By OGJ editors
HOUSTON, July 18 – The Buffalo Creek 1-17 well in Beckham County, Okla., has produced more than 60 bcf of gas since being turned to sales in December 2002, one of only six wells in the state to have yielded that much gas, said Chesapeake Energy Corp., Oklahoma City.
The well was drilled to 21,000 ft and produces from the Cunningham sand of the Pennsylvanian Springer formation. It averaged 41 MMcfd the first 2 years and still makes 8 MMcfd.
Chesapeake said it is running three rigs drilling for deep Springer gas in the Anadarko basin and believes that its 75,000 acres will accommodate at least 185 more wells.
The Buffalo Creek 1-17 well cost $8.5 million to drill and complete and $1.4 million in operating expenses since then. Gross revenue of $320 million includes $65 million paid to royalty owners and $15 million paid in state severance tax. Net cash flow to the working interest owners totals $230 million or $5.35/Mcfe, or 27 times the drilling/completion cost.
Chesapeake noted that it has been a pioneer deep driller in conventional formations using 3D seismic in the Anadarko Basin.
“The success of the Buffalo Creek 1-17 well initiated a process almost 10 years ago that has now led to Chesapeake owning the largest leasehold position in the Anadarko basin. This industry-leading leasehold position has proved to be exceedingly valuable as unconventional plays such as the Granite Wash, Cleveland, and Tonkawa plays have emerged in areas in and around our traditional strongholds of conventional Anadarko basin production.”
Chesapeake said it operates four of the six most productive gas wells ever drilled in Oklahoma.