Oklahoma Oilfields Gain Recognition

Oklahoma's growing oil fields gained national recognition this week when the U.S. Energy Information Administration added the Anadarko Basin to its weekly Drilling Productivity Report.

The weekly snapshot of industry activity highlights the country's most active drilling areas. The Anadarko Basin — which includes the STACK and SCOOP fields — is the third most active in the country.

"The Anadarko Basin has a long history of hydrocarbon production and, in recent years, has seen an increase in activity mainly from two areas commonly known as the STACK and SCOOP plays," EIA said in a statement this week.

The productivity report also includes information on the Permian Basin in west Texas and southeast New Mexico, the Eagle Ford in south Texas, the Haynesville in east Texas and northwest Louisiana, the Niobrara in Colorado and Wyoming and the North Dakota Bakken.

Also this week, the EIA combined its reports on the Marcellus in Pennsylvania area and the Ohio-area Utica into one group the agency now lists as Appalachia.

EIA recognizes the Anadarko as 24 counties in western Oklahoma and five counties in the Texas Panhandle. The region accounts for about 450,000 barrels of oil per day, 5.7 billion cubic feet of natural gas per day and 13 percent of the new wells drilled as of July.

Also this week, industry analyst firm IHS Markit said the STACK play continues to draw interest from companies throughout the region.

"Generally, we think the economics are pretty good and are on par with anything in the Permian and the best unconventional plays in the United States," Imre Kugler, associate director of energy research at IHS said in an interview Thursday.

Wells in much of the STACK generate at least a 10 percent return with oil prices in the low $40s, Kugler said, comparable to the average well in the Permian or Eagle Ford fields.

While the best parts of the STACK may be as economical as the Permian, Kugler said there is one very significant difference.

"The main difference is the size," he said. "As far as what we've identified, it's mostly Kingfisher County and a few other areas. It's not a lot of acreage compared to the Permian. It probably won't be another 1 million barrel-per-day field, but it could be several hundred thousand."

The Anadarko Basin also could get a boost next week when companies are allowed to drill horizontal wells up to two miles long in all producing rock layers, the analyst said.

"Certainly longer laterals has been the trend throughout the industry," Kugler said.

Longer laterals and more drilling in general could help unlock some of the Anadarko Basin rock layers that have not yet been fully tested, but it still is unclear how much potential the basin holds, he said.

"The Anadarko has so many formations and opportunities that it will continue to evolve," Kugler said.

Source: NewsOK