Devon is accelerating activity in the STACK play by adding as many as 4 rigs in Q4 2016
OKLAHOMA CITY – Devon Energy Corp. announced it has successfully tested its third Meramec spacing pilot and commenced production on two high-rate, extended-reach lateral oil wells in the core of the over-pressured oil window of the STACK formation in Oklahoma.
The Pump House spacing pilot tested a seven-well pattern across a single-section interval in the upper Meramec. Initial 15-day production rates averaged 2,200 boe per day per well (55 per cent oil) and cost $6 million per well.
The Pump House wells were drilled with 4,700-foot laterals and utilized a completion design that deployed 2,200 pounds of prop pant per lateral foot across 35 frac stages with perf clusters spaced 25 feet apart.
To manage pressure and maximize value, these wells were brought online using an engineered choke management approach starting at a 14/64-inch choke and gradually increasing to a 26/64-inch choke over the initial 15-day period.
“Results from our initial three Meramec spacing tests are outstanding, with flow rates exceeding type-curve expectations and minimal interference between wells,” said Tony Vaughn, chief operating officer.
The Pump House wells are located in Kingfisher County adjacent to the Born Free pilot and three miles north of the Alma pilot. Production from the two-well Born Free pilot continues to perform exceptionally well, averaging a 120-day rate of 1,400 Boe per day per well.
“These positive results indicate the potential for tighter spacing and increased inventory in the core of the over-pressured oil window. We continue to advance several additional Meramec spacing tests that will help us accelerate learnings and further prepare for full-field development in 2017 across our industry-leading position in the STACK,” said Vaughn.
The five-well Alma pilot has achieved a 60-day average rate of 1,300 Boe per day on a per well basis.
To determine the optimal spacing approach for the stacked-pay intervals in the Meramec, the Company is participating in more than 10 additional spacing pilots during the remainder of 2016.
The spacing pilots are focused in the over-pressured oil window and are testing up to eight wells in a single Meramec interval and evaluating the joint development of multiple stacked-pay intervals through staggered well pilots.
Initial production rates from several of these spacing pilots will occur during the second half of 2016.
Extended-Reach STACK Wells Deliver High Production Rates
The company also recently brought online two extended-reach Meramec wells in eastern Blaine County, within the core of the over-pressured oil window. The Marmot 19-1HX and Blue Ox 3130-4AH were drilled with 10,000-foot laterals and achieved average peak 24-hour rates of 3,700 Boe per day per well (70 percent oil).
The Marmot and Blue Ox wells utilized a larger completion design that deployed 2,600 pounds of proppant per lateral foot across 50 frac stages with perf clusters spaced 30 feet apart. The peak 24-hour rates for these wells were attained with a 28/64 choke.
Accelerating Investment in the STACK
As previously announced, Devon is accelerating activity in the STACK play by adding as many as four operated rigs in the second half of 2016.
This plan could bring the Company’s operated rig count to as many as six in the STACK by year-end 2016. Due to the increased activity, Devon expects to invest approximately $450 million in the STACK during 2016, an increase of 40 percent from previous guidance.