Tuesday, July 19, 2016

Devon Reports Its Record Meramec Well In STACK -- Oklahoma -- July 19, 2016

For newbies, this is an important story. Although it's in the STACK play in Oklahoma, there are similarities to the Bakken. First the story, then some comments:
Devon Energy Corp.’s Alma spacing pilot in the overpressured oil window of the Oklahoma STACK play tested five wells per section across a single interval in the Mississippian Upper Meramec, delivering 30-day production rates averaging 1,400 boe/d/well, of which 60% was light oil.

In addition to the strong initial production rates, early flow-back results from the Alma pilot indicate minimal interference between wells, suggesting potential for tighter spacing in the overpressured oil window, Devon says.

The Alma wells were drilled with 5,000-ft laterals. They were brought online on 12/64-in. chokes, gradually increased to 20/64-in.

In the overpressured oil window in southwest Kingfisher County, the Pony Express 27-1H well, drilled with a 5,000-ft lateral, recorded a 30-day average rate of 2,100 boe/d, 70% oil.

Devon says oil productivity from the Pony Express is the highest of any Meramec well drilled to date in the play on a per-lateral-foot basis.

After the Alma test, Devon says it has two successful spacing pilots in the core of the Meramec oil window. Production from the two-well Born Free pilot continues to perform well, achieving a 90-day average rate of 1,500 boe/d/well, of which 60% is oil. The Born Free pilot wells were 400 ft apart and landed in two intervals in the Upper Meramec.

Devon’s next pilot is the Pump House test in southwest Kingfisher County. The Pump House is testing seven wells per section in a single interval in the Upper Meramec. Initial flow rates are expected in the third quarter.
Some comments:
  • I track the STACK here; many, many stories -- at that link; provides a nice time line of how this play was developed
  • CLR STACK: defined as base of the Woodford to the top of Meramac, approximately 700 to 1,200 feet thick at depths of 9,000 to 17,000 feet (similar to depths of the Bakken to the Red River wells in North Dakota)
  • note the percent oil: 60 - 70% compared to 90 - 96% oil in the Bakken
  • five wells across a section in the test in Oklahoma; in the Bakken, in the better sections, across one formation, let's say the middle Bakken, at least 6 wells, maybe more; in the poorer sections, probably a minimum of four wells across one formation such as the middle Bakken or one of the three Three Forks benches
  • knocking off about 500' at the edges of the section, leaves about 4,000 feet; divided by 5 wells = about 800 feet separation, I suppose. I think fracking is "effective" out to about 500 feet and it appears in the Bakken that's about the separation for the "halo effect" if it occurs
  • the Devon wells above were short lateral (5,000-ft laterals); the standard length in the Bakken is now long laterals, at about 9,000 feet, hitting two sections
  • 42,000 boe in the first month are great wells; the best areas in the Bakken right now seem to be running on average about 25,000 bbls oil in the first month, though we have seen much higher returns (I generally don't track boe in the Bakken)
  • it will be interesting to see the decline rates in STACK compared to the Bakken; I would assume "over-pressured" suggests a high decline rate -- similar to the Bakken
  • despite the oil glut, US shale industry continues to explore and produce
  • every one of these wells confirms the incredible opportunities on-shore, mid-continent USA
  • every one of these wells is another dagger in the heart of OPEC; Devon wouldn't be drilling these wells if they weren't going to make some money off this play evenutally

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