American Oil and Gas Reporter - June 2015 - 50

the Lower Spraberry, Wolfcamp B and
Middle Spraberry utilizing average laterals of 7,400 feet, and had average 30-day
initial production rates of 1,143 barrels of
oil equivalent a day, after cleanup.
The Cross Bar Ranch 3025, a two-well
Lower and Middle Spraberry pad, had average laterals of 9,400 feet and average 30day IPs of 1,128 boe/d, Arrott adds.
The Spanish Trail Section 47 well
had the longest lateral in RSP history:
11,400 feet on a Wolfcamp A well. Arrott
says the company is simultaneously developing four Wolfcamp A and B wells, followed by four Lower Spraberry wells as
a part of the project.
RSP Permian has begun completion operations on eight of the remaining 10 wells
drilled on its Johnson Ranch Wolfcamp
A/B pilot project in Martin County across
a 960-acre production unit, he says,
adding, "Late in 2015 or early in 2016, we
expect to begin a Lower Spraberry pilot
in the same section on the Johnson Ranch,
eventually drilling 10 wells across the section."
RSP is installing pits, tank batteries and
water infrastructure in preparation for
horizontal drilling to start in the third quarter on what will be four to six new wells
in a new operating area acquired last year
in Glasscock County, he adds.
The outcomes continue to drive strong
production growth, according to Arrott.
RSP Permian exited the first quarter producing 17,700 boe/d, or 11 percent above
its first-quarter average. Rig contract
flexibility and reduced service costs are
helping maintain a drilling and completion
budget of $400 million-$450 million this

year, Arrott says.
"I have been in the business for almost
35 years, and never have I had such good
and consistent wells," he enthuses.
The RSP Permian co-founder and Permian Basin native adds, "The consistency has been most impressive. We certainly have seen good wells in the Permian,
but I have never had a continual repeat of
such good wells. It is amazing what was
sitting under our noses all this time."

Maximize Value
Throughout the basin, Apache Corp. is
focusing on high-grading prospects and
maximizing value across 3.2 million gross
acres that already include 14,500 producing wells in 155 fields, including 47 waterfloods and seven carbon dioxide floods.
"The effort that has been put forth in
the Permian Basin the last three to four
years to grow our acreage position has
been pretty remarkable," assesses Faron
Thibodeaux, Apache's Permian region
vice president. "We are here for the long
haul, and it's about drilling those prospects
or those areas that maximize value."
Apache's production throughout the
basin has grown about 25 percent annually, to a record 168,700 boe/d at the end of
the fourth quarter, with the company
adding about 700 wells a year over the past
four to five years, Thibodeaux points out.
With 15 rigs operating in the first
quarter, Apache had drilled 56 wells as of
mid-May-34 horizontals and 22 verticals-as it continued to test targeted zones
and work to optimize well-orientation and
casing designs, Thibodeaux says.
"We are testing the most effective

Apache Corporation is focusing on high-grading prospects and maximizing value across
its 3.2 million gross acres in the Permian Basin, which include 14,500 producing wells
in 155 fields, including 47 waterfloods and seven carbon dioxide floods. Permian Region Vice President Faron Thibodeaux says Apache is focused on the long term, drilling
those prospects and areas that maximize value.

50 THE AMERICAN OIL & GAS REPORTER

combinations for various operational variables in the Permian region, including wellto-well spacing, frac-stage spacing, proppant loading, and more environmentally benign fluid additives," he enumerates.
In the Delaware Basin, Apache is
drilling primarily in the Pecos Bend and
Waha, Tx., areas, targeting the Wolfcamp
as well as the Bone Springs. In Pecos
Bend, the Condor 205H and 206H wells
produced 30-day average rates of 1,778
and 1,412 boe/d, respectively. Lateral
lengths were 3,349 and 3,582 feet, respectively. "These wells are tracking significantly higher than Apache's Delaware
Basin type-curve," Thibodeaux observes.
In the Southern Midland Basin, Apache
is utilizing short-lateral wells at its Powell-Miller Field targeting the Wolfcamp.
During the first quarter, the Miller 36
5HM, Miller 36 6HU, and CC 42 1HM
wells produced 30-day average rates of
563, 570 and 668 boe/d, respectively, with
laterals ranging from 4,427 feet to 4,539
feet. Thibodeaux says the wells are performing in line with Apache's Southern
Midland Basin type-curve when adjusted
for foot of treated lateral.
Apache continues to mark milestones,
he reveals, including spudding its first horizontal well pad in Midland County at the
Wildfire Field. In the Barnhardt Field,
where Apache also targets the Wolfcamp
Shale, the Bennie 4342 H33M and H43M
wells produced at 30-day average rates of
788 and 712 boe/d, respectively, with lateral lengths longer than 9,000 feet.
In the Cedar Lake area of the Central
Basin Platform/Northwest Shelf, Thibodeaux continues, the Crow Federal
34H and 36H wells were brought on production at 30-day average rates of 969-a
field record-and 448 boe/d, respectively,
with lateral lengths of about 4,300 feet.
Meanwhile, Thibodeaux says Apache's
first North Monahans horizontal well
was completed with 22 fracture stages in
a 4,259-foot lateral and produced a 30-day
average IP rate of 1,339 boe/d.
The company also continues to develop its enhanced oil recovery projects in the
Central Basin Platform and Northwest
Shelf, Thibodeaux says. "Those floods
have slower declines and are profitable,
even at lower commodity prices," he remarks.
San Andres Program
Producing from laterals that range
from a mile to a mile and a half to gain the
best efficiencies, privately held Manzano
LLC, based in Roswell, N.M., is targeting
the San Andres on a 17,000-acre position
in Lea County, N.M., and neighboring
Yoakum County, Tx., says Ken Barbe Jr.,
Manzano partner and manager.

American Oil and Gas Reporter - June 2015

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