SandRidge cuts drilling in West Texas overthrust

By OGJ editors
HOUSTON, Feb. 26 -- SandRidge Energy Inc., Oklahoma City, has slashed its drilling pace in the West Texas overthrust and taken a large write-down while expressing encouragement at the potential of the most recent of the three thrusts discovered.

SandRidge is running nine rigs companywide, including six in the WTO, compared with 26 in the WTO in the 2008 fourth quarter and a high of 47 companywide in the 2008 second quarter.

The company recorded a pretax, noncash impairment charge of $1.86 billion against the carrying value of its gas and oil properties for the last quarter of 2008.

The 5.7 tcfe of net proved, probable, and possible reserves in the company's Pinon holdings are almost totally in the Dugout Creek and Warwick thrusts (see map, OGJ, Nov. 28, 2008, p. 34).

Frog Creek, the most recent of the three to have commercial production, appears on 3D seismic to be similar in size to the other two thrusts. Recent production tests yielded methane with less than 3% carbon dioxide that the company believes can be developed at or below its current Pinon field finding costs.

Frog Creek's potential is in the Caballos chert at 3,500-5,500 ft.

The Big Canyon A 121-1A exploratory well 25 miles east of Pinon field is encouraging for future exploration because it tested 225 Mcfd of gas with only trace amounts of CO2. It went to a total depth of 16,847 ft and cut 543 ft of chert, a thickness comparable to Pinon field reservoirs but less fractured than at Pinon.

Estimated ultimate recovery from the Warwick Caballos reservoir increased in 2008 to 7.5 bcfe from 7 bcfe of total wet gas with an average 55% CO2. SandRidge has identified 1,265 locations to be drilled.

The company noted that it has drilled less than 15% of its nearly 700,000 contiguous acres in the WTO.

Related Articles

Fieldwood to acquire gulf assets from SandRidge for $750 million

01/07/2014

Fieldwood Energy LLC has purchased certain offshore Gulf of Mexico and onshore Gulf Coast assets from SandRidge Energy Inc. for $750 million.

Forest Oil to sell Permian basin assets

12/03/2009 Forest Oil Corp. of Denver agreed to sell its remaining Permian basin properties for $800 million to SandRidge Exploration & Production LLC.

SandRidge to acquire Crusader Energy Group

09/23/2009 SandRidge Energy Inc. said it will buy bankrupt Crusader Energy Group Inc. for $230 million, no more than $85 million of which will be cash. Both a...

More West Texas Overthrust exploration set

12/11/2008 Cantex Energy, in partnership with Big Canyon Energy, signed an exploration and development agreement with Slawson Exploration covering the Big Can...

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