American Oil and Gas Reporter - May 2017 - 78

SpecialReport: Mid-Continent Activity Profile

One of Newfield Exploration Company's STACK wells in Kingfisher County, Ok., has produced 417 barrels of oil per 1,000-foot gross perforated interval, and a 20-day average of
361 barrels per 1,000-foot gross perforated interval. Both are the most prolific publicly
reported rates for a well in the STACK and SCOOP, the company says.

Meramec and four Middle Meramec," he
relates. "They came on flowing at a combined maximum 24-hour initial flow rate
of 21,350 boe/d (70 percent oil)."
Moreover, Stark reports, the dual-zone
density test demonstrates how the company
continues to hone its technique, slashing
drilling costs by 35 percent and slicing
30 percent off its overall well costs. "There
is a lot of efficiency in unit development,"
he emphasizes. "The original Ludwig
well cost $11 million. By comparison,
the average cost of the Ludwig density
wells was $7.8 million. At $7.8 million,
the density wells deliver 100 percent rate
of return at $35. At our current standalone well cost of $9 million, we will
make a 100 percent rate of return at $45
oil. The economics are outstanding."
According to the company, another
key success in the second half of 2016
was Continental's completion of three
Meramec wells in the STACK's overpressured gas window. The three wells
are located in the southwestern part of
the company's leasehold in an area it
calls Deep STACK, where the Meramec
is encountered at depths of at least
13,000 feet.
According to Continental, all three
wells completed flowing more than 20
MMcf/d and 49-84 bbl/d at flowing casing
pressures of 5,900-7,500 psi.
The company projects that its Deep
STACK wells have an average estimated
ultimate recovery of 20 Bcf per well from
a 9,800-foot lateral, generating an ap78 THE AMERICAN OIL & GAS REPORTER

proximate 50 percent rate of return at a
completed well cost of $11 million, based
on natural gas prices of $3.50 an Mcf.
SCOOP
As prolific STACK wells generate
headlines, the SCOOP play, which Continental originally pioneered, continues
to be a success, the company indicates.
Stark says Continental is operating five
rigs in the SCOOP.
"We continue to expand and de-risk
the play," he describes. "We are focusing
on the Woodford oil and condensate windows. After a two-year hiatus, we also are
going back in and drilling in the Springer."
Stark explains that the company first
announced the discovery of the SCOOP
Woodford in 2012 and then the SCOOP
Springer in 2014. He describes the
SCOOP Springer as an over-pressured
oil reservoir that yields 80-85 percent
oil. "We drilled the Woodford, and our
team recognized the zone above the
Woodford (the Springer) was a potential
resource candidate," he notes. "We evaluated the potential reservoir with core
work, which was followed by vertical
and horizontal tests."
Thanks to the company's Woodford
activity, essentially all of Continental's
Springer acreage was held by production,
Stark points out, so it postponed development and waited for market conditions
to improve. After pausing a couple years
from Springer drilling, Stark says, Continental is ready to start testing the zone

again. "We are excited to see what the
new stimulation techniques and longer
laterals will do," he relates.
Continental has completed around 40
Springer wells in the SCOOP, mostly
with one-mile laterals. Stark says the
company has scheduled a five-well Springer
test this year that will utilize one-mile,
7,500-foot and two-mile laterals.
As for the key elements that comprise
the company's enhanced completions,
Stark lists higher proppant loads and
tighter stage spacing. He reports those
stimulations have increased production
rates and estimated ultimate recovery.
Ultimately, he details, Continental's
2017 drilling plans include 34 gross (20
net) wells in the SCOOP and 100 gross
wells (50 net) in the STACK.
Enhanced Completions
After pioneering the STACK play in
2013, Newfield Exploration Company
has invested significantly in both the
STACK and SCOOP to build its Oklahoma
asset base into a 400,000-net acre powerhouse of resource play prospects.
The results speak for themselves.
One of its newest STACK wells in Kingfisher County achieved a 24-hour flow
rate of 2,931 boe/d (69 percent oil) and
a 20-day average rate of 2,492 boe/d
(70 percent oil), according to Steve
Campbell, Newfield's vice president of
investor relations.
The Burgess well, drilled with a 4,859foot lateral, posted a record 24-hour oil
production of 417 barrels of oil per 1,000foot gross perforated interval (GPI) and
a 20-day average oil production of 361
barrels per 1,000-foot GPI, the company
indicates. "Both are the highest oil production rates per 1,000-foot GPI publicly
reported in the SCOOP and STACK,"
says Campbell.
Campbell says Newfield is the most
active SCOOP and STACK operator, and
points out the company has 400,000 net
acres in the Anadarko Basin-300,000 in
the STACK and 100,000 in the SCOOP.
"We have drilled 140 wells and participated in 250," he states. "The industry as
a whole has drilled only 550-600 (SCOOP
and STACK) wells, so by far we are more
active than any other company."
Newfield indicates it first discovered

American Oil and Gas Reporter - May 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2017