Heavy oil production starts at Chetopa field

MegaWest Energy Corp., Calgary, has begun oil production at its demonstration project in Chetopa field, a nonconventional oil development covering 392 acres in Labette County in southeastern Kansas.

Angel White
Associate Editor

HOUSTON, June 25 -- MegaWest Energy Corp., Calgary, has begun oil production at its demonstration project in Chetopa field, a nonconventional oil development covering 392 acres in Labette County in southeastern Kansas.

The company expects to recover 150,000 bbl of heavy oil from the 15-acre project using thermal recovery. Production currently averages 30-50 b/d from four producing wells. Over the next 3-4 months, this rate is expected to ramp up to 250-300 b/d.

The producing sandstones are analogous to the Bluejacket and Warner sandstones in Missouri, MegaWest said.

The project includes 10 injector sites with twin injectors—one installed above the shale and the other below it, said MegaWest Pres. and Chief Executive Officer George Stapleton.

Of the 20 injector wells in a 10½-acre pattern, the company said 19 are operational. Average depth is 125 ft.

There are 30 production wells in the thermal recovery project. The 26 producers not yet on line are expected to come on stream "as the steam injection operations progress," said David Sealock, vice-president, corporate services.

MegaWest plans to build a natural gas fuel pipeline by October to facilitate a switch to natural gas from motor oil in the steam generator and therefore reduce the project's fuel cost, which amounts to about 66% of total project expenses.

The company has allocated $345,000 of its 2007 budget to the Chetopa development, which is expected to ultimately recover 900,000-1 million bbl of oil, Stapleton said.

The company also has plans to start pilot projects in its other holdings in Kentucky, Texas, and Missouri, he said.

MegaWest has a 100% interest in Chetopa field.

Contact Angel White at angelw@ogjonline.com

More in Drilling & Production