SCOOP to Rival Eagle Ford and Bakken? | Russell T. Rudy Energy LLC
According to a recent article in “Rigzone”, consulting firm Wood Mackenzie says “yes”! In their most recent analysis they find that the core areas of the South-Central Oklahoma Oil Province (SCOOP) compare favorably with the Eagle Ford and the Bakken shales. This is partly because the SCOOP, which encompasses parts of the Anadarko and Ardmore basins, has the potential for stacked pay zones.
The SCOOP province consists of three plays, the SCOOP, STACK and the Cana Woodford, which Wood Mackenzie breaks down into nine sub-plays. Within the SCOOP core area new wells can breakeven economically at $41 per barrel and $4.12 per thousand cubic feet.
Highlights of the Wood Mackenzie analysis include:
Springer Shale offers the best economics within the SCOOP and compares favorably with the “sweet spots” in the Bakken and Eagle Ford.
2015 Capital Expenditures in the SCOOP will exceed $4 billion in 2015. While fewer wells will be drilled, more will be drilled in “sweet spot” areas which will involve greater vertical depths and longer lateral legs.
Horizontal Rig Count will drop from 92 in 2014 to around 60 this year. Operators will divert attention from delineation wells to focus on drilling to hold core acreage.
Non-Core Subplays are not economic at current prices, largely due to the challenging and heterogeneous geology in these areas.
