Record Barnett HC content seen in combo play

Alan Petzet
OGJ Chief Editor-Exploration

HOUSTON, Dec. 2 -- Hydrocarbon content in the thickest part of the Mississippian Barnett shale combo play in North Texas is so great that even 2-3% recovery is highly economic, said EOG Resources Inc., Houston.

Barnett thickness reaches 1,500-1,700 ft thick in the eastern part of the combo play’s 90,000-acre core area in eastern Montague and western Cooke counties on the north side of the Fort Worth basin. There, EOG estimates the formation contains 70 million bbl of oil and 175 bcf of gas in place/sq mile, Loren M. Leiker, senior executive vice-president, exploration, said in late November.

“Hydrocarbons in place [are] more than anywhere else really in the world that we’ve seen so far” because the formation is so thick and the hydrocarbon charge so rich, Leiker said in describing EOG as the only material participant in the combo play.

EOG plans to run 12 rigs and drill 225 combination play wells in 2010. It has proven more than 50 million boe recoverable to date and had booked 8.4 million boe of reserves by the end of 2008.

EOG’s position in the Barnett gas play is “going fine,” Leiker said, with 650 drillable locations in Johnson and Hill counties of the company’s 1,000 remaining gas sites. While growing its gas revenue base modestly, EOG is emphasizing liquids the next few years to improve its flexibility to capitalize on whichever hydrocarbon type is more economically desirable.

EOG has drilled 100 wells in 3 years in the combo play, with initial potential rates at 300-1,000 b/d of oil, 130 b/d of natural gas liquids, and 1-2 MMcfd of gas, but it has had to climb a learning ladder, Leiker said. The early mistake was trying to apply horizontal drilling and fracturing technology learned in the Barnett gas areas to basically the same rock type in the oilier combo play.

Leiker wouldn’t detail EOG’s technology progress, but he said the company has convinced itself—with no more than 1.5 years on production in its oldest combo area—of its ability to sustain the play’s long term profitability and will soon have enough production history to release publicly.

EOG holds 210,000 net acres in Montague and Cooke counties and 144,000 acres in Clay and Archer counties. Of that, 175,000 acres are underlain by a competent Viola bottom seal.

Leiker said the Barnett is so thick in the eastern 10-15% of the core area that EOG can get horizontal-caliber production and reserves from cheaper vertical wells. The company is pursuing both horizontal and vertical development depending on the formation’s thickness in each sector.

An eastern core area vertical well will recover 220,000 boe at $2.2 million or a 70% rate of return, and horizontals will tap 280,000 boe at $3.3 million or 60%.

EOG’s estimates of ultimate recovery are increasing with experience. In November 2009 compared with March 2008, the company estimated it will recover 78,000 bbl of oil/well, up from 75,000; 94,000 bbl of NGL, up from 34,000; and 674 MMcf of gas, up from 260 MMcf. The amounts are net after royalty.

Contact Alan Petzet at alanp@ogjonline.com.

Related Articles

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

Lytle named to Canada’s National Energy Board

06/30/2015

Murray Lytle has been appointed as a full-time member of Canada’s National Energy Board for a term of 7 years, effective July 6.

OGJ Newsletter

06/29/2015

Security through change

06/29/2015

At the start of this month the US Army published its "Energy Security & Sustainability (ES2) Strategy" report. 

API, other groups urge EPA to reconsider biofuel quotas

06/29/2015 The US Environmental Protection Agency should reconsider its recently issued biofuel quotas because they serve the fuel ethanol lobby's interests i...

Mubadala starts production at Nong Yao in Gulf of Thailand

06/29/2015 Mubadala Petroleum, Abu Dhabi, started production on June 17 from its Nong Yao oil field in the G11/48 concession of the southern Gulf of Thailand.

New king reshaping Saudi oil industry; extent still unclear

06/29/2015

A new ruler is making important changes in the state-run petroleum industry of the world's most influential oil-producing nation.

Junex provides update on Galt oil property drilling

06/26/2015 Junex Inc., Quebec City, Que., said it is finalizing construction of the surface drilling pad for the Junex Galt No. 5 horizontal well that the com...

Lundin spuds three wells offshore Norway

06/24/2015 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, spudded three wells: its second Alta appraisal well in the Barents Sea, an appr...
White Papers

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

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
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


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

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


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