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Unconventional Yearbook 2018

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62 | January 2018 | 2018 UNCONVENTIONAL YEARBOOK | DOWNSPACING don't need as many wells as you planned. Ideally you'd probably plan for a 10% degradation from a parent to a child. That means you have prop- erly spaced and properly capitalized that devel- opment. If there's no communication, then you really haven't drilled enough wells, or you haven't stimulated big enough." In a Nov. 7, 2017, news release and third-quar- ter earnings presentation, Cimarex Energy reported a strong uptick in drilling and comple- tions, including several downspacing tests in the Midcontinent. The Denver-based company is also active in the Permian's Delaware Basin. Overall, it has doubled both gross and net completions compared to the same period in 2016, with 198 gross completed wells in the fi rst nine months of 2017, funded with a $900 million to $925 million drilling and completion budget. With enhanced completion design and improved well performance, Cimarex is employing tighter development well spacing in all its tests. They announced fi ve successful spacing pilots in 2017, including a 12-wells-per-section Upper Wolfcamp on production in Culberson County and a 14-wells- per-section Lower Wolfcamp test drilling nearby. Also drilling is an 18-wells-per-section Upper Wolf- camp project in Reeves County. The Tim Tam infi ll development in Culberson County includes fi ve 10,000-ft wells testing with six wells per section. Infi lls have surpassed parent wells in both landing zones. Tim Tam infi ll spacing is 1,756 ft laterally and 200 ft vertically. The Animal Kingdom infi ll testing has 14 wells per section. It is currently drilling eight wells with three landings. Animal Kingdom spacing is 1,216 ft horizontally and 225 ft vertically. Culberson County Upper Wolfcamp pilots show similar per-well results with six, eight or 12 wells per section. The Seattle Slew pilot is testing 12 wells per section in a stack/stagger pattern. Seattle Slew spacing is 904 ft horizontally and 125 ft vertically. In Reeves County, Cimarex has its Snowshoe, Wood State and Pagoda State projects targeting the Upper Wolfcamp. Currently 24 10,000-ft lat- erals are producing with an average 30-day peak IP of 1,728 boe/d (49% oil; 29% gas; 22% NGL). Two downspacing pilots are producing. Those include the Wood State (12 wells per section) and Pagoda State (16 wells per section). Wood State and Pagoda spacing is 680 ft horizontally and 340 ft vertically. The Snowshoe development will test 18 wells per section, seeking three landing zones. Snowshoe spacing is 880 ft horizontally and varies from 100 ft to 375 ft vertically. In the Midcontinent, Cimarex is successfully exploiting Meramec and Woodford stacked targets, with 45 wells producing at an average lateral length of about 6,800 ft. Average 30-day IP is 1,591 boe/d (40% oil; 40% gas; 20% NGL). The company has brought on seven 10,000-ft lateral wells in 2017 YTD with average 30-day IP of 1,996 boe/d (46% oil, 36% gas, 18% NGL). Industry delineation continues with 24 downspacing pilots online or underway in the play. Cimarex has interest or data on all but four. Cimarex's Woodford projects have tested both 16- and 20-well spacing per section. Preliminary results show no signifi cant difference in well per- formance between the two spacing tests, indicating that Woodford wells can be drilled closer together in future infi ll projects than they have been historically. The Leon Gundy is a stacked/staggered pilot with four Meramec wells testing 10 wells per sec- tion and four Woodford wells testing nine wells per section. Spacing is 1,065 ft horizontally and 200 ft vertically in the Meramec, and 578 ft horizontally in the Woodford, with 300 ft vertically. The best Woodford returns in Cimerex's port- folio are from its Lone Rock activity. The Hines Federal #1H had a 30-day average peak produc- tion of 15.2 MMcfe/d (40% oil, 23% NGL, 37% gas). The company has about 16,000 net con- tiguous acres in the overpressured Woodford. Infill drilling is underway, with nine wells testing eight- and 11-well per section models. Spacing is 446 ft for an eight-well configuration and 637 ft for an 11-well spacing. From the days when Barnett Shale operators were drilling horizontally mainly to avoid the Ellen- berger, to the cubes, wine-racks and optimized completions of today, the evolution of unconven- tional oil and gas development continues. As one oil executive remarked, technology and teamwork are "unleashing the true potential of our superior geological assets." ■

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