Devon Energy Announces Third Successful STACK Spacing Test and High-Rate Extended-Reach Oil Wells
September 06 2016 - 4:15PM
Business Wire
Devon Energy Corp. (NYSE: DVN) announced today 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.
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 oil-equivalent barrels (Boe) per
day per well (55 percent 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 proppant 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.
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 (announced
first-quarter 2016) continues to perform exceptionally well,
averaging a 120-day rate of 1,400 Boe per day per well. The
five-well Alma pilot has achieved a 60-day average rate of 1,300
Boe per day on a per well basis.
“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. “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.”
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.
“These successful extended-reach oil wells help us further
understand the optimal development scheme for Devon’s
industry-leading STACK position,” said Vaughn. “As we progress to
full-field development in 2017, it is our expectation that we will
develop the majority of our stacked-pay Meramec position with
extended-reach laterals, which will significantly increase rates of
return from this world-class reservoir.”
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. This additional capital investment positions the
STACK asset to deliver strong growth in 2017.
About Devon Energy
Devon Energy is a leading independent energy company engaged in
finding and producing oil and natural gas. Based in Oklahoma City
and included in the S&P 500, Devon operates in several of the
most prolific oil and natural gas plays in the U.S. and Canada with
an emphasis on a balanced portfolio. The Company is the
second-largest oil producer among North American onshore
independents. For more information, please visit
www.devonenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company. These risks
include, but are not limited to our ability to replicate the
results described in this release for future wells; all the other
uncertainties, costs and risks involved in exploration and
development activities; and the other risks identified in the
Company’s Annual Report on Form 10-K and its other filings with the
Securities and Exchange Commission. Investors are cautioned that
any such statements are not guarantees of future performance and
that actual results or developments may differ materially from
those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the
date hereof, and the Company does not undertake any obligation to
update the forward-looking statements as a result of new
information, future events or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160906006455/en/
Devon Energy Corp.Investor ContactsHoward Thill,
405-552-3693Scott Coody, 405-552-4735Chris Carr,
405-228-2496Media ContactJohn Porretto, 405-228-7506
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Devon Energy (NYSE:DVN)
Historical Stock Chart
From Apr 2023 to Apr 2024