The SCOOP play otherwise called the South Central Oklahoma Oil Province play includes mineral rights located within the state’s Anadarko Basin. The SCOOP play extends its reach throughout the crude oil and gas heavy counties of Garvin, Grady, Stephens, Murray, and Carter counties.
The SCOOP play targets Devonian to Mississippian-aged Woodford Shale. The Woodford Shale is a silica and highly organic-rich black shale that was deposited about 320 million to 370 million years ago.
In order for these operators to begin crude oil production or drill for natural gas production, they must first make an offer for a lease. This offer typically includes a lump sum upfront paired with a specific royalty percentage which explains what oil and gas royalties percentage will be paid if any wells are completed during the lease term.
The STACK play includes mineral rights located within the Anadarko Basin area of Oklahoma. STACK is derived from “Sooner Trend (oil field), Anadarko (basin), Canadian and Kingfisher (counties).”
The majority of the play is located across (Canadian and Kingfisher as the core counties) and Blaine, Major, and Garfield counties. Unlike Plays such as the Eagle Ford, Bakken, and Granite Wash, the STACK is not a geological formation, but a geographic referenced area.
The Sooner Trend Field has produced nearly 500 million barrels of oil since its discovery in 1945. Newfield pioneered the dry-gas Woodford-shale play in 2003 in the western Arkoma Basin (while natural gas prices were above $6 per unit and oil prices were below $35 per barrel), east of its current, liquids-rich Woodford play in the Anadarko Basin.
It has more than 170,000 net mineral acres prospective for Woodford in its Stack play and more than 150,000 net prospective for the overlying Meramec. It also has some 75,000 net acres in the Scoop play.
The Merge and its mineral rights lay between the prolific STACK (Sooner Trend, Anadarko, and Canadian and Kingfisher [counties]) and SCOOP (South Central Oklahoma Oil Province) plays, effectively tying them together.
Privately funded Citizen Energy, formed in 2012, drilled the Merge discovery well in September 2015 and 18 delineation wells before significant competitor interest emerged. The discovery, made by the Governor James B. Edwards well in the Sycamore formation, was Citizen’s first company well.
As in the SCOOP and STACK, the production column of the Merge area contains minerals with multiple stacked targets. “This is a completely charged Mississippian column sitting on top of an actively generating Woodford source rock, a 2,200-foot continuous hydrocarbon charge from Upper Devonian to Middle Mississippian,” Augsburger says.
Citing 11,000-13,000 psi bottom-hole pressures and pressure gradients exceeding 0.8 in Citizen’s RLP No. 2A well (the deepest STACK well drilled so far) and the Anderson Half No. 1-30-19XH well (the deepest well Continental Resources has drilled to date in STACK in a subplay it calls Deep STACK, where the Meramec is encountered at depths of at least 13,000 feet), Augsburger points out that the thickness of the productive column and pressures at depth indicates a large resource in place in the STACK/SCOOP/Merge plays area. “This truly is an enormous resource,” he offers.
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In some cases, mineral owners in these basins may decide to sell their Oklahoma minerals before wells are drilled, or before receiving royalties on new wells. Investors interested in working interests, royalties, or minerals will typically contact sellers during drilling and before division orders are issued in order to create the most value for both parties.
Without having the “mineral scoop” like many investors it’s tough for an Oklahoma & Texas mineral owner to know if they should sell or not and what their acreage is worth on the open market. This is precisely why we created www.redriverhub.com as the first safe and secure mineral exchange for owners in Oklahoma and Texas interested in selling to create maximum value. Signing up is free, and there is no obligation for our customers to sell.
Production in the SCOOP-STACK recently hit 2-year highs as crude prices climb out of what had been a record-breaking downturn due to economic tightening surrounding COVID-19.
This makes sense because operators are currently looking to tame risk, and as they begin to deploy capital they are increasingly seeking proven and reliable acreage to develop as opposed to wildcatting and looking for new discoveries in unproven plays. If commodity prices continue to march upward and hold above $80 per barrel I expect we will see the rig count continue to increase in the stack plays.
Record-setting prices as of late have lifted operating margins for Oklahoma drillers across the board, with internal rates of return in the state hitting historic highs in March 2022. In the liquids-rich STACK basin, half-cycle, post-tax IRRs jumped to about 57% in March. In the SCOOP, returns are now estimated at around 51%, according to a recently published analysis from S&P Global.
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