American Oil and Gas Reporter - May 2019 - 78

SpecialReport: Mid-Continent Activity Update
31% over fourth quarter 2017, averaging
62,947 boe/d. Continental says it completed 19 gross (nine net) operated STACK
wells in the fourth quarter with first production flowing at an average 24-hour
rate of 3,645 boe/d per well.
Continental says it has completed an
outstanding Meramec unit in the STACK's
overpressured condensate window. The
three-well Boden unit flowed at a combined initial 24-hour rate of 14,071 boe/d,
averaging 1,197 bbl oil and 20.961
MMcf/d of natural gas per well.
"Results from the Boden unit further
validate Continental's optimized density
development and the high quality of the
overpressured Meramec that underlies
our acreage position in the STACK,"
stated company President Jack Stark.
Continental Resources' Project SpringBoard in Oklahoma's SCOOP play is expected to
add more than 16,500 barrels a day of crude production to the company total by the third
quarter. The project consists of 47,000 gross acres (35,000 net) in a 73-square-mile area
of South-Central Oklahoma that have an unrisked resource potential of more than 55
million barrels of oil equivalent.

net) acres with an unrisked resource potential of more than 400 MMboe, according to a company news release. The
company says it will operate SpringBoard
with an average 75% working interest in
the project.
"SpringBoard marks the beginning of
full-scale development of our SCOOP
oil assets, following years of exploration,
leasing and delineation drilling," Vice
President of Exploration Tony Barrett
said in making the announcement. "These
barrels represent some of the most profitable barrels within the company."
The company provided a Project
SpringBoard progress update in January,
announcing that row one had been completed in the Springer formation with average per well EUR of 1.3 MMboe.
Continental had seven rigs drilling
Springer wells in rows two and three with
16 wells waiting on completion and another
five rigs drilling in the Woodford/Sycamore
zones, where 17 wells were awaiting completion, the January report indicated. It
also increased lateral lengths from 7,500
to 9,800 feet, the company said. A total
of five rows will be drilled as it codevelops both reservoirs.
Continental says it plans to drill threefour Springer wells a unit, two-four
Sycamore wells a unit and five-six Woodford wells at 11,000 feet deep. The
Springer wells are producing 80-85% oil,
78 THE AMERICAN OIL & GAS REPORTER

while the Woodford/Sycamore wells are
approximately 70% oil.
By year-end 2020, Continental says it
expects to drill 31 operated units and up
to 85 wells in the Springer formation. It
also plans to drill 31 operated units and
up to 250 wells (excluding parent wells),
in the Woodford/Sycamore zone.
While well costs increased 5% by
drilling the longer laterals in the Springer
formation, the cost per lateral foot was
reduced 20%, according to a company
update. Per well EURs increased 8%,
from 1.2 MMboe to 1.3 MMboe.
Continental claims it has achieved a
10% reduction in Springer completed
well costs, lowering drilling costs by
18% and cycle times by 24%. It also
says it is completing 45% more stages a
day. The company says it is targeting an
additional 6-8% reduction in Springer
completed well costs this year, including
a 15% reduction in both drilling costs
and drilling cycle time. Completion costs,
however, will remain flat, according to
company projections, while proppant
loads increase by 30%.
Overpressured Condensate Unit
While Project SpringBoard in the
SCOOP is Continental's primary focus
this year, the company reports that its
fourth-quarter STACK production also
increased 12% over the third quarter and

Oil Growth Transformation
Devon Energy announced in February
that it was separating its Canadian and
Barnett Shale assets to complete its transformation to a high-return U.S. oil-growth
business. The STACK play is a key component of that strategy.
Devon reported 296,000 boe/d fourth
quarter production from its four top oilproducing basins: STACK, the Delaware
in southeastern New Mexico, the Eagle
Ford in South Texas and the Powder
River in Wyoming. Eighty-four percent
of the company's fourth quarter revenue
came from oil and liquids.
Devon says the STACK represents its
largest producing asset, generating 126,000
boe/d (55% liquids) in the fourth quarter.
That is 24% of the company's portfolio.
"With our world-class U.S. oil resource
plays rapidly building momentum and
achieving operating scale, the final step
in our multi-year transformation is an
aggressive, transformational move that
will accelerate value creation for our
shareholders by further simplifying our
resource-rich asset portfolio," says Devon
President and Chief Executive Officer
Dave Hager.
He adds, "New Devon will emerge
with a highly focused U.S. asset portfolio,
and has the ability to substantially increase returns and profitability as we
aggressively align our cost structure to
expand margins with this top-tier oil
business. The new Devon will be able
to grow oil volumes at a mid-teens rate
while generating free cash flow at pricing
above $46 a barrel."

American Oil and Gas Reporter - May 2019

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