Apache Texas Panhandle Canyon Wash oil play grows

By OGJ editors

Apache Corp. has completed five of six initial vertical exploratory tests as oil producers in the Canyon Wash play in the northern Texas Panhandle and has leased or purchased 96,000 net acres in the 200 sq mile Bivins Ranch.

Apache developed the early drillsites from a 64 sq mile 3D seismic survey. The company has shot a 244 sq mile 3D survey over the rest of the acreage with final processing expected in the first quarter (OGJ Online, Sept. 12, 2011). Ten more wells are scheduled during 2012.

The acreage is in the Whittenburg trough north and northwest of Amarillo in Hartley, Oldham, Potter, and Moore counties. It lies south of the sprawling Panhandle dolomite field, north of two 25-well Canyon Wash fields, and north of the Palo Duro basin. Apache operates all leases, most with 73.5% working interests.

First 30-day well rates are Bivins-LIT 3-2, 1,001 b/d and 839 Mcfd of gas fom 80 ft of pay; Bivins-LIT 28-2, 315 b/d and 123 Mcfd from 140 ft of pay; and Bivins-LIT 115-1, 175 b/d and 97 Mcfd from 231 ft of net pay; of production. Bivins-West 219-2 averaged 107 b/d and 42 Mcfd from 50 ft of pay in 21 days, and Bivins-LIT 4-3, on production less than a week, is making 137 b/d and 105 Mcfd from 150 ft of pay.

Apache said, “The Bivins Ranch acreage play is part of Apache’s stepped-up program to explore in underdeveloped areas--beyond existing operations--that can benefit from Apache’s technical expertise and financial capacity. Prior to Apache’s recent activity, just 21 wells were drilled on the block, about 100 miles west of Apache’s Anadarko basin properties.

Robert Johnston, Apache’s Central Region vice president, said, “Advances in horizontal drilling and multistage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

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