American Oil and Gas Reporter - May 2019 - 76

strategy for 2019, is to accelerate development in Canadian County, Ok, and to
define optimal well spacing across derisked acreage.
"We are looking to optimize well spacing in Canadian and Kingfisher counties
as we continue to conduct spacing tests
in these key areas," he states. "Approximately 60% of our 2019 drilling and
completion capital will go to our oil-rich
Canadian County position, while 20%
will go toward continued development
in Kingfisher County and around 20% to
Garfield County."
As Chaparral works on optimizing its
well spacing, Calhoun says, there are several factors to consider. "Our development
design strives for the optimal balance of
high rates of return and net present value,"
he emphasizes. "That is something Chaparral really focuses on. We utilize an earth
model derived from 3-D seismic to help
pick our well location, target interval and
well density. We design our fractures for
enhanced near-wellbore stimulated reservoir volume and manage parent well communication risk. We are continuously evaluating and applying what we learn from
one project to the next to ensure we are
getting the absolute most out of every
dollar we invest in our operations."
Calhoun says Chaparral uses a systematic approach to spacing development.
"Our initial indications point to six-eight
Meramec and Osage wells per section,"
he states.

Chaparral Energy, which is
drilling six-eight Meramec and
Osage wells per section in the
STACK, utilizes an earth model
derived from 3-D seismic to help
pick well locations, target intervals and well density, according
to Vice President of Resource
Development Clint Calhoun.
Fractures are designed to enhance near-wellbore stimulated
reservoir volume and to manage
parent well communication risk.

As of year-end 2018, he says, the
company believed it had effectively derisked more than 80% of its Canadian
County position and more than 50% of
its Garfield County leasehold.
He adds that Chaparral brought 44
gross operated Meramec and Osage wells
on line in 2018. "Those wells outperformed the company's expectation with
an average three-phase, 30-day initial
production rate of 750 boe/d, of which
47% was oil and 26% was NGLs," Calhoun reports.

Chaparral Energy grew its STACK production to 16,600 barrels of oil equivalent a day in
fourth quarter 2018, up 6% from the third quarter. Full-year STACK production grew by
52% compared with 2017, to 14,400 boe/d. According to Vice President of Resource Development Clint Calhoun, Chaparral's STACK type curves range from 584,000 to 1.46 million boe (54%-72% liquids).

76 THE AMERICAN OIL & GAS REPORTER

While Chaparral's 2018 wells averaged
approximately 4,700 feet, it has drilled
laterals as long as 7,500 feet in the
STACK. Calhoun says the total vertical
depth for Chaparral's STACK wells varies
from 7,000 to 10,000 feet.
He also points out that production
rates vary by zone and by county. Chaparral's STACK type curves range from
584,000 to 1.46 MMboe (54%-72% liquids) with a rate of return ranging from
30% to more than 60%.
At present, Calhoun says, Chaparral
is drilling two-four wells per pad location,
adding that the company has done a good
job in lowering well costs.
"We look at every dollar we spend. In
many cases, we use short-term contracts
with our service providers, which allows
us to be more flexible. We build our own
locations, which saves some money," he
outlines. "It's this laser focus that has allowed us to become one of the lowestcost operators in the play. In fact, our
cost per lateral foot is among the best in
the industry at around $800 a foot."
Project SpringBoard
A year ago, Continental Resources
announced a massive undertaking in the
SCOOP. Project SpringBoard is expected
to add more than 16,500 barrels of daily
oil production (an increase of more than
10%) to Continental's overall production
between third quarter 2018 and third
quarter 2019.
In making the initial announcement
in May 2018, Continental said it could
drill up to 350 wells in a 73 square-mile
area of South-Central Oklahoma. Project
SpringBoard includes 47,000 gross (35,000

American Oil and Gas Reporter - May 2019

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