Devon Energy (NYSE: DVN) gave a preview ahead of its Aug. 2 earnings release of what it has gained in the Stack, announcing a record-setting well for the play.
Devon said July 18 that it brought online another successful spacing pilot and a highly productive oil well in the overpressured oil window of the Stack.
Devon said the Pony Express 27-1H, its record-buster oil well in southwest Kingfisher County, Okla., was drilled with a 5,000-ft lateral and achieved a 30-day average rate of 2,100 barrels of oil equivalent per day (boe/d).
Production consisted of 1,500 barrels of oil per day, or 70% of production. Oil productivity from the Pony Express is the highest of any Meramec well drilled to date in the play on a per lateral foot basis.
Mike Kelly, analyst at Seaport Global Securities, said Devon’s impressive Pony Express completion produced 300 barrels per day of oil for each lateral foot.
“The operations release also provided a positive overall read for the play, given that production rates per lateral foot continue to trend higher,” Kelly said.
Devon also conducted its Alma spacing pilot test of five wells per section across a single interval in the upper Meramec. The pilot delivered 30-day production rates averaging 1,400 boe/d per well, of which 60% was light oil.
With early flowback results indicating minimal interference between wells, Devon sees the potential for tighter spacing.
The Alma wells were drilled with 5,000-ft laterals and were conservatively brought online with a 12/64-inch choke and gradually increased to a 20/64-inch choke.
“The Alma spacing pilot and record-setting Pony Express oil well are examples of the excellent results we are achieving in the Meramec formation, which has quickly evolved into the best emerging development play in North America,” said Tony Vaughn, COO. “These successful well results help us further understand the optimal development scheme for Devon’s industry leading Stack position as we prepare for full-field development in 2017.”
Devon said it now has two successful spacing pilots in the core of the Meramec oil window.
The company’s next pilot is the Pump House test in southwest Kingfisher. The Pump House is testing seven wells per section in a single interval in the Upper Meramec and initial flow rates are expected in the third quarter of 2016.
Results from the spacing pilots will help Devon optimize a master development plan that could ultimately move to full-field development in 2017.
Kelly said that the Alma spacing test wasn’t necessarily a “game changer in light of upcoming completions, which will test up to eight wells per section.”
“We also found interesting that all wells mentioned in the ops release were 5,000-ft laterals located in the Stack’s overpressured oil window,” Kelly said. “Optimal lateral lengths have been a hot topic in the Stack to date, with operators in the overpressured window preferring longer laterals of about 10,000 ft.”
However, E&Ps in the normally pressured window to the east have recently migrated toward 5,000-ft lateral development, he said.
Kelly noted that with Devon’s significantly greater productivity on a lateral foot adjusted basis, he’ll be listening for Devon’s latest take on optimal lateral length in conjunction with second-quarter earnings.
Darren Barbee can be reached at dbarbee@hartenergy.com.
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