Chesapeake Energy Corp., Oklahoma City, entered into a long-term agreement with Pronghorn Logistics LLC of Denver for frac sand management, logistics, and well site services in Wyoming’s Powder River basin.
Chesapeake in July moved to 5 rigs in the basin, all of which are currently drilling the Turner formation. In this year’s third quarter, 13 wells were placed on production, 8 of which were Turner wells, bringing the total number of Turner wells on production to 24. At the time the company’s third quarter results were reported, the company's best well drilled in the Turner was the Wyoming 36-34-69 B TR 1H, which reached a peak 24-hr average rate of 3,133 boe/d (47% oil) from a 10,246-ft lateral.
Also in that quarter, Chesapeake drilled and completed three successful step-out Turner wells along the western periphery of its acreage position, which yielded peak 24-hr production rates of 1,480-2,725 boe/d with an average oil cut of 82%.
The company continues to experiment with tighter spacing tests and is drilling its second set of wells spaced at 1,980 ft. Additional spacing tests are expected in 2019, as well as move to development pad drilling in the more oil-prone (lower gas-to-oil ratio) portion of the field.
An additional 15 wells are expected to be placed on production in this year’s fourth quarter, with an additional 65-70 Turner wells to be placed on production in 2019. A sixth rig may be added in 2019, which would likely begin to focus on the Parkman and Niobrara formations.