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Scoop-Stack Playbook 2017

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SCOOP/STACK: KEY PLAYERS 14 | September 2017 | The company has more than 3,000 operated unrisked Stack drilling locations, with stacked pay potential in the Oswego, Meramec, Osage and Woodford formations. According to the company's April 2017 investor update presentation, Chaparral achieved total net production of 24.4 Mboe/d in 2016, of which 55% was oil, 16% was NGL and 29% was natural gas. Its first-quarter 2017 production was down slightly to 22.5 Mboe/d, which is in line with its 2017 annual production guidance of 8.2 MMboe to 8.6 MMboe. Chaparral produced 8,040 boe/d in the Stack during the first quarter, which marked a 21% year- over-year growth in Stack production. According to its website, the company has unrisked Stack resource potential of more than 900 MMboe. In addition, its 2016 average drilling and completion cost for its Stack Meramec wells was $3.3 million. The company also decreased its lease operating expenses in the Stack by 17% to $3.77/boe in 2016. The company will dedicate about $85 million of its $125 million to $150 million capex budget to Stack operations, particularly the development of its Garfield County and Merge acreage. As of April, Chaparral was operating two drilling rigs in the play. It plans to drill 18 to 20 Stack wells this year with potential to increase its drilling and comple- tion budget in late 2017, according to the compa- ny's April presentation. The company recently announced its plans to transition to a premier, pure-play Stack operator. As part of its new strategy, Chaparral is market- ing its EOR assets, including its Texas/Oklahoma Panhandle and North Burbank fields. According to the company's website, the North Burbank Unit is Oklahoma's largest EOR project with more than 824 MMboe of estimated original oil in place and the state's single largest unitized field. Net produc- tion in the North Burbank during the first quarter totaled 3,100 bbl/d of oil. Chesapeake Energy Corp. Chesapeake has about 870,000 net acres in the Wedge Play in the Midcontinent region, with 1,400 additional upside locations. Chesapeake drilled its first extended-lateral well in Major County targeting the Saint Genevieve For- mation (Meramec silt) in the Midcontinent region, according to the company's first-quarter 2017 report. This well had a completed lateral length of 9,900 ft and was placed in production in late April. Chesapeake expects to drill up to 20 addi - tional extended-lateral wells in the Saint Genevieve Formation in 2017. "The company also expects to test additional formations in its Midcontinent area, including the Chester limestone and sandstone formations, later this year. Chesapeake controls about 230,000 net acres that it believes are prospective for the Chester and has drilled and collected two full core samples of the section earlier in 2017 to help optimize its completion designs," the report stated. "The com- pany expects first results from the Chester in the third and fourth quarters of 2017." As of May, the company had four rigs and two fracturing crews in Oklahoma with 15% of the company's overall budget directed toward drill- ing and completion asset funding in that area. The company reported a peak rate in the Midcon- tinent area of 1,458 boe/d (67% oil) and is drill- ing on newly acquired acreage in Major County, according to a May investor presentation. Chaparral Energy's first-quarter 2017 production was 22.5 Mboe/d. (Photo courtesy of Chaparral Energy)

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