EnCana to bank heavily on unconventionals

By OGJ editors
HOUSTON, May 27 -- Unconventional gas and oil plays represent the future for EnCana Corp. and the North American oil and gas industry, EnCana said May 27.
EnCana has established a portfolio of nine gas and four enhanced oil resource plays, said Jeff Wojahn, executive vice-president and president of EnCana's USA division. Wojahn and other principals discussed its positions in the high-pressure, high-temperature established Jurassic Deep Bossier sand and emerging Haynesville plays in East Texas and North Louisiana.

Gas deliveries have grown to more than 7 bcfd in January 2009 from 2 bcfd in January 2006 from the Barnett, Fayetteville, Woodford, and Haynesville shales alone, EnCana said. Of that, the Barnett supplies about 5 bcfd.

North America consumes about 25 tcf/year of gas, and close to half of that comes from unconventional reservoirs including tight sands, shales, and coalbed methane, the company noted.

EnCana, like many operators, has a 2009 priority to demonstrate the commerciality of its Haynesville shale acreage and hone its strategy to drill and prove its holding. EnCana has diverted $290 million of its 2009 budget to retain land in the Haynesville play, most of it in the company's core area in Red River and De Soto parishes.

Efforts to prove and hold acreage are likely contributing to the current rig count of 75-80 rigs in the Haynesville, EnCana said. Nevertheless, only a few Haynesville wells have more than 6 months of production history.

The Deep Bossier play in East Texas has the best returns in EnCana, and the Haynesville could become the company's leading resource play, said Paul Sander, vice-president, Midcontinent business unit.

Deep Bossier activity in 2009 centers on Hilltop South and West fields, where the formation is 2,000-3,000 ft deeper than at Amoruso field, where development continues. It is also completing Reagan sands deeper in the Jurassic section.

EnCana, with nine rigs running, is also exploring adjacent areas and has identified 250 locations, enough for 6 years of drilling.

In the Haynesville, EnCana has divided its drilling staff into teams each responsible for a particular section of hole. The company has drilled 16 horizontal Haynesville wells.

EnCana has stepped up efforts to multiply and enlarge its Haynesville frac stages after noticing a direct relationship between the volume of proppant placed and initial flow rates and estimated ultimate recovery.

The company has moved from 1 million lb of proppant and eight fracs/well initially to more than 3 million lb of proppant in 12 stages.

The Haynesville could rival the quality and scope of the Barnett, Sander said.

EnCana also plans to exploit the Mid-Bossier shale. Just above the Haynesville in Louisiana, it is 180 ft thick with gas in place and development costs similar to that of the Haynesville. EnCana didn't specify EURs for the Mid-Bossier but said they could be comparable to those in the Haynesville.

Almost 15 bcfd of gas pipeline capacity is to be built in the Texas Midcontinent and Gulf Coast region in 2007-12, said Renee, Zemljak, vice-president, USA midstream and marketing. EnCana holds sufficient downstream capacity for all of its gas, she said.

Related Articles

NOIA president urges BOEM to hold Aug. 19 lease sale as scheduled

08/14/2015 The US Bureau of Ocean Energy Management should ignore a call by groups to delay US Outer Continental Shelf Lease Sale No. 246 and hold it on Aug. ...

USGS assesses undiscovered resources in Cotton Valley Group

08/14/2015 The Cotton Valley Group, which extends from South Texas to the Florida panhandle across the US Gulf Coast, could contain undiscovered mean volumes ...

BOEM to prepare SEIS for 2017 Central Gulf of Mexico lease sale

08/14/2015 The US Bureau of Ocean Energy Management plans to prepare a supplemental environmental impact statement for the final Central Gulf of Mexico Planni...

Lundin strikes oil on Luno II North prospect

08/12/2015 Lundin Petroleum AB, through its wholly owned subsidiary Lundin Norway AS, has discovered a gross 23-m oil column with its 16/4-9 S exploration wel...

Lower oil prices have strengthened the role of unconventional in upstream portfolios

08/12/2015 When oil prices went into free fall in the fourth quarter of 2014, the question on everyone's mind was whether US unconventional development would ...

Dakota Prairie Refining sells diesel, mulls expansion

08/12/2015 Dakota Prairie Refining LLC officials hosted a grand opening in late June to celebrate the start up of the first US refinery in about 40 years.

Marathon's MPLX to buy MarkWest Energy

08/12/2015 Marathon's oil pipeline MPLX LP agreed to acquire MarkWest Energy Partners in a partnership that will result in the largest gas processor and fract...

Volker: Whiting Petroleum rigged to run and prosper at $50-60/bbl oil

08/12/2015 Whiting Petroleum Corp. has positioned itself to make money at $50-60/bbl oil, said James Volker, Whiting chief executive officer, adding he believ...

Northwest Territories, NEB assess potential of Canol shale oil reservoir on Mackenzie plain

08/12/2015 The Devonian Canol shale in Canada's Northwest Territories holds an estimated 145 billion bbl of oil in place while the thinner Bluefish shale cont...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

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