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Scoop-Stack Playbook 2017

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SCOOP/STACK: KEY PLAYERS 20 | September 2017 | age daily production. During 2016 LINN invested about $31 million to develop the properties in this region and about $40 million in exploration activ- ity, the website stated. As of February, the company had about 185,000 net acres in the Scoop/Stack/Merge area with 96% HBP, according to a supplemental emergence presentation. This area holds a net production of about 56 MMcfe/d (58% natural gas, 20% NGL and 22% oil) including existing vertical production in western Oklahoma. "The company holds a significant acreage posi- tion in the NW Stack that is 99%-plus held by pro- duction. The primary horizontal drilling targets are the Osage and Meramec formations. Industry activity has significantly increased in the area, with 43 horizontal well permits in the first quarter of 2017 compared to 18 in the first quarter of 2016," according to the company's first-quarter 2017 report. "There are 17 rigs currently running and recently several companies have announced acre- age acquisitions in the area. In the first quarter of 2017, the company participated in two gross (0.24 net) nonoperated horizontal completions in the NW Stack." In addition, LINN Energy signed an agreement with Citizen Energy II LLC in which both compa- nies will contribute certain upstream assets in Okla- homa to a newly formed company, Roan Resources LLC, focused on the accelerated development of the Merge/Scoop/Stack play in the Anadarko Basin, a June press release stated. Roan will have about 140,000 total net acres forming a core, largely con- tiguous position with LINN and Citizen each con- tributing about 70,000 net acres. Longfellow Energy LP Founded in 2006, Longfellow Energy LP is a pri- vately owned oil and natural E&P company pri- marily engaged in the exploration and development of new reserves in onshore U.S. basins that have been underdeveloped and overlooked, the company stated on its website. Longfellow controls about 80,000 net acres and operations in about 125 sections. Through May, the company, with privately owned Viking Drilling LLC's rigs, has drilled more than 90 wells. Located in the Stack play, the company's Nemaha project initiated in 2011 and drilling began in early 2012. The project has 88 horizontal lateral wells drilled and producing; four saltwater disposal wells; covers 128 contiguous governmental sections; controls 81,000 gross acres (60,500 net acres); has 51 drilling pads built to date; and 71 miles of 10-in. saltwater disposal pipeline connect- ing the drilling pads. In May Longfellow's Sandra 22-M3H well was drilled to a measured depth of 11,200 ft in 13.54 days (spud to rig release) setting a new record for a Nemaha Project well. The com- pany also reported on its website that, "In March 2017 Longfellow engineers achieved a record frac- ture treatment on its Jodie 24-M3H well in the Nemaha Project. A total of 6.73 million pounds of sand was pumped in the treatment into 32 fracture stages. The well has been producing strongly, indi- cating the treatment was effective and leading to a significant increase in future well reserves." The company's McGee Valley project is located in Atoka County in Oklahoma. This project has 16 producing vertical gas wells, 6,000 ft to 11,000 ft in depth, covers 11 contiguous governmental sections and has 7,040 gross acres (6,878 net acres). Marathon Oil Marathon Oil has been involved in Oklahoma E&P for 100 years. As of year-end 2016, Marathon Oil held about 365,000 net surface acres in the Okla- homa resource basins, which includes acreage acquired in August 2016 in the Stack Meramec play, the company stated on its website. In the Scoop and Stack areas the company holds net acres with rights to the Woodford, Springer, Meramec, Osage, Oswego, Granite Wash and other Pennsylvanian and Mississippian plays. The com- pany also has production in other areas of Okla- homa from conventional operations. According to the company's first-quarter 2017 results, Marathon reported an average 30-day IP rate of 990 boe/d from its Stack Meramec Yost spacing pilot (4,650 ft average lateral length). Mara- thon's unconventional Oklahoma production aver- aged 44,000 net boe/d during first-quarter 2017, compared to 45,000 net boe/d in the prior quarter and up more than 60% from the same quarter a

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