Wyoming horizontal test gauges Frontier gas

A group led by American Oil & Gas Inc., Denver, gauged gas-condensate at rates above 20 MMcfd from Cretaceous Frontier while drilling at an exploratory test 3 miles northeast of Douglas, Wyo.

Jul 6th, 2007

By OGJ editors
HOUSTON, July 6 -- A group led by American Oil & Gas Inc., Denver, gauged gas-condensate at rates above 20 MMcfd from Cretaceous Frontier while drilling at an exploratory test 3 miles northeast of Douglas, Wyo., in the southernmost Powder River basin.

The group drilled the Sims 15-26H well, in 26-33n-71w, Converse County, to 12,840 ft measured depth including a 1,165 ft lateral in Frontier and set 4½-in. liner with sliding sleeves and packer assemblies to depth.

Frontier was drilled slightly underbalanced, and gas was periodically produced into a pipeline at rates up to 20 MMcfd. Gas could be processed at a Kinder Morgan Inc. plant 1.5 miles away.

A 2,500-ft lateral was intended, but encountering multiple fracture systems and the high gas flows convinced the participants to cease drilling and set the liner, American said.

The well, American's third attempt to tap the Frontier in the area, was shut-in in late June. Sustained natural production is to start in several weeks, and as many as five fracs will be applied later if needed.

The well is 2 miles east of Fetter field, discovered in 1979, where other operators have production from Frontier and Cretaceous Niobrara.

Sims 15-26H is the first of a three to four-well program at Fetter funded by Red Technology Alliance (RTA) and project-managed by Halliburton Co.

American is carried through tanks for a 23.125% working interest in each well and owns 92.5% working interest in 50,000 net acres surrounding Fetter field. RTA will earn a 25% working interest in the undrilled acreage upon completing the initial drilling program. North Finn LLC, private Casper, Wyo., independent, will retain 5.625% interest.

Following well completion, RTA will reenter and horizontally drill the Frontier at American's Hageman 16-34 wellbore, drilled in 2005 to 11,332 ft, above the Frontier, and suspended due to rig issues.

Meanwhile, the companies plan to drill a vertical well to test the Steele, Niobrara, Frontier, Mowry, and Dakota formations using multicompletions with stage frac techniques that are being successfully employed in other stacked reservoir fields with characteristics similar to Fetter, American said.

American and RTA signed a participation agreement to drill a 14,000-ft test on American's West Douglas prospect in Converse County west of Fetter, spudding before October 2007.

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