Midcontinent pure-play Chaparral Energy Inc. said this week an 11-well spacing test in Oklahoma’s Sooner Trend of the Anadarko Basin mostly in Canadian and Kingfisher counties (STACK) has far exceeded its type curves and further validates the potential of the company’s cube-style development approach.
The 11-well Foraker test, drilled from three pads into the Upper and Lower Meramec formations, along with the Woodford Shale, had an average 30-day initial production (IP) rate of 1,357 boe/d, with a 48% oil cut. The average IP for the nine Meramec wells was 1,491 boe/d, while the average IP for the two Woodford wells was 754 boe/d, far exceeding the company’s expectations.
“The Foraker 11-well cube-style, co-development spacing test has clearly demonstrated enhanced productivity, which we believe helps to validate the upside potential of our cube-style, co-development approach moving forward,” CEO Earl Reynolds said.
All the wells, Reynolds added, continue to flow naturally with no artificial lift. The average lateral lengths of the Meramec and Woodford wells were 4,934 and 4,949 feet, respectively. The company finished drilling the Foraker test in Canadian County during the first quarter and started completion of the wells before the period ended.
“These outstanding production results, coupled with costs at or below our type curve estimates, lead us to believe these wells will be some of the most economic and efficient wells Chaparral has ever drilled,” Reynolds said.
The average cost per well continues to track below management’s estimates of $4.4 million. The trend was driven primarily by drilling and completion efficiency gains, with the cycle time accelerating to 133 days from spud to first sales. The entire project was brought online two weeks ahead of schedule, the company noted.
Such gains currently have the company producing 28,000 boe/d, compared to 20,800 boe/d in the first quarter. Chaparral forecasts that 2Q2019 production will come in above the high end of its guidance range of 26,000-27,500 boe/d.
When it finished drilling the Foraker test, the company moved from a four- to three-rig program. Capital spending is also expected to decline in the second half of the year compared to the first.
The company also reported more strong results from its Denali partial spacing test in Canadian County. The wells came online last September and helped to inform the Foraker test. The three-well test has so far averaged IP rates of 1,290 boe/d over a 30-day period, 1,149 boe/d over a 60-day period and 1,032 boe/d over a 90-day period.