Month: May 2017

Today kicked off Blanchard’s May Daze Festival, an annual weekend event that brings vendors, carnival games, food trucks, and theme park rides to main street in Blanchard, OK.

 

Keeping with the festive, fun spirit, we put together a quick overview of “Oklahoma Active Well Fun Facts.”

According to production data obtained online, Chesapeake Operating, LLC currently operates the most wells.

 

Stephens County has the most reported active wells, with 4,337. Six counties in the state of Oklahoma appear to not have any “active” wells . Side Note: McCurtain County, in the SE corner of Oklahoma, is known for its tree logging industry. When you go to the county clerk’s office, you will notice legal instruments related to tree farms rather than oil and gas activity.

 

 

The below map illustrates the number of active wells based on their main production type.

Notice how the above map is very similar to the Oil & Gas Fields Map produced by the Oklahoma Geological Survey.

 

Enjoy your weekend and be sure to check out next weeks, “Weekly Permit Update.”

Devon Energy is the focus of this weeks Oklahoma Operator Overview, following their Q1 2017 Financial and Operationlal Results. The full report can be downloaded here.

 

According to their report, Devon averaged 95,000 BOE/day during the first quarter of 2017; an 8% increase over Q4 2016. The increase was due to Devon bringing online >25 operated wells; with initial 30-day rate averaging 1,600 BOE/day. Devon’s Lease Operating Expense averaged $4.79 per BOE.

In the STACK Devon claims to have the largest leasehold position of any operator, with 430,000 Net Surface Acres. 80,000 acres was acquired from Felix Energy at the end of 2016. As you can see by the below map, Felix’s acreage was located in the core STACK, particularly the “over-pressured region.” Additionally, Felix transferred 119 wells to Devon, as reflected in the attached 1073 Form (Well Transfer Form).

Like most operators, Devon is targeting the Meramec and Woodford Formations. Devon is testing up to 8 wells per section. Due to the number of wells being proposed, mineral and leasehold prices have skyrocketed in the STACK.

We examined wells operated by Devon Energy that were completed after 01/01/2012. The analysis can be examined in the charts that follow. Please be advised that the data is based on production numbers reported by DrillingInfo. Additionally, some anomalies may exist in the reported averages since production data from recent wells may be limited and/or reflected as zero.

 

 

 

 

Devon’s president and CEO, Dave Hager stated, “Looking ahead, we expect our operational momentum to build as we continue to accelerate investment across our world-class U.S. drilling programs and shift to full-field development. With excellent first-quarter results in hand, we are firmly on track to achieve our multi-year growth targets and deliver peer-leading cash flow expansion.”