Devon Stacks Up More Success in STACK Play
Devon Energy Corp. reported Monday it has encountered more success with its spacing pilot program in its STACK [Sooner Trend Anadarko Basin Canadian and Kingfisher Counties] play in Oklahoma.
The Alma spacing pilot tested five wells per section across a single interval in the upper Meramec, delivering 30-day production rates averaging 1,400 barrels of oil equivalent per day (boepd) per well. Sixty percent of this production was light oil, the Oklahoma City-based company reported in a July 18 press release. Early flowback results from the pilot indicate minimal interference between wells, suggesting potential for tighter spacing in the over-pressured oil window. The wells were drilled with 5,000-foot laterals and brought online with a 12/64-inch choke, then gradually increased to a 20/64-inch choke.
During the rest of 2016, the company will participate in several additional spacing pilots to determine to optimal approach to developing stacked-pay intervals in the Meramec, Devon said in the release.
Devon also recently brought online the Pony Express 27-1H well in the over-pressured oil window in southwest Kingfisher County, Oklahoma. The company drilled the well with a 5,000-foot lateral achieved a 30-day average rate of 2,100 boepd – including 1,500 barrels per day of oil. Devon said the well’s oil productivity is the highest of any Meramec well drilled so far in the play on a lateral foot basis.
Seeking potential growth opportunities, operators such as Marathon Oil Corp. are seeking to acquire acreage in Oklahoma’s high margin STACK basin. Last month, Marathon said it would acquire PayRock Energy Holdings LLC for $888 million. In late 2015, Devon acquired assets in the Anadarko Basin from Felix Energy LLC for $1.9 billion to expand its STACK holdings, even as it looked to sell assets across four major shale basins to raise cash and cut debt.
The STACK play is one of the great emerging onshore North America plays, Devon Energy Corp President and CEO Dave Hager told attendees June 29 at the JP Morgan Inaugural Energy Equity Conference. The company holds 430,000 net acres in the STACK play, located mainly in Canadian, Kingfisher and Blaine counties in Oklahoma. Hager said Devon has increased its STACK production significantly, achieving first quarter net production from the STACK play of approximately 91,000 boed.
Plenty of areas in the STACK play offer returns well in excess of cost per capital, but Hager sees the Woodford and Meramec plays as the economic heart of STACK. The company has identified 5,300 gross risked drilling locations in both formations.
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