Cana-Woodford Shale - Devon Energy (DVN)

By Tim - http://oilshalegas.com

Devon Energy (DVN) provides a drilling update for the Cana-Woodford Shale located on Oklahoma.

Moving now to the Cana-Woodford Shale in Western Oklahoma. Our Cana gas plant was back fully operational in December, following repairs of the damage incurred last May from a tornado. This helped us achieve our target exit rate for the Cana of 275 million cubic feet equivalent per day. Fourth quarter net production increased 83% over the year-ago quarter to a record 250 million cubic feet of gas equivalent per day, including 3,100 barrels of oil and 7,400 barrels of natural gas liquids per day. This significant liquids contribution, combined with our low acreage and royalty costs, enable us to generate strong full-cycle returns in the current commodity price environment.

In 2012, we plan to invest some $870 million of capital and drill nearly 200 wells in Cana. Our Cana activity will be focused in the oil and natural gas liquids-rich portion of the core area. Liquids should represent almost 40% of the production stream generated by the 2012 capital program. Cana oil and liquids production is expected to grow over 85% to an average of 16,000 barrels per day in 2012.

From a reserves performance perspective, Cana was a leading growth area for the company in 2011. Extensions, discoveries and performance revisions at Cana accounted for 160 million barrels of oil equivalent of additions. At year end, we had 328 million equivalent barrels booked in the Cana-Woodford. With almost 2 billion barrels equivalent of risked resource potential and more than 5,000 risked locations remaining, we expect Cana to deliver many more years of highly economic production and reserves growth.

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Range Resources Corp. (RRC) : Cana/Woodford Shale Update

By Andrea: http://oilshalegas.com

The first two completions of the 2010 drilling program in the Ardmore Basin horizontal Woodford play at depths of 7,000 feet have yielded outstanding results. One well completed for an average production rate of 801 barrels of oil and NGLs per day and 2.3 Mmcf per day or 1,176 (362 net) Boe per day. The average rate for the second completion was 1,064 barrels of oil and NGLs per day and 2.7 Mmcf per day or 1,514 (702 net) Boe per day. One operated rig is currently active in the play, along with one non-operated rig. During the quarter, the 5,000-foot deep horizontal Mississippian Lime play in northern Oklahoma recorded another strong completion with average daily production rates of 260 barrels of oil and NGLs and 900 mcf or 410 (318 net) Boe per day. Two additional wells in the play are currently drilling. In addition, Range controls approximately 80,000 (42,000 net) legacy acres that are all held by production in the emerging Cana Shale play in the Anadarko Basin. While still early, it appears that a material portion of our acreage is in the core of the play. Given that all of Range's acreage is held by production, our strategy is to take a "wait and see approach," before determining how to best exploit our acreage position.

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Devon Energy Corp. (DVN): Woodford Shale Update

By Andrea: http://oilshalegas.com

Devon Energy Corp. (DVN) released a positive update on the Woodford shale located in western Oklahoma. They are currently in the process of acquiring a significant amount of additional acreage in this play. Most of this new acreage is primarily term and located in the liquids-rich portion of the play. They are currently running nine operated rigs and will bring additional rigs into the play over the next few months to secure the term acreage.

Devon Energy continues to relay excellent results from Cana-Woodford and believes that the field offers some of the best economics among gas plays in North American shale. In the second quarter, they brought 10 operated wells online with average 24-hour IP rates of 6.8 million cubic feet equivalent per day, including 86 barrels of condensate and 350 barrels per day of NGLs.

Second quarter net production from Cana-Woodford averaged a record 105 million cubic feet of equivalent per day, included in 1,000 barrels per day of condensate and 3,000 barrels of NGLs. This was up 43% on a sequential-quarter basis.

They initiated an in-field [ph] pilot program at Cana-Woodford to help them better understand optimal well spacing. This was a joint project with another operator that consisted of nine total horizontal wells being drilled and completed within one square mile. Five of these wells were spaced at 500 feet apart and the other four wells at 660 feet apart. Excluding the first well in the section that had been producing for some time, the average 30-day IP from the eight new wells was 5.4 million cubic feet equivalent per day, including 46 barrels of condensate per day and 245 barrels of NGLs per day.

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