Oklahoma 2018

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OKLAHOMA: OVERVIEW 4 | November 2018 | F orty years ago the oil industry was focused on the deep Anadarko Basin in western Okla- homa, drilling natural gas wells into the Hunton at 26,000 ft to 29,000 ft. Now the industry has its attention on the shallower eastern end of the Anadarko Basin in the Scoop, Stack and Merge plays in central Oklahoma. The Stack and the Scoop are seeing a resur- gence of activity as companies are targeting the oil-rich portions of those plays. Multiyear, mul- tireservoir projects are becoming the standard for development. Continental Resources, which launched the Scoop, has a 70-sq-mile development called Project SpringBoard in that play. "This is a massive oil project," said Jack Stark, Continental Resources president. "It has gross resource potential of up to 400 million barrels of oil equivalent [boe] of gross resource potential, and 70% to 85% is expected to oil." Continental controls approximately 31,000 net acres in this 45,000 contiguous-acre block and expects to drill up to 350 wells with about 100 wells in the Springer and 250 wells in the Woodford/ Sycamore, according to Stark. "This represents only 18% of our Springer acreage and 12% of our Woodford/Sycamore acreage," he said. Chaparral Energy considers itself to be a pure Stack player in Canadian, Kingfisher and Garfield counties. "We have drilled three different horizontals in Garfield County—the Meramec, Osage and Wood- ford," said Jim Miller, Chaparral's senior vice pres- ident of operations. "The Stack is anywhere from 70% to 85% oil." Multizone development cuts well costs Devon Energy has more than 600,000 net acres by formation in Oklahoma's Stack play, "provid- ing a massive runway of multizone opportuni- ties that will keep us busy for many years," said Devon CFO Jeff Ritenour in a June 18 J.P. Morgan Energy Conference presentation. "The stacked pay in the Delaware Basin and the Stack provides us the opportunity to develop a material amount of resource in a very capital-efficient manner." The company has 5,700 Stack risked locations with more than 11,000 potential locations. To execute its multizone development strategy, Devon must secure its supply chain. "In each of our active areas we've procured dedicated rig and frack crews and secured lon- ger-term contracts where appropriate to ensure execution on our 2018 and 2019 capital pro- grams," Ritenour said. Drilling rigs are being moved from gas-prone areas in the eastern Anadarko Basin to the oil window. Operators Target Oil-rich Areas in Scoop, Stack and Merge Plays By Scott Weeden Contributing Editor

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