Producers in Oklahoma’s newly opened Merge play are sitting atop a resource that rivals some major world gas fields and discoveries, Citizen Energy’s Geology CEO Greg Augsburger told the SPE Gulf Coast Section Business Development Group recently. Linn Energy recently sold its Williston Basin properties for $285 million. This deal brings Linn’s year-to-date total sales agreements to more than $1.5 billion as it financially restructures after bankruptcy. At the recent Leaders in Industry luncheon in Houston, Jonny Jones told the interesting story of how Jones Energy grew from a small private entity to a company whose shares trade on the New York Stock Exchange.
The chief upstream strategist of IHS Markit said in a recent presentation that oil exploration must improve its ability to deliver value and better communicate that value to the financial community. New ways of thinking about exploration opportunities are needed. Producers in Oklahoma’s newly opened Merge play are sitting atop a resource that rivals some major world gas fields and discoveries, Citizen Energy’s Geology CEO Greg Augsburger told the SPE Gulf Coast Section Business Development Group recently. The Austin Chalk play could go through a revival if the industry can view the formation through “a fresh set of eyes,” says EnerVest’s Tony Maranto. Dimethyl-ether (DME) -enhanced waterflood (DEW) is a process in which DME is added to injection water and, upon injection, preferentially partitions into the remaining oil.
Marathon Oil says its shale fields are producing more oil and gas with less hands-on work from company personnel thanks to a growing arsenal of digital technologies and workflows. Producers in Oklahoma’s newly opened Merge play are sitting atop a resource that rivals some major world gas fields and discoveries, Citizen Energy’s Geology CEO Greg Augsburger told the SPE Gulf Coast Section Business Development Group recently. Linn Energy recently sold its Williston Basin properties for $285 million. This deal brings Linn’s year-to-date total sales agreements to more than $1.5 billion as it financially restructures after bankruptcy. The United States’ liquids-rich shale experience has been dominated by three major plays: the Eagle Ford Shale in south Texas, the Permian Basin in west Texas, and the Bakken Shale that straddles North Dakota and Montana.
The strategy supports the Maximise Economic Recovery from UK Oil & Gas Strategy and Vision 2035, whose goal is to achieve £140 billion additional gross revenue from UKCS production by that time. The Caribbean nation hopes the auction will lead to at least two exploration projects in a region that has become increasingly attractive thanks to new discoveries and investments made in neighboring countries. Operator Talos Energy now believes Zama’s gross recoverable resource lies in the upper half of its pre-appraisal estimate of 400–800 million BOE. The consortium is working toward a 2020 final investment decision on the project. The explorer has so far encountered 400 ft of reservoir pay zone in an area where it has three other producing fields.
Will Blockchain Become the New Operational Backbone in Energy? Energy companies are looking to distributed ledger technology—otherwise known as blockchain—to help navigate the complex transactional systems that make up their operations. What is blockchain, and what makes it valuable to our industry? Stories from the IADC/SPE Drilling Conference look at how the next generation of engineers is performing, the hottest well ever drilled, and the art of translating drilling numbers into executive reports. Higher oil prices and higher-intensity completions are increasing the need for US onshore pressure pumping horsepower.
Producers in the recently opened Merge play of Oklahoma’s Anadarko Basin are sitting atop a resource that rivals some of the world’s major gas fields and largest new discoveries, Geology CEO Greg Augsburger of Citizen Energy told the SPE Gulf Coast Section Business Development Group recently. Merge lies between the prolific STACK (Sooner Trend, Anadarko, and Canadian and Kingfisher [counties]) and SCOOP (South Central Oklahoma Oil Province) plays, effectively tying them together. Privately funded Citizen Energy, formed in 2012, drilled the Merge discovery well in September 2015 and 18 delineation wells before significant competitor interest emerged. The discovery, made by the Governor James B. Edwards well in the Sycamore formation, was Citizen’s first company well. Augsburger stressed the important role that Anadarko Basin geology has played in Oklahoma oil and gas development from the earliest activity in the Cherokee Platform of eastern Oklahoma during the 1890s.
Hot shale plays tend to fall short of expectations after a few years, and the Permian Basin will be the next big test of the pattern. A recent technical paper by Robert Clarke, research director for Lower 48 Upstream for Wood Mackenzie, questions whether future drilling in the Permian will hit 5 million b/d in 2025 as the consultancy has predicted. Based on what he has been learning recently, some of it reported in SPE technical papers, the actual results could be worse or better, depending on how well the industry solves the problems that will come with intensive development in the Permian.
Compared to oil in the ground, the sun looks like a limitless energy source. Making comparisons of the two by calculating the equivalent of barrels of reserves for a solar project seems like an odd notion. But experts in reserves accounting say that it can and should be done, and are working on a way to do so. An arm of the United Nations (UN), with support from SPE, is working to adapt the system now used to track reserves of oil and minerals in the ground to apply to renewable power sources such as the wind and the sun as part of a long-term effort to cover other sources of energy. He said they are “working on ways to compare renewables and nonrenewables.”
The PRMS encourages the use of subclasses that provide some qualitative assessment of CoD. These subclasses include #7;Development Pending, where project activities are ongoing to justify commercial development in the foreseeable future. Development Unclarified or On Hold, where project activities are on hold or where justification as a commercial development may be subject to a significant delay. This subclass refers to quite different situations; Unclarified typically refers to internal decisions, whereas On Hold is more related to external factors. Development Not Viable, where there are no current plans to acquire additional data because of limited production potential. This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 170747, “Chance of Development: What Is It? Can We Estimate It? How Should We Use It?,” by Doug Peacock, SPE, and Tracey Jennings, SPE, Gaffney, Cline & Associates, prepared for the 2014 SPE Annual Technical Conference and Exhibition, Amsterdam, 27–29 October. The paper has not been peer reviewed.