The West Texas Intermediate (WTI) oil futures are currently trading at around $48 per barrel this morning. Baker Hughes Inc. reported another record fall in the U.S. rig count (number of rigs searching for oil and gas in the country) from the previous week. Rigs engaged in exploration and production in the U.S. totaled 406 in the week ended May 13, 2016. This was down by nine units from the previous week and touched an all-time low.
Rig Count – Oklahoma Counties – Most Active
Located in in the over-pressured oil window of STACK, Blaine County is currently experiencing some of the best well completions in the state. Continental Resources reported yesterday on its Verona well, a multi-section unit comprising Sections 14 & 23 of 16N-10W.
CLR said the Verona is located just east of the Company’s Ludwig unit where the firm is drilling an eight-well density pilot, its first in the STACK play. Results from the Ludwig density pilot aren’t expected to be released until the Q3 2016 earnings release.
The Verona well flowed at an initial 24-hour test rate of 3,339 barrels of oil equivalent a day, comprised of 2,345 barrels of oil or 70% of production and 6.0 million cubic feet of 1,370-Btu natural gas.
The company said the Verona is producing from the Meramec reservoir through a 9,700-foot lateral at a flowing casing pressure of nearly 2,400 psi on a 34/64-inch choke.
Blaine County has 228 active, HZ producing wells, mostly located in the Southern and Eastern portion of the county.
Of the 228 HZ wells with production being reported in this particular county, here are the number of producing wells, sorted by formation. You can see that the majority have been drilled and completed in the Woodford formation.
Since May 2009, this grouping of wells has produced nearly 3.45 million BO and 263 Bcf of natural gas. The most active operator is Devon Energy, followed by CLR.
There have been 99 new final spacing orders issued for the county in 2016 alone and CLR leads the pack with 47. You can see on the map where much of this has spread to the Western portion of the county. This spacing activity, along with the recent poolings filed with the Oklahoma Corporation Commission, is a sure-fire indicator that more drilling is on the way. CLR has 171,000 net acres of leasehold in the STACK.