At the Analyst Day, Will Parker, Senior Exploration Geologist, said CLR published a list of six stealth plays in 2012. “Using our expertise, we have turned a stealth play into a reality,” he said.
Continental’s find is the Springer Shale, in the heart of the SCOOP play.
The company’s first discovery well, named the Wilkerson 1-20H, was completed in January 2013. The well returned an initial production (IP) rate of 2,038 boepd.
Continental responded by drilling two more wells in the Springer’s oil window. The Ball 1-19H, a stepout well drilled 25 miles to the southeast, served as a delineation test and returned an IP rate of 1,037 boepd. The Birt 1-13H was drilled near the Wilkerson and produced an IP rate of 793.
CLR opted to go stealth, keeping quiet on its find and making land acquisition its priority. Since 2012, the company has boosted its SCOOP acreage by 540% and now holds 195,000 net acres. A total of 11 wells have been completed to date, with the highest IP registering at 2,133 boepd. The 11 Springer wells, on average, are returning IPs of 700 boepd and a type curve of 940 MBOE – sufficient for a 100% rate of return at costs of $9.7 million per well. The Wilkerson has produced a cumulative total of 300 MBOE in its first 20 months of production.
Additional well results are coming: three are on flowback and two will be completed before the end of the month.
Since the Springer Shale is above the Woodford, all previously drilled Woodford wells provide a “free look” into the Springer, according to CLR management. Additionally, the company can list two formations as held-by-production with a single wellbore. “We got a two-for-one,” said Parker. “We bought one shale and got another one for free.”Bakken or Springer?
The company is adopting a wait-and-see approach on SCOOP expenditures, but do expect 25% of 2014 capital to be directed to the play. That number will increase to 30% by 2015.
The Bakken will command the majority of CLR’s budget in the near term.
However, competitor Newfield Exploration believes Oklahoma does have one benefit over the Bakken, and that is: “Location, Location, Location.” In an interview with the American Association of Petroleum Geologists, Steve Campbell, Newfield’s Vice President of Investor Relations, mentioned the state’s established procedures, favorable laws and extensive infrastructure, which offer “a distinct advantage.”More at the linked article. The Springer is linked at the sidebar at the right.