sorry if this has been posted, I did not remember seeing it.
Prolific well opens new gas play
By John Paul Pitts
Oil Editor
Chesapeake Energy Corp. has reported a natural gas discovery in the Georgetown formation of 40 million cubic feet daily.
Chesapeake officials say the well, which paid out its $2.8 million drilling and completion cost in 13 days, is expected to generate more than $8 million in the first 30 days of production.
Marc Rowland, Chesapeake's chief financial officer, says this one well (Ricks 1-H), which generates $300,000 daily in revenue to the company, will pay the entire monthly interest on the company debt.
"Our company is very excited, because it opens a brand new play for the compay. If the next 100 wells generate $300,000 a day in revenues, think what that can do for Chesapeake," he said.
The well, located in the Independence portion of the Deep Giddings Field in Washington County, is a single lateral horizontal well which commenced production on December 7th and is currently producing at a daily rate of 40 million cubic feet of natural gas on a 26/64" choke with flowing tubing pressure of 5,000 psi.
Rowland said the Georgetown formation is expected to have a high deliverability production profile similar to the slightly shallower Austin Chalk formation in the Deep Giddings area in Grimes and Washington Counties.
"If it has a deliverability profile similar to the Chalk, we can expect to produce about half the reserves in the first 10 months then taper off eventually to about 1 million cubic feet daily," he said.
Based on current daily production rates of 40,000 mcf from the Ricks well and similar performance from a nearby well operated by Anadarko, Chesapeake anticipates accelerating to a three rig Georgetown drilling program within the next 30 days.
The company believes the Georgetown prospect may cover a significant portion of Chesapeake's approximate 75,000 acre operated leasehold position in the Navasota River and Independence areas. The combination of Chesapeake's substantial existing acreage base and proven geological and engineering expertise in developing deep fractured carbonates has Chesapeake well-positioned to generate significant value from this high potential area. The company estimates up to 100 additional Georgetown locations within the prospect area. Rowland said it was possible that the horizontal play could eventually turn into a multi-lateral drilling opportunity.
"Right now the key is to make make drilling and completions as seamless as possible to capitalize upon current high natural gas prices," he said.
While Chesapeake expects the Georgetown to become a prolific natural gas play in South Texas, it is a play that will be enjoyed by only a few. Most of the acreage in the play area was tied up by Chesapeake and UPR during the Austin Chalk boom.
12/24/2000 |
