Example Of CLR's Approach To Full-Field Development Using The Jersey Pad As An Example -- September 23, 2014

Take a look at these CLR wells, currently on confidential status with one rig-on-site. Below the graphic a very, very long note from a reader on "field development."

These are the Jersey wells which I posted back on March 26, 2014.

Note: one Jersey well was reported dry, most likely due to "early" casing problems:

• 27832, dry, CLR, Jersey 29-6H, Alkali Creek, a 4-section well; no production data, nothing yet in the file report that might explain what happened;

I hope Vern Whitten documents a photographic history of this mega-pad.

Here is the long note from a reader who discusses these Jersey wells:

At Continental's 3Q13 earnings call last November 7, the one where Harold Hamm laid out his "ears pinned back" program, Winston Bott - Continental's then President and COO, stated they intended to insure they get production online as quickly as possible and "don't inventory capital" as they move to larger and larger pads.

Bott indicated Continental would segregate these mega-pads into subareas to enable them to drill, complete and bring 7 or 8 wells online at a time.  He said they would sequentially go through the entire pad this way until it was completely online.  The implication is Continental will perform simultaneous operations whenever possible, as they develop a mega- pad.

This is the basis of my understanding of their full-field development approach.

Continental has 30 Jersey wells sited in the northeast quarter of section 6-153-93.  The main pad has three strings of 7, 7, and 8 wells running basically north-south in SENE - see the graphic above.  A separate pad with two strings of 3 and 5 wells is located close to the north section line.

Five wells on the main pad's furthest east string have been spud this year, and I believe drilling is finished on them.  These wells are:

• 27828, Jersey 25-6H, spud 7/11
• 27829, Jersey 26-6H2, spud 5/16
• 27830, Jersey 27-6H1, spud 5/16
• 27832, Jersey 29-6H, spud 3/13
• 28333, Jersey 29-6XH, spud 5/16

The 29-6H was the first Jersey well drilled, and as you recently noted the well came off the confidential list about a week ago, and was reported "dry" due to an apparent issue with the surface casing.  The Jersey 29-6XH is its replacement well. [Note the nomenclature.]

The Cyclone 35 rig has been reported on the main Jersey pad since March.  The Active Drilling Rig List has shown it on the Jersey 25-6H well since July 11, until today when the report shows the rig on the Jersey 1-6H well as of September 12.  This latter well is located on the smaller 8-well pad to the north.  I sense Continental may not bother to provide updated rig information to the NDIC.

Six of the wells on the smaller 8-well pad have recently been spud:

• 27997, Jersey 1-6H, spud 8/30
• 27996, Jersey 2-6H2, spud 8/29
• 27995, Jersey 3-6H1, spud 8/28
• 28002, Jersey 4-6H3, spud 9/1
• 28000, Jersey 6-6H2, spud 8/27
• 27999, Jersey 7-6H1, spud 8/29

Based on the directional information Continental provided last fall, it is likely they will complete the four wells already drilled on the main Jersey pad, as they concurrently proceed with drilling the six wells recently spud on the smaller pad.

The Jersey wells provide a somewhat unique challenge with the Lake and topology.  I believe this forced Continental  to utilize a separate pad to accommodate their operations at this venue, and that they will develop future mega-pads without building separate pads whenever possible.

For your reference I scanned and attached as a pdf Continental's Jersey Wells Array Plan prepared in January of this year, and a Vicinity Map of section 6-153-94, the location of the Jersey wells.  These documents were obtained from the Jersey 29-6H well file.  The eight wells on the separate, smaller pad are not listed on the Vicinity Map.  Also, Continental has since removed "Federal" wherever it appeared in the Jersey well names.

 Here are the two graphics the reader sent me; they should be self-explanatory: