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Scoop-Stack Playbook 2017

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SCOOP/STACK: KEY PLAYERS 18 | September 2017 | pany reported an average Midcontinent production of 5,700 boe/d in first-quarter 2017, according to its May financial update. This was 7% less than the 6,100 boe/d reported in the same quarter a year ear- lier. First-quarter 2017 Midcontinent production consisted of about 49% oil, 28% natural gas and 23% NGL, the report stated. "In late March 2017 Gastar completed the acqui- sition of additional working and net revenue inter- ests in about 66 gross (9.5 net) producing wells and 5,670 net acres of additional Stack oil and gas leasehold interests in Kingfisher County, Okla., for about $51.4 million," according to the May report. "Prior to the acquisition, Gastar held an existing interest in the majority of the acquired producing wells and leasehold." The company's net capex, excluding acquisi- tions, in first-quarter 2017 totaled $24.9 million, which included $8.2 million for drilling, comple- tions and infrastructure costs; $15.7 million for unproved acreage extensions, renewals and addi- tions; and $1 million of other capitalized costs. For the remainder of 2017 the capex budget (as of May), including other capitalized costs, is $59 million, including $37.7 million for drilling, completion and infrastructure costs; $15.1 million for lease renewal and extension costs; and $6.2 million of other capitalized costs. Gulfport Energy Corp. Oklahoma-based Gulfport Energy's Scoop acreage totals about 85,000 net acres (about 46,400 net Woodford acres and about 38,600 net Springer acres) with four gross operating rigs as of first-quar- ter 2017. The company reported Scoop production of 172 MMcf/d during the first quarter, according to its website. That production was made up of about 11% oil, about 69% natural gas and about 20% NGL. For the remainder of the year, Gulfport's planned operated activity includes intentions to drill 19 to 21 gross (16 to 18 net) wells and turn to sales 14 to 16 net operated wells. The company's nonoperated activity includes intentions to drill and turn to sales 10 to 12 gross (one to two net) wells. The company will focus within the wet gas window this year. In February Gulfport closed the acquisition of core Scoop assets from Vitruvian II Woodford LLC for $1.85 billion, according to the company's first-quarter 2017 report. Included in the transac- tion were 48 producing horizontal wells and inter- ests in more than 150 nonoperated horizontal wells, according to a December 2016 IHS Markit report. Gulfport also acquired about 46,400 net surface acres in the core of the play, which includes rights to 46,400 Woodford acres and 38,600 Springer shale acres, the report stated. The estimated proved reserves attributable to the acreage were about 1.1 Tcfe. Four rigs were operating as of year-end 2016 on the acreage, and Gulfport intends to maintain that level of activity in the play during 2017 as well as add an additional two rigs at the beginning of 2018, according to the IHS report. The company also had scheduled to spud both a Springer and Sycamore location in the Scoop this summer, according to a May presentation. During second-quarter 2017, Gulfport turned- to-sales two gross (1.2 net) wells, the Vinson 2-22X27H and Vinson 3R-22X27H, located in the wet gas window in southern Grady County, Okla. Following 30 days of production, the Vinson 2-22X27H cumulatively produced 418.4 MMcf of natural gas and 1,382 bbl of oil, and the Vinson 3R-22X27H cumulatively produced 498.8 MMcf of natural gas and 1,552 bbl of oil, a June press release stated. Jones Energy Inc. Jones Energy, an independent oil and natural gas company headquartered in Austin, Texas, has operations in the Anadarko and Arkoma basins in Texas and Oklahoma. As of year-end 2016, the company held 199,218 net acres with 1,659 net drilling locations, had average production of 19.2 Mboe/d and total proved reserves of 105.2 MMBoe, according to a Jones Energy investor rela- tions representative. Jones Energy entered the Merge play in Sep- tember 2016 with an initial acquisition of 18,000 net acres predominately in Canadian and Grady counties, Okla. Since that time, the company has added about 3,688 net acres at an average price of $7,500 per acre to its position as of first-quar- ter 2017. The company's footprint is about 21,700 net acres.

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