719 feet. The total depth is 15,883 feet, 9,031 feet true vertical.

3. Jagged Peak Energy: 8/26/16

Jagged Peak Energy LLC, based in Denver, has completed an extended-lateral Wolfcamp well in the Ward County, Texas (RRC Dist. 8), portion of Phantom Field.

The Delaware Basin venture, #1H UTL 2635-17, is flowing 1.268 Mbbl of 44.3-degree-gravity crude, 1.22 MMcf of gas and 2.933 Mbbl of water per day. Production at the 20,783-foot well is from acid- and fracture-stimulated perforations at 11,603 feet to 20,783 feet.

The well was drilled in Section 26, Block 17, University Lands Survey, and the horizontal leg bottomed about a mile to the west-southwest in Section 35. Tested on a 33/64-inch choke, the flowing tubing pressure was 1,630 pounds per square inch (psi).

4. Concho: 8/25/16

COG Operating Inc., a subsidiary of Midland, Texas-based Concho Resources Inc. (NYSE: CXO), has completed a horizontal Bone Spring producer on the eastern flank of New Mexico’s Mesa Verde Field in the Delaware Basin.

The Lea County discovery, #3H Mastiff Federal, was tested flowing 725 bbl of oil, 1.027 MMcf of gas and 2.515 Mbbl of water per day. The venture was drilled to 15,020 feet, 10,652 feet true vertical, out of a 12,600-foot pilot hole in Section 4-24s-32e.

Acid- and fracture-stimulated perforations are at 10,757 feet to 14,920 feet. Tested on an unreported choke size, the flowing tubing pressure was 380 psi. The lateral bottomed about a mile to the south.

5. Mewbourne Oil Co. 8/24/16

Mewbourne Oil Co. Inc., based in Tyler, Texas, completed a horizontal Second Bone Spring discovery in the Delaware Basin.

Located in Section 13-26n-29e of Eddy County, N.M., #1H Fuller 13/24 B2LM Federal Com was tested flowing 528 bbl of 57-degree-gravity oil, 1.866 MMcf of gas and 2.810 Mbbl of water per day.

Production is from fracture-treated perforations at 9,104 feet to 16,135 feet. Drilled to 16,158 feet, the true vertical depth is 8,880 feet, and the lateral bottomed to the south in Section 24.

Mewbourne tested the well on a 34/64-inch choke, and the flowing tubing pressure was 1,300 psi.

6. Endurance Resources LLC 8/11/16

Midland, Texas-based Endurance Resources LLC completed two wells in Section 35-25s-35e of Lea County, N.M.

A horizontal Brushy Canyon oil discovery in the Delaware Basin, #1H Moonlight Buttress 26, was tested flowing 544 bbl of crude, 501 Mcf of gas and 3.19 Mbbl of water per day from acid- and fracture-treated perforations at 9,300 feet to 13,521 feet.

Located in Section 26-25s-35e, the Delaware oil producer was drilled to 13,634 feet with a lateral that bottomed about a mile to the north a true vertical depth of 8,802 feet. The well was tested on a 48/64-inch choke and the flowing tubing pressure was 270 psi.

The Moonlight well was originally permitted by Chevron Corp. (NYSE: CVX) as a deeper Bone Spring test, but those plans were amended after Endurance assumed operations.

From an offsetting surface location, the south-trending #1H Coronado 35 Federal in flowed 1.166 Mbbl of 46-degree-gravity oil, 967 Mcf of gas and 2.175 Mbbl of water per day through acidized and fractured perforations Bone Spring perforations at 12,497 feet 16,806 feet.

The Coronado well was horizontally drilled to 16,935 feet out of a 12,370-foot pilot hole. The true vertical depth is 12,274 feet.

7. Concho: 7/21/16

Concho’s COG Operating announced completion results from an extended-lateral Bone Spring well in the Delaware Basin in Eddy County, N.M.

The #2H Cali Roll 24 Federal was tested flowing 331 bbl of oil, 908 Mcf of gas and 2.438 Mbbl of water per day from acid- and fracture-treated perforations at 8,176 feet to 17,615 feet. The well was drilled to 17,746 feet in Section 24-26s-25e to a true vertical depth of 8,013 feet.

The venture bottomed about two miles to the south. It was tested on an unreported choke size with a flowing tubing pressure of 420 psi. There had been no previous Wolfcamp production in the immediate vicinity.

Larry Prado, activity editor, can be reached at lprado@hartenergy.com.