| The Barnett Shale Activity
Report |
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06/08/2002
The Barnett Shale play of North Texas is one of
the most active areas in the United States for oil and natural gas development
drilling. There are nearly 40 rigs working mostly in Wise, Denton and Tarrant
counties. The play is moving into Montague, S.W. Cooke and Johnson counties.
Mitchell Energy Corporation has been acquired by Devon Energy Operating
of Oklahoma City, Oklahoma. Devon is constantly refracing old Mitchell wells
with in many occasions with unparalleled results. They have opened the Upper
Barnett and reperforated the Lower Barnett and frac'd both. Many of the refracs
create stronger wells than the initial frac that may have produced as many as
18 years ago. Thus it can be stated that in the better fractured areas Barnett
wells will produce well over 20 years and perhaps considerably longer.
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In the early 1980's this
play initiated primarily because of government tax benefits. Since then each
year new techniques in stimulation has increased production. The early fracs
used masses of sand and cost considerably more than today's stimulations. Water
fracs began in the mid 1990's using only about a 100,000# of sand at the tail
end of the frac. The cost of fracing has decreased considerably. Some are now
experimenting with no sand fracs.
Mitchell Energy began refracing their
old sand frac wells with the new water fracs and the wells became even stronger
and will produce for another period of time with considerably more reserves. In
thicker shale areas three, four or perhaps five future stimulations can be
expected pushing reserve figures to over 2 BCF- 3BCF per well in the core area
of the field.
Several months ago a pipe tally was made in error and a
Mitchell well was left with no pipe over the Barnett. The only way to complete
it was by open hole. The well was frac'd in the open hole and tested initially
5 times stronger than the wells around it. It can be then assumed that cement
damaged or perhaps squeezed the large fractures in the Barnett.
Cement
damage to the reservoir would be particularly deleterious to the larger
fractures that occur on structures in Montague and Wise Counties. Near Slidell
in Wise County, U.S. Operating Company of Dallas, Texas completed the
Fortenberry #1 without sand and immediately put the well into a 500# line. The
well has produced initially above 1 MMCFGPD and 200 BOPD to about 500 MCFGPD
and oil recently. The well will be flowing into low pressure in the next
several weeks and the flow rates will be carefully observed.
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| Significant new wells in norther
Wise, Southern Montage & Southeastern Cooke Counties. |
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Tejas
Western Oil and Gas has drilled three wells in extreme northern Wise
County and southeastern Montague County. These wells are not in close proximity
to any pipeline. Tejas Western has drilled and completed the Collins well that
is pumping into a pipeline. This well is cleaning up and useful gages should
occur in the next 30 days. This well is near Greenwood.
U.S. Operating has drilled and will complete their Shirley
well just northwest of Slidell in Wise County in several weeks. They plan 10
additional wells.
Rife Oil Properties Nobles is
waiting on a pipeline. Following the best techniques known at present the well
will be fracted into perforations into casing with no cement across from the
most fractured Barnett Shale. This treatment should open up the best of the pay
instead of wasting a great deal of the frac on less fractured Barnett. Ideally
the well will flow back into the pipeline so the treatment is left on the
formation a minimal amount of time.
Merritt Operating
has just set pipe on the Jan Lee #1 well in extreme southern Montague
County. The well apparently has an excellent Barnett section and other
potential pays. They currently are drilling the Baydie in extreme S.W. Cooke
County.
Arkoma Oil and Gas has immediate plans
to drill two wells northwest of the Merritt Jan Lee and northeast of the three
Tejas Western wells. This drilling will be in southeast Montague County.
Pipeline Report Encana Oil and Gas Company is in the process of finishing
compression to about 20 wells in the Slidell area of extreme northeastern Wise
County. Pipeline construction adding several new wells including the Rife Oil
Properties Fletcher and Rife Oil Properties Nobles to the west and northwest is
slowly being constructed.
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Encana
Oil and Gas Company is in the process of finishing compression to about
20 wells in the Slidell area of extreme northeastern Wise County.
Pipeline construction adding several new wells including the Rife Oil
Properties Fletcher and Rife Oil Properties Nobles to the west and northwest is
slowly being constructed. |
