By OGJ editors
HOUSTON, Apr. 10 -- Houston independent Apache Corp. said the three horizontal wells it drilled in the Ootla shale play in northeast British Columbia this winter are producing from the Muskwa shale through Apache's Missile gas plant.
The three wells tested at rates of 8.8 MMcfd, 6.1 MMcfd, and 5.3 MMcfd. The Ootla area lies 60 miles from Fort Nelson, BC.
"Although we are still in the early stages of understanding the full scope of this play, these three wells help validate our view that Ootla has the potential to be one of the larger shale gas accumulations in North America," said G. Steven Farris, Apache's president and chief executive.
Apache began acquiring acreage in the area in 2000 and completed the first producing well from the Muskwa shale during the 2005 winter season. Apache and EnCana Corp. have formed an area of mutual interest controlling more than 400,000 acres at the center of the play. Apache's net interest is 207,000 acres.
The play is sparsely drilled, with Apache and EnCana accounting for about half of the wells to date. EnCana has drilled, but not yet completed, two horizontal wells in the area and is drilling a third well. Apache performed 18 fracture stimulations in its three horizontal wells, pumping a total of 7.8 million lb of sand and 280,000 bbl of water into the formation.
"While it will take significant investment in infrastructure to unlock this play, we estimate the gas resource potential at Ootla could be in the range of 9-16 tcf net to Apache's interest," Farris said.
Other independents have smaller leaseholds, and the total area under lease is estimated at 600,000-700,000 acres (OGJ, Mar. 24, 2008, p. 40).
EOG Resources Inc., Houston, with 140,000 acres in the play, earlier estimated 70 tcf of gas in place in the shale, of which a net 6 tcf seem recoverable. Gas in place in the Muskwa on EOG lands averages 318 bcf/sq mile, 2.5 times that of the Barnett shale in Johnson County, Tex., in the Fort Worth basin south of Fort Worth.
EOG said its land is in the richest gas-in-place portion of the play, where the Muskwa is half again as thick as its thickest Barnett shale. Muskwa is described as geologically less complex than the Barnett, with equivalent permeability of 230 nanodarcies, equivalent 4% gas-filled porosity, 2.8% vitrinite reflectance, better silica content at 65%, and no water. Moreover, the Muskwa is reported to have continuous gas thicknesses in the upper and lower parts of the formation, which will smooth completions.
Other participants in the play include Nexen Inc., Devon Energy Canada, and Crew Energy Inc., Calgary. Storm Ventures International Inc. and Storm Exploration Inc. were pursuing acreage in late 2007, and the province was scheduled to offer more leases in March and April.
