OKLAHOMA CITY--(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.
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Source: Devon Energy Corporation