Fidelity touts Utah Cane Creek well test results

The potential of the Pennsylvanian Cane Creek play in the Paradox basin “appears significant,” said Fidelity Exploration & Production Co., a subsidiary of MDU Resources Group Inc., Bismarck, ND.

Fidelity said its Cane Creek Unit 26-2H well tested at a stabilized 647 b/d of oil and 561 Mcfd of natural gas on a 7/64-in. choke with flowing pressure exceeding 3,400 psi. The well is flowing from a short, unstimulated horizontal section. The company said the production rate is being greatly restricted “to manage production operations, gather performance data, and minimize natural gas flaring.”

Fidelity, which owns 75,000 net acres in the basin, drilled the 26-2H well to 8,685 ft measured depth including a 1,945-ft lateral that was cased and subsequently perforated over a 116-ft interval at the end of the lateral.

“While it is too early to establish reserve potential for the well, a well drilled 5 miles to the southeast during the 1960s has produced over 1 million bbl of oil and a well 7 miles northwest drilled in the 1990s has produced over 600,000 bbl of oil,” the company said. “Initial production rates from the 26-2H well are very encouraging; however, further data is required to give a reasonable estimate of ultimate recovery.”

Fidelity’s second horizontal Cane Creek well, the Cane Creek Unit No. 18-1H, has been drilled to 9,272 ft MD including a 1,154-ft lateral. It is to be completed across a 900-ft horizontal interval and should be put on production during May. The Cane Creek Unit is in Grand and San Juan counties west of Moab.

The company plans to drill more Paradox wells in 2012 to further advance the appraisal process and commence the development phase.

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