Devon energy picked up our minerals and have begun drilling. They filed permits for 5 source rocks. (Mississippi lime, woodford, misner-hunton, sylvan, and Simpson). They are actively drilling the sylvan formation on different sections we have minerals on. I was wondering if anyone knew of any production in the formations other than the Mississippian and woodford. I have also heard rumors of one well bore producing from multiple formations. Any info would be great. Thanks!
That is interesting because we got spacing changes from the OCC which showed Devon the applicant with permits for Mississippi,Woodford,Misener,Viola,Simpson and Wilcox but not being a geologist I don't know if there are all source rocks or not.
Ive heard they produce from all of those formations through one well bore and I have also heard they’ll drill each formation with a different well bore at a later date. All of the formations you listed are seperate source rocks.
Good deal,more wells mean more royalty checks.Have been told they can drill up to 10 wells per section,hope they do it on one of ours..lol
I hear yuh! It’ll be interesting to see what happens.
Question - is this list of prodcing formations all on the same permit? If so, this may similar to sitations that commonly occur in Texas where a permit for a new well lists all the historically producing horzions / fields in that immediate area. Although all the historical producing zones are listed, the operator is only targeting a single horizon for testing.
The historically drilled formations are listed in the permi. The permit states a 640 acre horizontal unit be established for the mississippian woodford misner hunton simpson and sylvan sources of supply. The other historical producers are much shallower and are not mentioned in the actual permitting. Devon is very quiet about what’s really going on it seems. Competitive reasons I assume. There are restrictions like the well bore must be at least 330 feet from the next spacing for the Mississippian and 660 feet for the other 4 formations. The formations permitted are all stacked. Devon’s website they state they are in a joint venture with sinopec on a 5 pay zone play where we are. I’ve heard of devon producing multiple formations from one well bore in the Permian basin. Maybe the OCC could answer these questions
I can see producing muliple zones in a vertical wellbore but a horizontal is going to be limited to a single zone. Can someone attached the permit PDF to a posting for all to view?
Yes, I will post the entire permit tomorrow. Thanks!
From Devon's website:
Devon’s Mississippian acreage position represents roughly 600,000 net acres and is located in north central Oklahoma. Devon is in the early stages of derisking its acreage, which is prospective for both the Mississippi Lime and Woodford Shale targets. Overall, Devon’s large position represents over 5,000 risked locations and more than 800 million equivalent barrels of net risked resource potential.
Devon’s acreage in the Mississippian is divided into southern and northern leaseholds. The southern acreage is part of a five-play, joint-venture agreement which calls in part for Sinopec to pay 80 percent of Devon’s share of drilling costs, up to $1.6 billion, in return for a one-third interest in the acreage. The remaining Mississippian leasehold, which stretches into Kansas, is outside of that agreement. (Five play) http://www.devonenergy.com/Operations/FeatureStories/Pages/encouraged_mississippian.aspx It was a Mississippian feature story they posted awhile back
Sinopec AKA China petroleum and chemical corporation based in Beijing, China. Nothin like a Chinese joint venture to de-risk some assets!
So I would interpret this to mean Garfield and Grant counties would be in the northern zone with the incentive to drill multiple wells per section small because the drilling expenses wouldn't be shared?
Correct. There are multiple producing formations or pay zones in the southern counties that sinopec is de-risking by paying the majority of drilling costs