Overton County led recent Tennessee oil action

Ronald P. Zurawski
Tennessee Division of Geology
Nashville

Tennessee's oil and gas industry improved in two areas and declined in four others in 1996. Average oil and gas prices per unit increased, while the number of well completions, permitting, and oil and gas production declined.

Permits fell

Oil and gas well permitting decreased more than 7% in Tennessee in 1996. The state issued 86 permits versus 93 in 1995 (see table).

Nine counties had permitting activity in 1996, down from 12 counties in 1995. With nearly 62% of the permits issued in 1996, the Eastern Highland Rim (Overton, Pickett, Clay, and Jackson counties) continued to overshadow the Cumberland Plateau in terms of permitting.

The state's most productive area (Claiborne, Scott, Morgan, and Fentress counties) decreased somewhat, with slightly less than 14% of the permit total. Three permits were issued in the Eastern Overthrust area but none in West Tennessee.

Well completions

The Tennessee Division of Geology classified 104 oil and gas tests during 1996. This is a 4.5% decrease from the 109 classified in 1995.

The 1996 completions included 59 new field wildcats, 39 development wells, and six outposts. There were 13 oil wells, 16 gas, one dual completion, and 74 dry holes. The overall success rate was nearly 29%, down from 31% in 1995.

Success rates were more than 37% for new field wildcats, 56% for development wells, and zero for outposts. Total drilling footage reported was 192,536 ft, down from 215,048 ft in 1995.

Two oil and gas tests with larger than average IPs were completed last year.

The NCM Energy 1 J.B. King, a development well in Parker-Etter field in Pickett County, had an IP of 45 b/d of oil from the Nashville and Knox groups at 353-358 ft and 1,548-55 ft, respectively. Average production from September through December 1996 was 11.19 b/d, with cumulative production of 1,365 bbl.

The second significant completion is the Daniels Unit 1, acquired by Larry Daniels in January 1996. This is a new field wildcat in Overton County. It tested at 700 Mcfd of gas from the Nashville Group at 594-605 ft, 653-659 ft, 712-716 ft, 841-847 ft, and 856-860 ft.

Since it is being used for domestic purposes only, no record is kept of cumulative production. However, the well stabilized at 120 psi of casing pressure after a 65 hr test on a 1/2 in. choke, so it is still considered worthy of mention as a significant completion.

Oil production

Oil production totaled 380,750 bbl during 1996, down less than 1% from 384,244 bbl in 1995 and continuing a decline from Tennessee's all-time high of more than 1 million bbl in 1982.

The average price rose to $19.28/bbl, resulting in total value of more than $7.3 million, up from $5.8 million in 1995, when the average was $15.10.

Eleven counties reported production, same as in 1995. Overton County replaced Claiborne as the leader, with 100,943 bbl or more than 26% of the state's total. Claiborne was second with 78,429 bbl, and Scott County remained third with 73,813 bbl.

A.L. Young's 3 Wayne Brown in Miller Mountain field in Overton County was the state's most productive well last year. It made 65,048 bbl in 1996. Cumulative production is 104,039 bbl from the Nashville and Stones River groups since August 1994.

Alamco's AT-102 J.M. Huber in Days Chapel field of Claiborne County was second with 10,694 bbl in 1996. Cumulative production is 91,407 bbl from Monteagle since January 1990.

Third was Alamco's AT-6 J.M. Huber in the same field with 6,078 bbl. Cumulative is 132,367 bbl from Monteagle since December 1981.

Fourth was Miller Services' 1 Stanley Vaughn Unit in Miller Mountain field of Overton. It produced 5,535 bbl in 1996. Cumulative is 31,580 bbl from the Stones River Group since October 1993.

Tennessee cumulative oil production stands at more than 17.4 million bbl.

Gas production

Gas production fell 7.1% to 1.69 bcf, down from 1.82 bcf in 1995. The price averaged $2.56/Mcf, up from $1.58 in 1995.

Production came from six counties, one fewer than in 1995.

Claiborne County yielded 749,135 Mcf, more than 44% of the state total. Scott County had 384,261 Mcf, and Morgan County 313,136 Mcf.

The most productive gas wells in 1996 were:

Wiser Oil Co. 1 Teague Heirs et al., Claiborne County, 51,024 Mcf in 1996, cumulative of 592,016 Mcf from Monteagle since January 1990.

Daniel F. Potts 2 Walls Properties Unit, a new field wildcat in Overton County. It flowed 36,765 Mcf in 1996, cumulative 66,455 from Stones River Group since February 1995.

Wiser Oil 1 Henry Hamblin et al., Claiborne County, 31,539 Mcf in 1996, cumulative 243,451 Mcf from Monteagle since September 1991.

Tennessee cumulative gas production is nearly 94 bcf.

Well data, logs

The division added 56 wells to its computer well data base, down from 66 added in 1995.

The data base contains information on 10,316 wells. A complete printout is available for $60. Printouts of selected data categories are also available.

The division is purchasing a large format copier capable of reproducing geophysical logs, oil and gas pipeline maps, well location maps, gravity and magnetic maps, and out of print geologic and topographic maps, among others.