Oklahoma 2018

Issue link:

Contents of this Issue


Page 9 of 55

OKLAHOMA: OVERVIEW 8 | November 2018 | "Gas demand in North Texas is strong, partic- ularly in the Dallas-Fort Worth area," Stark said. "Project Wildcat provides fl ow assurance for Con- tinental and should accommodate our growth in Oklahoma for the foreseeable future." High-growth Stack pure play upstream oil With 119,000 acres mostly in the Stack in Cana- dian, Kingfi sher and Garfi eld counties, Chaparral had production of 12,300 boe/d in fi rst quarter of the year. The company replaced 604% of its 2017 Stack production at a low fi nding and development cost of $7.26/boe. Drilling opportunities provide internal rates of return from 45% to 100% at $61.49 oil and $2.74 gas. The company is now focusing on the lower- pressure area where costs are less than in the higher- pressure area. "We're going to multiple-well pads, which saves from $250,000 to $350,000, depending on how many wells we place per pad," Miller said. Pad drilling also helps with water consolidation and disposal. "We have our own water disposal system mostly in Garfi eld County," he said. "We are exploring options to monetize that system in Kingfi sher County. If we are able to do that, we can fi x our disposal rates for wells in Kingfi sher and Garfi eld counties for the next several years. "We also have quite a few centrally located frack pits across our acreage, which makes it easier for water transfer and keeps down a lot of the higher rate transport rates since there is a shorter distance to transfer," Miller said. Josh Walker, Chaparral's vice president of com- pletions and operations, said the company is doing a lot of little things that add up in terms of cost sav- ings. In addition to the company's current contract with EcoStim Energy Solutions, Chaparral contin- ues to evaluate frack design and mix, eliminating unnecessary chemicals to save on costs. Meramec and Osage wells in Kingfi sher County average 932 boe/d IP30 (83% liquids). The Meramec wells in Canadian County average 1,093 boe/d IP30 (75% liquids). Osage wells in Garfi eld County aver- age 870 boe/d IP30 (61% liquids). Currently the company is drill- ing 4,800-ft laterals. "We are currently looking at the trade off for longer laterals up to 2 miles versus full-section develop- ment," Miller said. Chaparral has increased the number of frack stages from 25 to 30 in some areas. It has accelerated proppant loading, averaging 1,600 lb/ft to 1,900 lb/ft of proppant. "We are looking at going slightly higher on the proppant, especially in Canadian County," Miller said. "We are also looking at a change in the sand to more 100 mesh versus the 40/70 and 30/50 meshes we're using now. We'll probably be mov- ing to a tighter cluster stage too." The company's well costs are currently around $4 million. Q Chaparral Contiguous Core Stack Acreage Chaparral's largely blocked up 119,000-net-acre position is in the core of the Stack in Canadian, Kingfi sher and Garfi eld counties. (Image courtesy of Chaparral Energy)

Articles in this issue

Links on this page

Archives of this issue

view archives of Playbooks - Oklahoma 2018