Oklahoma 2018

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OKLAHOMA: PRODUCTION FORECAST | November 2018 | 43 and business practices have all improved. Addition- ally, investments in infrastructure and proximity to multiple markets have facilitated fi eld develop- ments and business optionality. Midcontinent outlook Production and the outlook for growth in the Mid- continent region rest squarely on the Scoop and Stack plays. Operators in the region have raised type curves and announced plans for bolstering activity in the near term. It is worth noting that some shift from the Stack to the Scoop and vice versa has been happening for several years. Stratas Advisors sees this as an ongoing part of operations within the region. Infrastructure investments from years past coupled with changes in completions practices are expected to keep cost escalations in check. One notable difference separating the Scoop/Stack from earlier plays is the presence of sizable drilling inventories. This all bodes well for the region. The Scoop and Stack plays are the primary driv- ers of production growth, lifting year-end 2018 pro- duction just more than 1,440 Mboe/d, an increase of 17% from December 2017. During this period, the share of Midcon production from the Scoop and Stack increased from 53% to 63%. Looking fur- ther out on the horizon, these plays will combine for more than 70% of estimated unconventional production from the basin in December 2023. Figure 2 shows the relative positions of the major unconventional opportunities in Okla- homa. Of particular note is the occurrence of over- lapping formations, providing the basis for the "stacked pay" condition often referenced in the Anadarko Basin. The Anadarko Basin cuts across western portions of the state beginning in the northwest corner and extending into Texas west of the Ardmore Basin. As shown, Western Oklahoma geology is characterized with many overlapping plays and formations. The Anadarko Basin is a deep and prolific resource opportunity. At its thickest, the rock is more than 40,000 ft thick. More importantly, resource estimates from the U.S. Geologic Survey attribute more than 5 Bbbl of liquids and 135 Tcf of gas to the basin, indicating a deep bench of future opportunity. Other features and characteristics in FIGURE 1. 2018 US Production (24.8 MMboe/d) (All data and images courtesy of Stratas Advisors)

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