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Prominent Activity and
Technology Trends
Devonian Shale Plays
Cabot Corporation reported in a recent news release that
they have drilled and completed five horizontal wells in
their Sissonville Huron Shale (Upper Devonian) project
in West Virginia. "We are encouraged with our progress
in both cost structure and production profiles with this
program. Our production rates have steadily improved
with each well and the cost efficiencies continue to
show progress," said Cabot spokesperson Dinges. The
latest well, the Amherst 24H, was drilled to a measured
total depth of 6,615 feet, including 2,600 feet of
lateral hole (100% WI). It flowed 1.1 MMcf per day after
a four-stage frac at a total cost of $1.5 million. "We
are currently drilling our sixth horizontal well in
Sissonville and will be starting our first well on the
Hurricane acreage by the end of June. Hurricane was one
of our new acreage initiatives mentioned late last year
where we have nearly 130,000 gross acres under lease,"
stated Dinges.
In Range Resource's Pennsylvania Devonian shale play,
where their acreage now totals more than 420,000 net
acres, leasing efforts continue and drilling is
accelerating. To date, 30 vertical and three horizontal
shale wells have been drilled in the play, and 22
vertical wells and two horizontal wells are on
production. Early results indicate an estimated reserve
potential of between 0.6 Bcf to 1.0 Bcf per vertical
well. Plans are to significantly expand shale gas
drilling in this area in 2007 with 68 vertical and
horizontal wells budgeted. To support this effort, Range
has opened a regional office in Pittsburgh, Pennsylvania
to focus on their Devonian shale drilling and production
operations.
Coal Bed Methane Activity
Range Resources recently reported that their Appalachian
division drilled 147 (106 net) wells in its core coal
bed methane, shale gas and tight gas sand properties in
Pennsylvania, West Virginia and Virginia. The division
presently has 16 rigs operating in various project areas
and plans to drill 735 (526 net) wells in 2007. Focus
areas in the first quarter of 2007 included the
continued expansion of their coal bed methane play in
the area of the Nora field in southwestern Virginia. In
2007, plans are to continue to expand operations in the
Nora area by drilling approximately 290 coal bed methane
wells and 65 tight gas sand wells. Subsequent to
quarter-end, Range announced a transaction with
Equitable Resources in which Range has agreed to pay
Equitable $315 million to acquire additional interests
in the Nora field. Along with a 50% interest in the
gathering system, this transaction provides Range a 50%
working interest in all existing and future wells,
including coal bed methane, tight gas sands, shale and
deeper exploratory wells. Range will retain its mineral
and royalty interest over roughly 80% of the 300,000
acre field.
Horizontal Drilling
Appalachian operators continue to include horizontal
drilling in their 2007 drilling plans. Perhaps spurred
on by success experienced by Fortuna in drilling
horizontal wells in the Trenton-Black River plays in New
York, other operators have begun drilling horizontal
wells in the Devonian shale and coal bed methane plays,
and several companies are considering drilling
horizontals in deeper plays like the Huntersville Chert
and Oriskany Sandstone. Horizontal drilling in shale
plays currently is being spearheaded by Range Resources’
(Great Lakes) Marcellus play activity in Pennsylvania,
and Cabot Corporation’s Huron Shale play in West
Virginia.
CDX Corporation continues to develop their coal bed
methane properties in southern West Virginia exploiting
their pinnate drilling technology. In addition, CDX and
several partners drilled horizontal wells in the
Kittanning coal in Barbour County in northern West
Virginia. Additional plans have been announced for a
similar drilling effort in adjacent Taylor County.
Oil and Gas Activity in Michigan in
2007
Oil and
Gas drilling activity in Michigan has been moderate
through the first half of 2007. Michigan has averaged 10
rigs in the field through the first six months of 2007.
In this period operators have completed 23 oil wells,
204 gas wells and 27 dry holes. Gas wells and dry holes
are virtually the same as for the same time period in
2006, but oil wells are three times more than 2006.
Drilling activity and commercial completions are
primarily in three formations.
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Ordovician – St. Peter/Prairie du Chien Sandstone –
deep gas (wells typically drilled to 8,000 to 10,000
feet)
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Silurian – Niagaran Reefs – moderate depth oil and
gas – (pinnacle reefs in Northern and Southern
Michigan are well known, new developments on western
side of Basin is now very active)
A few
other formations that have had strong historic records
of production are now being revived with the application
of 3-D seismic surveying to pinpoint local, overlooked
areas. Recent discoveries in the Devonian – Traverse
limestone in west-central Michigan and the Ordovician –
Trenton/Black River near Albion-Scipio field in Southern
Michigan show the value of local, high resolution 3-D
seismic in finding commercial production in maturely
developed areas. Note: Information compiled by Bill
Harrison, Western Michigan University, from information
published in the Michigan Oil and Gas News, a weekly
industry magazine published by the Michigan Oil and Gas
Association
Oil
and Gas Activity in Illinois
There were a total of 431
wells drilled in Illinois in 2006, 152 were new oil
wells, one was a new gas well and 97 were dry holes. It
is estimated that 245 wells were drilled in the first
half of 2007, 85 new oil wells, five new gas wells and
60 dry holes. Most drilling in Illinois centers on
exploration for oil in Mississippian-age sandstones and
carbonates. Recently there has been increased interest
in Lower Paleozoic reservoirs such as the Devonian
Geneva Dolomite and Dutch Creek Sandstone, Silurian-age
Niagaran patch reefs along the Sangamon Arch, and
Ordovician-age Trenton reservoirs. There has also been
much interest in the Mississippian-age Warsaw carbonates
in Clay, Wabash and Hamilton Counties in Illinois.
The wildcatter of the year
in Illinois was awarded to Ron Lockwood for his
discoveries in Silurian-age Niagaran patch reefs along
the Sangamon Arch in Sangamon County, Illinois. Some of
these wells have been highly productive, the #2L Parks
Community well in Sec. 13- 16N-3W in the Mechanicsburg
Field in Sangamon County had a flowing rate of 1158 BOPD
with 100 BWPD and an offset, the #1L Parks, flowed at a
rate of 451 BOPD.
Coalbed Methane project in
Marion and Shelby Counties in Illinois. BPI Energy
continues drilling in their coalbed methane project.
They first permitted wells for this project in November
2005 and drilled 43 wells in 2006 and have permitted an
additional 40 wells so far in 2007.
New Albany Shale Activity
Confidentiality rules in
Illinois allow operators to keep completion information
confidential for 24 months after a drilling permit is
issued. Information contained in permits is not
confidential. Therefore, a substantial time lag may
exist between the time a well is completed and the time
the Illinois State Geological Survey can release
information. As a result, a large increase in activity
in emerging plays may be evident long before complete
data can be officially released. The New Albany Shale
play is a good example of how these rules impact the
information that we can release. There have been recent
discoveries in the New Albany Shale in Indiana and
Kentucky. Numerous permits have been issued for New
Albany Shale wells in Illinois, we are also aware of
regions in Illinois being actively leased for New Albany
Shale exploration due to contacts with land owners,
however, no information on recently completed wells can
be released. Please contact ISGS staff for addition
information on these topics.
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