Emerging Plays Activity Highlights: July 2015

Larry Prado, Hart Energy's activity editor, summarizes some of the recent activity in the Burket Shale and Powder River Basin plays.

Burket Shale

According to IHS Inc., Consol Energy Inc. (CNX) plans to drill the first of up to 45 Marcellus Shale wells on Pittsburgh International Airport property in Allegheny County, Pa. Consol initially intends to drill 45 Marcellus Shale wells on the airport property, but the company also plans to explore other horizons, including Upper Devonian (Burket) and Utica Shale. Given the stacked pay potential on the approximately 9,000 acres held by Consol on airport land, the company estimates the acreage has a resource potential in excess of 1.6 trillion cubic feet equivalent (Tcfe) of gas.

1. Rex Energy Corp. - 01/20/15

Rex Energy (REXX) announced results from a Butler County, Pa., Marcellus Shale test, #1H Reno. The horizontal well was placed into sales and had an average five-day rate of 10.6 MMcfe/d with 38% liquids (assuming full ethane recovery). The total depth was not announced. The well is producing from a 4,150-foot lateral and was completed in 28 stages.

The Butler, Pa.-based company also announced results from its nearby, five-well Ferree pad. The company’s second test of a stacked Upper Devonian Burket/Marcellus was placed into sales in late 2014. The five wells on the pad were drilled with an average lateral length of 5,500 feet and completed with an average of 33 stages. The wells produced at an average five-day sales rate per well of 8.3 MMcfe/d with 55% liquids (assuming full ethane recovery).

Preliminary analysis does not indicate any communication between the Upper Devonian Burket and Marcellus Shale. The company continues to monitor the effects of the stacked laterals.

Powder River Basin

In eastern Wyoming’s Powder River Basin, RKI Exploration & Production LLC and Devon Energy Corp. (DVN) reported horizontal Frontier, Turner, Niobrara and Teapot oil discoveries in northern and northeastern Converse County.

IHS reported that northern Campbell County tracts in the Powder River Basin drew top bids at the March Wyoming state lease sale. The sale’s top per-acre bid of $345 was made by Azalea Oil Co. LLC for a 160-acre lease in northern Campbell County. It’s one mile north of Chan Field, which has produced 4.9 million bbl of oil, 5.7 billion cubic ft of gas and 2.9 million bbl of water from the Cretaceous Muddy sand since its discovery in 1968.

1. Devon Energy Corp. - 07/13/15

IHS reports that Devon Energy has completed a stepout from a southern Powder River Basin discovery in Campbell County, Wyo., that initially pumped 138 barrels (bbl) of oil and 1.2 Mbbl of load water per day. The #214672-3PH Flying Buffalo is in Section 21-46n-72w. Production is from a horizontal lateral in Cretaceous Parkman extending southward to 10,699 feet. The true vertical depth is 6,294 feet. It was tested following 12-stage fracture stimulation between 6,646 and 10,554 feet. Devon’s headquarters are in Oklahoma City.

2. RKI Exploration & Production LLC - 07/13/15

A Niobrara completion initially flowed 494 bbl of oil, 298 Mcf of gas and 556 bbl of water per day. The horizontal exploratory test by RKI is in the Converse County, Wyo., portion of the Powder River Basin. The #14-37-71-1H Shelden Draw Unit, in Section 14-37n-71w, is producing from a horizontal lateral extending southeastward to 16,867 feet. The venture bottomed in Section 24-37n-71w. It was tested on a 44/64-inch choke following 32-stage fracturing between 10,833 and 15,807 feet. Additional completion details are not available from the Oklahoma City-based company.

3. Helis Oil & Gas Co. - 07/14/15

An extended reach horizontal Frontier produced was announced by Helis in the Powder River Basin. The #12H-E-28 MBU Hornbuckle initially flowed 698 bbl of oil, 1.354 MMcf of gas and 1.18 Mbbl of water per day. Located in Section 28-37n-75w of Converse County, Wyo., the well is producing from a horizontal lateral extending from 12,362 feet northward to a measured total depth of 21,240 feet. It bottomed in Section 21-37n-75w and the true vertical depth is 12,198 feet. It was tested on a 28/64-inch choke following 17-stage fracturing between 12,453 and 20,367 feet. Helis is based in New Orleans.

4. Apache Corp. - 07/15/15

Apache (APA) announced that it plans to conduct an exploration program in the Converse County, Wyo., portion of the Powder River Basin. According to the Rocky Mountain Oil Journal, the Houston-based company will drill three Upper Cretaceous tests *#38-71-36-101 TR-PH State, #38-71-36-201 NB-H State, and #38-71-36-101 NB-H) from the same pad to evaluate Turner and Niobrara. The ventures will be drilled on 640-acre spacing with vertical depths ranging from 10,365 feet to 11,975 feet in Section-36-38n-71w. The last exploration conducted by Apache in the Rocky Mountain region was 2013 drilling program in Daniels County, Mont., along the western flank of the Williston Basin. No significant shows were encountered, and the company plugged all six exploratory wildcats.

Contact the author, Larry Prado, at lprado@hartenergy.com.