Newfield Anadarko Granite Wash gas flow grows

By OGJ editors
HOUSTON, July 23
-- Newfield Exploration Co., Houston, has built production from Pennsylvanian Granite Wash in the western Anadarko basin to 112 MMcfd of gas equivalent after starting a horizontal drilling program in late 2008.

Newfield, which entered the area in 2002 with acquisition of EEX Corp., is running three operated rigs in the play and looks to run 3-5 rigs for several years. It holds 20,000 net acres in Stiles Ranch field, Wheeler County, Tex., and 15,000 net acres in western Oklahoma, and about 80% is held by production.

The EEX properties were producing less than 3 MMcfd of gas equivalent, and Newfield drilled nearly 150 vertical wells in 2003-08 to more than 30 Granite Wash horizons at 12,000-15,000 ft. It transferred technology to the play from its successful horizontal program in the Arkoma basin Woodford shale play.

The first seven horizontal wells averaged 22 MMcfd of gas equivalent initial output. For example, Williams 33-7H went on line this week at 21 MMcfd of gas and 570 b/d of condensate from a 3,600-ft lateral.

McCoy 27-7H went on line in December 2008 at 25 MMcfd and 1,900 b/d from a 3,400-ft lateral and has produced nearly 4 bcf.

The 2009 program calls for 14 wells. Drilling and completion costs have averaged $10 million, and the most recent well was $7.4 million. Newfield expects further improvements are expected in lengthening laterals to 3,800-4,600 ft, lower rig rates, and other efficiency gains.

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