Austin chalk wells yield huge flow rates

April 7, 1997
UPR's Deep Giddings Field Area Action [42075 bytes] Cretaceous Austin chalk horizontal drilling and production activity is heating up in Southeast Texas, yielding record U.S. onshore horizontal flow rates, according to operators. In the deep Giddings field area of Washington County, Union Pacific Resources Group Inc. (UPR), Fort Worth, and Chesapeake Energy Corp., Oklahoma City, have drilled and completed perhaps the largest flowing horizontal gas wells ever drilled onshore in the U.S., the
Cretaceous Austin chalk horizontal drilling and production activity is heating up in Southeast Texas, yielding record U.S. onshore horizontal flow rates, according to operators.

In the deep Giddings field area of Washington County, Union Pacific Resources Group Inc. (UPR), Fort Worth, and Chesapeake Energy Corp., Oklahoma City, have drilled and completed perhaps the largest flowing horizontal gas wells ever drilled onshore in the U.S., the companies said.

UPR disclosed in mid-March its 1 Eberle set an onshore U.S. horizontal well record, flowing in excess of 84 MMcfd-only to be apparently topped weeks later by operator Chesapeake and partner Belco Oil & Gas Corp., New York, disclosing Apr. 2 that their 1-H Brown producer is flowing 100.3 MMcfd.

UPR's production from its Washington County wells has grown almost fivefold in a 2-year period, to a level of 239 MMcfd from 20 operated wells (see map and chart, this page). UPR plans to spend $32 million to drill 14 wells on its 62,000 net undeveloped acre leasehold in the area.

Also in Washington County, Hugoton Energy Corp., Wichita, disclosed 1-H Falls Unit, operated by privately held Reata Oil & Gas Corp., College Station, Tex., was placed on production in mid-March.

And Sonat Inc. unit Sonat Exploration Co. is drilling ahead in 1 Neason to Austin chalk objectives in the downdip extension of Giddings field in Walker County.

Active in the Louisiana portion of the trend, the company recently gauged a significant chalk strike in Vernon Parish.

Chesapeake/Belco monster

The 1-H Brown, a single lateral, began chalk production Mar. 30. It's currently flowing 100.3 MMcfd through a 48/64-in. choke with 5,025 psi flowing tubing pressure.

The well was drilled to a true vertical depth of 14,600 ft, and lateral displacement totaled almost 3,900 ft.

"Based on initial flow rates, this is believed to be the largest horizontal gas well ever drilled onshore in the U.S.," Belco said.

"The 1-H Brown well reaffirms our belief that the deeper Giddings area has the potential for producing some of the most productive wells drilled anywhere in the U.S.," said Belco Chairman and CEO Robert A. Belfer.

Chesapeake owns a 67% working interest in the well, and Belco has a 30% working interest. The remaining interest is held by Chesapeake officials individually, Belfer said.

Belco owns or controls interests in about 773,000 gross (517,000 net) undeveloped acres along the Texas and Louisiana portions of the trend.

Operator Chesapeake on Apr. 1 also spudded an immediate southwest offset to the 1-H Brown, 1-H Wackman. Belco has an option to obtain a working interest of as much as 45% in wells drilled in an area of mutual interest held with Chesapeake, officials said.

UPR's big gasser

The 1 Eberle, 100% owned by UPR, flowed 84.7 MMcfd of gas from Austin chalk perforations.

In mid-March, UPR said the 1 Eberle's production rate eclipsed the previous record set by UPR's 1 Neumann Unit.

Its 1 Neumann Unit, producing since August 1996, tested at an initial rate of 50 MMcfd. It continues to produce at a rate of 48 MMcfd, and its cumulative production totaled more than 11 bcf in the first 7 months of production.

UPR is currently drilling the 2 Neumann offset, expected to be completed in May. It has a 100% working interest in both Neumann wells.

Directly offsetting 1 Neumann is 1 Emma Bell, currently producing 42 MMcfd. The well, 90% owned by UPR, has been on production for 4 months and has yielded a cumulative 4.5 bcf so far.

Other significant completions for UPR include 1 Schwickert, which was completed earlier in March, and the 2 Bluebell Unit, completed last November in the chalk and recompleted recently in the Georgetown.

The well has cumulative chalk production of 2.7 bcf and is now flowing at a combined rate of 39 MMcfd from the chalk and Georgetown formations.

Reata/Hugoton work

The Reata-operated 1-H Falls Unit has been producing a sustained average 22.5 MMcfd since coming on stream.

Initially, the well was drilled by San Antonio's Sage Energy. Reata reentered and recompleted the well, which is producing from an interval at 13,594-15,709 ft through a 26/64-in. choke with 5,300 psi flowing tubing pressure.

Hugoton has a 25% working interest in 1-H Falls Unit and a 50% working interest in about 20,000 acres.

About 20% of Hugoton's 1997 drilling budget is earmarked for Austin chalk trend drilling in both Texas and Louisiana.

During 1996, the company drilled 66 wells and completed 56 for an 85% success rate, with the majority of the wells drilled in second half 1996.

Sonat's Texas action

The Sonat-operated 1 Neason is the company's first horizontal chalk well in the downdip extension of Giddings field in Walker County.

Sonat holds a 60% working interest in a lease block totaling about 52,000 acres in the area.

In its so-called eastern chalk trend area that includes the Louisiana portion of the trend in far western Louisiana, the company holds interests in about 520,000 acres and 120 producing wells, including 90 that are operated by Sonat.

Gross operated production from the area totals about 17,000 b/d of oil equivalent.

Louisiana chalk success

Sonat recently disclosed results of its first operated well in the Hurricane Branch area in the eastern chalk area in Vernon Parish, La.

The 1 Scobee, drilled to 14,100 ft TVD and 7,250 ft horizontally, flowed on test 3,840 b/d of oil and 9.5 MMcfd of gas with a flowing wellhead pressure of 3,225 psi.

The Hurricane Branch area is between Burr Ferry and Master's Creek areas (OGJ, Dec. 23, 1996, p. 21).

Sonat has interests in about 130,000 acres of leases and 20,000 acres of 100%-owned mineral rights in the area and operates about 75,000 acres. Average working interest is 70%.

Sonat said the 1 Scobee had the highest initial hydrocarbon production rate of any Sonat-operated well in the entire eastern chalk trend area.