OK's STACK and SCOOP | Russell T. Rudy Energy LLC
It appears that the emerging consensus in the oil industry is that prices will be “lower for longer”. Consequently, operators are investing their scarce exploration and development capital in plays that offer the prospect of profitability at prices below $40 a barrel. The Delaware Basin of the Permian Basin of West Texas and Southeastern New Mexico is a case in point. However, two Oklahoma prospects, the STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher Counties) and SCOOP (South Central Oklahoma Oil Province), are receiving a great deal of attention as well.
STACK
The STACK play was discovered by Newfield Exploration Co. Last August Devon Energy expanded its presence in the STACK when it purchased Felix Energy LLC’s interest in the play for $1.9 billion. Devon has indicated the STACK and the Delaware Basin will be the primary focus of its drilling program. In June, Marathon Oil bought PayRock Energy Holdings LLC’s assets in the STACK has indicated that it regards the play as one of the best in the U. S.
Operators are still trying to determine the limits in terms of production intervals, area and well density. Initially the oil prone Meramac and Oswego zones were of primary interest. The Woodford had previously been considered gas prone, but operators think it might contain significant oil potential as well.
The aerial limits of the STACK have yet to be determined, and the same is true for optimal well spacing. Devon is conducting down-spacing tests at its Alma spacing pilot in the Meramac formation. Some geologists think that there might be 10 or more vertically stacked producing zones in the STACK, with as many as three of them being in the Meramac (Upper, Middle and Lower). The Woodford seems to be capable of supporting at least one well per section.
SCOOP
The SCOOP was discovered by Continental Resources in 2012 and its potential is a little more developed than that of the STACK. In spite of complex geology and higher drilling expenses, operators are still excited about the play’s economic potential with current low prices. The Woodford and Springer zones are primary targets. The SCOOP is considered a tight oil play but there is significant gas potential as well. Continental has recently modified its completion techniques in the Woodford increasing production rates by 35-40% and expected ultimate recoveries by 15%.
Continental has also had success drilling the Springer interval, but with its higher breakeven points, it cannot compete successfully for drilling capital with the company’s other opportunities. It is considered an “oil asset waiting for higher prices.”
To read the article, which contains a map of the plays, indicating the areas in which various operators are concentrating, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=146343&utm .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
