Copyright of the Daily Oil Bulletin 2017
Devon Brings On High Rate Lower Meramec Oil Well
Devon Energy Corporation brought online a high-rate Lower Meramec oil well offsetting its Coyote development in the over-pressured oil window of the STACK play.
The Faith Marie 1-H resides directly adjacent to the company’s Coyote development project in Blaine County and achieved a peak 24-hour rate of 5,100 boe/d. The projected 30-day rate for this 9,000-foot lateral well is 4,600 boe/d (65 per cent oil). Oil productivity from the Faith Marie is the highest of any STACK well to date targeting the Lower Meramec interval.
Well productivity at Faith Marie was enhanced by a new completion design that improved stimulated rock volume through the systematic cycling of pressure and fluid rates. The new completion design also lowered well costs at Faith Marie to $9 million. This improvement compared to legacy wells in the area was driven by the use of a higher viscosity slickwater fluid system, increases in frac stage length and other proprietary modifications. The learnings from this enhanced completion design will be deployed to future full-field development activity.
“As we shift to full-field development in the STACK, we expect to achieve a step-change improvement in capital efficiency and returns,” said Tony Vaughn, chief operating officer. “The advancement of Devon’s multi-zone development activity in the STACK coupled with the deployment of our cutting-edge completion design is expected to improve capital efficiencies by up to 20 per cent while continuing to deliver best-in-class well productivity in the play.”
In the fourth quarter, the company expects to bring online approximately 25 wells in the STACK play that will benefit from the improved completion design. This new well activity will primarily reside in the over-pressured oil window of the play and is expected to increase net production in the STACK to more than 120,000 boe/d by year end.
Coyote and Showboat development projects progressing
Devon began drilling at its seven-well Coyote development project in September. The Coyote project is immediately adjacent to the Faith Marie well and is targeting the same landing zone in the Lower Meramec interval. The drilling program at Coyote has reached target depth on three wells, with drilling times improving by approximately 15 per cent compared to the results of the offsetting Faith Marie well. Devon has three rigs dedicated to the Coyote project with initial production rates expected in the first quarter of 2018.
Drilling also is underway at Devon’s Showboat project in Kingfisher County, which is the company’s first multi-zone development in the STACK play. The Showboat project consists of 24 wells across two drilling units, co-developing four intervals. Devon is currently running five rigs at Showboat and is on track to complete the drilling phase of the project by year end. The Showboat development is offset by the Privott well, which was landed in the Upper Meramec that recently achieved a peak rate of 6,000 boe/d. Initial production rates at Showboat are expected in the second quarter of 2018.