Oklahoma Woodford play seen adding rigs

July 28, 2006
The number of rotary rigs drilling in southeastern Oklahoma's Devonian Woodford shale gas play is poised for a jump in the next 2 years if positive well results continue, said one of the play's main operators.

By OGJ editors
HOUSTON, July 28 -- The number of rotary rigs drilling in southeastern Oklahoma's Devonian Woodford shale gas play is poised for a jump in the next 2 years if positive well results continue, said one of the play's main operators.

The western Arkoma basin play currently commands 15 rigs, said Newfield Exploration Co., Houston. Newfield operates 6-7 rigs. XTO Energy Inc., Fort Worth, which acquired Antero Resources Corp. in 2005, Devon Energy Corp., and other operators run the rest.

Newfield alone plans to average 17-18 rigs in 2007 and in 2 years could expand to as many as 30 rigs. Still acquiring acreage, Newfield hiked its 2006 drilling plan to 75 wells, of which 60 will be horizontal (OGJ Online, Mar. 23, 2006).

The company reported an initial flow as high as 5 MMcfd of gas limited by surface facilities at its most recent horizontal completion, which had a 3,500-ft lateral in the shale. Newfield's previous laterals were 2,500 ft long. Cost of the extra 1,000 ft was $700,000.

Newfield is striving to drop drilling costs to $3 million/well, and its last 6 horizontal wells were drilled and completed for less than $4 million. It might try a multilateral well by yearend.

The company, which has 14 horizontal Woodford wells on production, expressed encouragement with initial rates of more than 3 MMcfd at 6 wells, 2-3 MMcfd at 6 other wells, and at or below 1.5 MMcfd at 2 others. The data confirm company estimates that ultimate recoveries will average 2.75 bcf/well, Newfield said.

Production in the overall play is 50 MMcfd of gas, including 30 MMcfd net to Newfield.