Paul Wiseman writes a very detailed breakdown regarding the completion of Big Tex #2, a well that has recently been drilled by Breitling Oil and Gas. Wiseman explains the use of the latest innovative technology and provides an accurate breakdown of not only the process but where he sees the future heading.
Posted: Wednesday, October 19, 2011 1:11 pm
Last month Breitling Oil and Gas completed Big Tex #2 in Gaines County’s Texpack field. The well is the second of a three-well startup program operated for Breitling by SandRidge Energy’s Odessa office. The well was drilled to 9,000 feet, into the lower Clear Fork dolomite, according to Breitling CEO Chris Faulkner. Breitling is headquartered in Dallas.
The Texpac field was most active in the 1960s and 70s and had been dormant for about 10 years before Breitling’s acquisition of the Texas-New Mexico-border field about six months ago. Texpac and the nearby Russell field have produced more than 130 million barrels of oil already, Faulkner reported, so they were certain there was more oil to be had, especially after poring over new seismic data.
“The wells came in better than expected,” said Faulkner of the play that is mostly oil. They currently estimate reserves at 500,000 barrels in the field.
Previous producers did little more than apply acid to completed wells, reaping huge benefits and yet leaving much oil in the ground. “What we’re doing now, applying technology to mature fields with a lot of oil in place, that’s our primary business model,” said Faulkner. Noting Gaines County is one of the state’s top oil producers, he added, “It produces a boatload of oil there.”
Breitling’s next move likely will be to expand the trend west across the New Mexico state line into sections 29 and 32 near Hobbs. That area also should furnish production at between 9,000 and 9,500 feet. Those wells and any Texas wells after Big Tex #3 will be operated by Breitling itself.
The aforementioned application of technology starts with a patent-pending seismic reinterpretation filter. The software reprocesses existing seismic data at a very high resolution, seeking additional zones of possible production, zones that could not have been seen at lower resolution. Indeed, Breitling personnel saw clinoforms around the lower Clear Fork, a trapping mechanism for oil and gas, which had been invisible with lower resolution seismic data.
Breitling drilled and indeed found the clinoforms — and oil — and are in the process of starting production from those wells. Faulkner said it is too early to tell what production to expect from them.
In spite of interest in unconventional plays around the Eagle Ford Shale in south Texas, Faulkner said, “What you’re seeing is a reconvergence around conventional reservoirs and conventional prospects. What I mean by that is, going into areas where the oil in place is still substantially there.” Conventional wells first produced as far back as the 1950s used few fracturing or EOR techniques and therefore harvested only what Faulkner called “low-hanging fruit. They were leaving back the lion’s share of the oil in place.”
In those days producers had so many prospects they simply abandoned these wells when the production slowed, and went on to other easy plays, often leaving 80 percent or more of the oil in the ground.
“Now, the era of easy oil is over,” Faulkner noted, adding, “We’re having to go further and deeper to get what’s harder to reach.” Breitling is taking unconventional procedures — horizontal drilling, mulit-stage fracturing and others — and applying them to conventional reservoirs, with great success.
After drilling a well for $2-2.8 million AFE, with resulting production of 450-500 BOPD with a slower decline than in unconventional wells, profits are strong enough to attract oil companies like Breitling back to the conventional plays.
“When I was talking about conventional wells three to four years ago, people thought I was crazy — ‘You’re stuck in the stone age’ — the reality is that it’s not, it’s just reinterpreting things in a different manner,” said Faulkner.
Re-entering old fields involves less risk because oil’s presence there has been proven, the seismic data is better, allowing producers to more accurately identify production zones, and drilling and completion techniques are much better than when the fields were discovered and first produced. “We can reinvigorate these fields bigger and better than they were in their primary production stages,” Faulkner stated.
Paul Wiseman can be reached at firstname.lastname@example.org.
Read more: Breitling reopens Gaines County’s Texpac field – Mywesttexas.com: Oil http://www.mywesttexas.com/business/oil/article_eba033dc-2658-5eb0-96cd-1118b0ccdaf0.html#ixzz1bLD7Tu9b
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