Oklahoma 2018

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OKLAHOMA: OVERVIEW 6 | November 2018 | Project SpringBoard will be developed in two phases, starting with the Springer in Phase 1, fol- lowed by the Woodford and Sycamore in Phase 2. "We have 29 Springer units that on average will be developed on 1,280-acre spacing," Stark said. "We're going to develop it with what we call row-development strategies. The units are divided into four rows, which we will develop one row at a time, starting on the east side and heading west." The first row is underway with six rigs operating. "With uniform row development, you can imag- ine the operating efficiencies we can gain," Stark said. "Our teams believe they can cut upward of $1 million from the cost of a Springer well over time with row development. We believe a typical Springer well will ultimately produce somewhere in the range of 1.2 million boe for the Springer. At $65 oil, these wells deliver a rate of return (ROR) of 180%." While developing this phase, Continental's teams discovered the company could save $1 mil- lion per well by not having to set an intermediate string of casing. The second phase is targeting the Woodford and Sycamore. There will be 35 total operated units in this phase. Continental recently moved three drilling rigs from the more gas-prone areas of the Stack with two rigs going into the Stack oil window and one rig into the Scoop in the Springer. The company drilled its Pyle 1-25-36-1XH well into the Woodford with a 2-mile lateral. "It came in at 1,812 boe/d (81% oil)," Stark said. "We completed the Pyle with our optimized com- pletion, which is basically tighter stage spacing and more proppant and is an outstanding producer." The company's Stack Meramec has five rigs in the overpressured oil window. The unit's economic model achieved the maximum PV-10 with eight wells (two zones per unit and four wells per zone). Based on $65/bbl oil and $3/MMBtu gas, ROR is 104%, and payout is 11 months. The well had a 9,800-ft lateral. Well cost was about $9.5 million. Earlier this year Continental signed an agree- ment with Enable Midstream for 400 MMcf of firm transportation. Continental Resources' Scoop production averaged 62,012 boe/d (26% oil) in the first quarter. (Photo courtesy of Continental Resources)

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