Laterals tap Texas Panhandle Granite Wash gas

By OGJ editors
HOUSTON, Apr. 11 -- Horizontal drilling and slick water frac jobs have come together to fuel a new area of activity in the Pennsylvanian Granite Wash play in the northeastern Texas Panhandle.

Although more than 600 wells have been drilled in this play in the past 5 years, only two operators have tried horizontal drilling. The first of those is Grayhawk Operating Inc., a private Plano, Tex., independent.

Grayhawk Operating has found Lard Ranch field ideal for horizontal drilling because the Granite Wash has 40-45 ft of net pay centered on 80 ft of gross pay at an average depth of 8,600 ft with no water-bearing formations above or below the pay. The company drills a lateral centered in the pay and performs three to four large slick water fracs through cemented casing.

The company believes each horizontal well will tap more than 3 bcf, about three times that of a vertical well, at $2.3-2.5 million or twice the cost of a vertical well.

In addition to increased production rates and reserves compared with vertical wells, the development of Lard Ranch field with horizontal wells will enable Grayhawk Operating to produce the hydrocarbons from a given section of land with less than half the number of wells compared with a vertical well development plan. This decreases the surface impact and has been well received by landowners.

Since the Granite Wash at Lard Ranch field produces small volumes of water, water disposal wells and related infrastructure are not needed. The field is in Roberts County 20-25 miles northwest of Miami in the Anadarko basin.

Horizontal drilling results
Grayhawk Operating's first horizontal Granite Wash well, Lard Ranch 1-60, has yielded 439 MMcf of gas, 9,900 bbl of light oil, and 2,625 bbl of water in its first 11 months on line.

Still making nearly 1 MMcfd of gas, 20 b/d of oil, and 4 b/d of water, it paid out in 10 months. The gas is 1,300 Btu/Mcf, and the oil is near 50° gravity.

Convinced of the economic merits of horizontal drilling, Grayhawk Operating in February extended the field's productive limits with completion of the Kivlehen 1-5 and Tolbert-Kivlehen 1-62. Each is producing 2 MMcfd, 30 b/d of oil, and 20 b/d of water with more than 1,500 psi flowing tubing pressure after being on line for 60 days. CAOF exceeded 15 MMcfd at both wells.

Grayhawk Operating expects to increase the production rates on these new wells following a recent expansion of gas gathering capacity in the field.

"The company is completing three other horizontal Granite Wash wells at Lard Ranch and will have six horizontal wells and one vertical well producing by the end of April 2006," said Cory Richards, president.

Lard Ranch field
The field, discovered in 1958, had a few wells making less than 200 Mcfd combined until last year, Richards said.

The field's productive limits extend well beyond the area currently producing, but the reservoirs are low permeability and were not economic to develop until new technologies and improved product prices arrived.

Lately, Chesapeake Energy Corp., J-Brex Exploration, Grayhawk Operating, and Tulsa independents Latigo Oil & Gas Co. and Prospective Investment & Trading Co. have been running two to four rigs at a time and hiked field production to more than 15 MMcfd.

Although its largest acreage block is centered in the Lard Ranch field area, Grayhawk Operating has more than 18,000 gross and 12,500 net acres under lease in Roberts and Hemphill counties at 70-100% interest and operates the wells it drills. Besides Granite Wash, the acreage has prospects in the Brown dolomite, Des Moines, Morrow, and Hunton formations.

Granite Wash Trend
With cumulative production exceeding 1 tcf of gas equivalent, the Granite Wash formation is a logical target for new drilling and completion technologies.

Operators have been using slick water fracs similar to those used in the North Texas Barnett shale play in vertical Texas Panhandle Granite Wash wells for 3-4 years.

Larger Granite Wash fields east of Lard Ranch, such as Hemphill, Buffalo Wallow, and Stiles Ranch aren't as likely to utilize horizontal drilling. This is because most are several thousand feet deeper, have larger volumes of producible water, and have several stacked packages of Granite Wash sands that make it difficult to determine which interval is the best target for a lateral.

Nevertheless, operators will watch a recent horizontal Granite Wash well that Newfield Exploration Co., Houston, drilled in Hemphill field with initial flow of more than 2 MMcfd in a square mile occupied by 16 vertical Granite Wash gas producing wells.

This indicates that even in the stacked-pay fields, some zones that were either not completed because they were lower porosity or were not effectively completed may be candidates for future horizontal drilling, Richards said.

Related Articles

Rex purchases 207,000 net acres from Shell in deal that increases Appalachian leasehold

10/16/2014 Rex Energy Corp. has signed a $120 million deal to acquire 207,000 net acres prospective to the Marcellus, Upper Devonian Burkett, and Utica shales...

Southwestern Energy to acquire Marcellus, Utica assets for $5.375 billion

10/16/2014 Southwestern Energy Co., Houston, has agreed to acquire assets in the southern Marcellus shale and a portion of the eastern Utica shale in West Vir...

People

08/13/2014

American Energy Partners LP has hired Jeffrey L. Mobley to serve as senior vice-president, major acquisitions.

Chesapeake, RKI E&P agree on Powder River acreage exchange

07/29/2014 Chesapeake Energy Corp. and RKI Exploration & Production LLC (RKI), both of Oklahoma City, have agreed to exchange nonoperated interests in 440...

Chesapeake to spinoff oil field services unit, divest $4 billion in assets

05/16/2014 Chesapeake Energy Corp., Oklahoma City, has decided to proceed with spinning off its oil field services business, currently conducted through its w...

Chesapeake mulls spinoff, sale of oil field services division

02/24/2014 Chesapeake Energy Corp. reported it is considering a potential spin-off to Chesapeake shareholders or an outright sale of Chesapeake Oilfield Servi...

Chesapeake Appalachia settles federal water pollution charges

12/19/2013 A Chesapeake Energy Corp. subsidiary agreed to spend $6.5 million to restore 27 sites damaged by unauthorized discharges of fill material into stre...

Chesapeake Midstream names chief operating officer

12/16/2009 Chesapeake Midstream Partners LLC (CMP), the recently formed 50-50 partnership of Global Infrastructure Partners LP and Chesapeake Energy Corp., na...

ExxonMobil to boost unconventional focus by acquiring XTO

12/14/2009 ExxonMobil Corp. has agreed to buy XTO Energy Inc. in an all-stock deal valued at $41 billion that will be part of a strengthened focus by the ener...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected