Playbooks Supplements

Scoop-Stack Playbook 2017

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SCOOP/STACK: OVERVIEW 4 | September 2017 | O nly a few U.S. oil plays have demonstrated the economic resiliency to justify contin- ued investment, drilling and A&D activity since oil prices began falling in late 2014. The Permian Basin is No. 1 on that short list, but close behind is the U.S. Midcontinent's Scoop/Stack play. At Hart Energy's DUG Midcontinent conference held last fall in Oklahoma City, producers, fi nan- ciers, service providers and other industry experts testifi ed to the region's strength. Operators can make money here even with crude in the $40s. Not everyone, and not everywhere, of course. Like any production province, the Scoop/Stack has its core areas and sweet spots. A recent Wood Mackenzie report noted two main drivers behind the Midcontinent rig count. First, the plays' cores are highly economic and can com- pete as the restructured industry rebounds. Second, operators are drilling to hold acreage. The overarching Scoop/Stack theme today is delineation and extension, according to Jessica Van Slyke, research analyst, U.S. Lower 48 and Gulf of Mexico Shelf Upstream for Wood Mackenzie. "The running room is limited," she said. "It can never be the next Permian in terms of contri- bution to Lower 48 supply. Contrast it with the Wolfcamp's reservoirs with multiple benches across vast areas. The Midcontinent's geology is quite vari- able, so formations disappear and reappear. But for operators in the core and those who can extend the play, it's great." Proof of this potential made headlines with Devon Energy Corp.'s announcement in early July that it had brought online a monster, record- setting Meramec well, the Privott-17-H, in south- west Kingfi sher County. It posted a facility-con- strained peak 24-hour rate of 6,000 boe/d (50% oil). Four other Devon high-rate Meramec wells in the core of the overpressured oil window attained an average 30-day IP of 2,000 boe/d. Over the past few years, Newfi eld Exploration Co. and others have been proving the viability of the Meramec that lies above the original Cana Woodford target. Activity has been moving west and north from the Stack core. Operators say that, between the Scoop and Stack, they can target more As operators work to expand the limits of this Midcontinent hot spot, some interesting options are springing up. Probing the Limits of the Scoop/Stack By Susan Klann Contributing Editor Devon operations continue in the Anadarko Basin of Oklahoma. (Photo courtesy of Devon Energy Corp.)

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