Granite Wash Basin

Unconventional Natural Gas Report
Providing the E&P community with the latest information, data and resources for the unconventional natural gas industry.
No. 37, January 2010
TABLE OF CONTENTS
Recent Publications Calendar 01-02 02-02
January Feature
Texas, Oklahoma
Granite Wash
E-mail: apriestman@hartenergy.com
Ann P riestm an Hart Energy P ublishing
Compiled by:
FEATURE Overview 03-05 Websites 05-06 Active Companies 06-12 Online Resources 13-13 News 14-15 IHS Statistics 16-17 Oil and Gas Investor Articles 18-23 Harts A&D 23-23 Oil and Gas Investor Exploration Highlights 24-27 Selected References 26-31 Past Reports 32-32
Editors Note: This edition is updated from the report that was published Jan. 31, 2010.
R ECENT UNCONVENTI ONAL R ESOUR CE P UBLI CATI ONS

GAS SHALE Boggs, Jeffery; Hinton, Joshua; Boyd, Glenn; Rottler, Peter. Comprehensive Well Planning Pays Off. The American Oil & Gas Reporter, V. 53, N. 1, pp. 51-53, January 2010. Dar, Vinoid D. Emerging Shale Plays Present Opportunities Across North America, Spanning The Globe. The American Oil & Gas Reporter, V. 53, N. 1, pp. 40-49, January 2010. Durham, Louise S. A Different Breed Of Cat: Eagle Ford Joins Shale Elite. AAPG Explorer, V. 31, N. 1, pp. 20, 24, January 2010. Eaton, Susan R. Utica Emerges In Quebec: Shale Play Extends To Canada. AAPG Explorer, V. 31, N. 1, pp. 10-12, January 2010. West Virginias Regulators Act To Help Marcellus Development. The American Oil & Gas Reporter, V. 53, N. 1, pp. 154-157, January 2010. TIGHT GAS Brown, David; Shokair, Khalid M. An Unconventional Unfolding Of Events: Saudi Field Gets Advanced Approach. AAPG Explorer, V. 31, N. 1, pp. 14-18, January 2010. Klann, Susan. Deep Bossier Cools Its Heels. Oil And Gas Investor, V. 30, N. 1, pp. 99-100, January 2010. Pranter, Matthew W.; Cole, Rex D.; Panjaitan, Henrikus; Sommer, Nicholas K. Sandstone-Body Dimensions In A Lower Coastal-Plain Depositional Setting: Lower Williams Fork Formation, Coal Canyon, Piceance Basin, Colorado. AAPG Bulletin, October 2009. Olson, Jon E.; Lauback, Stephen E.; Lander, Robert H. Natural Fracture Characterization In Tight Gas Sandstones: Integrating Mechanics And Diagenesis. AAPG Bulletin, December 2009. COALBED METHANE Bandopadhyay, A.K. Determination Of Quartz Content For Indian Coals Using An FTIR Technique. International Journal Of Coal Geology, V. 81, N. 1, pp. 73-78, January 2010. Chatterjee, R.; Pal, P.K. Estimation Of Stress Magnitude And Physical Properties For Coal Seam Of Rangamati Area, Raniganj Coalfield, India. International Journal Of Coal Geology, V. 81, N. 1, pp. 25-36, January 2010. Dill, H.G.; Bechtel, A.; Kus, J.; Gratzer, R.; Abu Hamad, A.M.G. Deposition And Alteration Of Carbonaceous Series Within A Neotethyan Rift At The Western Boundary Of The Arabian Plate: The Late Permian Um Ima Formation, NW Jordan, A Petroleum System. International Journal Of Coal Geology, V. 81, N. 1, pp. 1-24, January 2010. Garcia, C.P.; Fernandez, M.I.A.; Nicieza, C.G.; Vigil, A.E.A.; Gayarre, F.L. Storage of N2, He And CH4 in Coal: Study And Application In A Practical Case In The Central Asturian Coal Basin (Northern Spain). International Journal Of Coal Geology, V. 81, N. 1, pp. 53-63, January 2010. Jin, H.; Schimmelmann, A.; Mastalerz, M.; Pope, J.; Moore, T.A. Coalbed Gas Desorption In Canisters: Consumption Of Of TrappedAtmospheric Oxygen And implications For Measured Gas Quality. International Journal Of Coal Geology, V. 81, N. 1, pp. 64-72, January 2010.
UNG Report January 2010
Copyright 2010 Hart Energy Publishing
Richards, Wayne. ESPs Excel In Dewatering Mode. Harts E&P, V. 83, N. 1, pp. 49-51, January 2010. Van Niekerk, D.; Mitchell, G.D.; Mathews, J.P. Petrographic And Reflectance Analysis Of Solvent-Swelled And Solvent-Extracted South African Vitrinite-Rich And inertinite-Rich Coals. International Journal Of Coal Geology, V. 81, N. 1, pp. 45-52, January 2010. Wang, S.; Tang, Y.; Schobert, H.H.; Mitchell, G.D.; Liao, F.; Liu, Z. A Thermal Behavior Study Of Chinese Coals With High Hydrogen Content. International Journal Of Coal Geology, V. 81, N. 1, pp. 37-44, January 2010. OIL SHALE Continental Finds Proof Of Bakken Shale Theory. The American Oil & Gas Reporter, V. 53, N. 1, pp. 53, January 2010. Duey, Rhonda. Oil Shale May Put Jordan On The Road To Energy Independence. Harts E&P, V. 83, N. 1, pp. 63, January 2010. Williams, Peggy. Oil-Prone Shale. Oil And Gas Investor, V. 30, N. 1, pp. 56-66, January 2010. GAS HYDRATES Juanes, Ruben; Bryant, Steven L. Models Provide Clues to How Methane Gas and Hydrate Coexist in Nature. Fire In The Ice, V. 8, N. 4, pp 7-11. Lee, Jao-Young; Schultheiss, Peter; Druce, Matthew; Lee Jaehyung. Pressure Core Sub Sampling for GH Production Tests at In Situ Effective Stress. Fire In The Ice, V. 8, N. 4, pp 16-17. MacDonald, Ian R. The HYFLUX Sea-Truth Expedition, 4-0 July 2009. Fire In The Ice, V. 8, N. 4, pp 12-15. Masuda, Yoshihiro; Yamamoto, Koji; Todaaki, Shimada; Ebinuma, Takao; Nagakubo, Sadao. Japans Methane Hydrate R&D Program Progresses to Phase 2. Fire In The Ice, V. 8, N. 4, pp 1-6. Santamarina, J. Carlos; Jang, Jaewon. Gas Production from Hydrate Bearing Sediments: Geomechanical Implications. Fire In The Ice, V. 8, N. 4, pp 18-22. GENERAL Cole, Lance. Resource Plays Help Fuel Optimism For Natural Gas. The American Oil & Gas Reporter, V. 53, N. 1, pp. 23, January 2010. Duey, Rhonda. Common Sense For Uncommon Plays. Harts E&P, V. 83, N. 1, pp. 10-11, January 2010. Glic, Michael; Hughes, Patrick. Energy Policy Outlook. Oil And Gas Investor, V. 30, N. 1, pp. 84-86, January 2010. Goodway, William. Need To Create Reservoirs Propels Geophysical Advances In Unconventional Resource Plays. The American Oil & Gas Reporter, V. 53, N. 1, pp. 74-80, January 2010. Kuuskraa, Vello A.; Stevens, Scott H. Worldwide Gas Shales And Unconventional Gas: A Status Report. December 7, 2009. http://www.rpsea.org/attachments/articles/239/KuuskraaHandoutPaperExpandedPresentWorldwideGasShalesPresentation.pdf Pranter, Matthew W.; Cole, Rex D.; Panjaitan, Henrikus; Sommer, Nicholas K. Sandstone-Body Dimensions In A Lower Coastal-Plain Depositional Setting: Lower Williams Fork Formation, Coal Canyon, Piceance Basin, Colorado. AAPG Bulletin, October 2009.
CALENDAR OF UNG EVENTS

January 26, 2010 February 11-12, 2010 February 1-3, 2010 February 2-4, 2010 February 13, 2010 February 23-25, 2010 February 25-26, 2010 March 15-16, 2010 March 21-24, 2010 March 30, 2010 March 31, 2010 March 31-April 1, 2010 April 6-8, 2010 April 11-14, 2010 April 13-14, 2010 April 27-29, 2010 May 3-6, 2010 May 10-12, 2010
SPE Denver Section Short Course. Horizontal Well Completions. Instructor Steve Maathis, Baker Hughes Inc. 707 17th Street, Denver, CO. Contact Darien OBrien 303-864-6015. NAPE Expo 2010, GRB Convention Center, Houston, TX. SPE Fractured & Tight Reservoir Characterization & Development Challenges. Workshop, Kuwait City, Kuwait. IADC/SPE Drilling Conference. Conference, New Orleans, Louisiana, LA. SPE Fractured and Tight Reservoir Characterization and Development Challenges. Kuwait City. SPE Unconventional Gas Conference. Conference, Pittsburgh, PA. CBM and Shale Gas Upstream Facilities. Petroleum Institute for Continuing Education. Denver, CO. Unconventional Gas. Marriott Hotel, Regents Park, London, UK. Gas Processors Association Annual Convention, Hilton, Hotel, Austin, TX. DUG: The Technical Workshop, Omni Fort Worth, Fort Worth, TX. DUG: Developing Unconventional Gas 2010, Omni Fort Worth, Fort Worth, TX. CBM and Shale Gas Upstream Facilities. Petroleum Institute for Continuing Education. Canada. Rocky Mountain Unconventional Resources Conference and Exhibition. OMNI Interlocken, Denver, CO.
May 16-18, 2010

May 17-20, 2010 May 26-30, 2010 June 6-10, 2010.
CBM and Shale Gas Upstream Facilities. Petroleum Institute for Continuing Education. London, UK. SPE Tight Gas Completions: Technology Applications and Best Practices. Workshop, Denver, CO. Offshore Technology Conference, Reliant Park, Houston, TX. 7th International Workshop on Methane Hydrate Research and Development. Te Papa, Wellington, New Zealand.
2010 AAPG Annual Convention & Exhibition. New Orleans, LA.
AAPG Southwest Section Annual Conference, Dallas, TX.
June 13-16, 2010
August 26-27, 2010
AAPG Rocky Mountain Section Meeting. Durango, CO.

Summer NAPE 2010, GRB Convention Center, Houston, TX.
SPE Unconventional Gas Production. Workshop, Krakow, Poland. SPE Western North America Regional Meeting. Conference, Anaheim, California. Gordon Research Conference on Natural Gas Hydrates. Colby College, Waterville, Maine.
September 20-22, 2010 October 19-21, 2010 November 203, 2010

September 12-15, 2010
SPE Annual Technical Conference and Exhibition. Conference, Florence, Italy. CSUG/SPE Canadian Unconventional Resources and international Petroleum Conference. BMO Center at Stampede Park, Calgary, Alberta Canada SPE Tight Gas Completions Conference. Conference, San Antonio, TX. 2
2010 AAPG International Comference & Exhibition, Calgary, AB, Canada.
JANUARY FEATURE Granite Wash

Texas, Oklahoma
OVER VI EW : GR ANI TE W ASH
Peggy Williams, Hart Oil and Gas Investor The Granite Wash is one of a series of Midcontinent Wash plays that run northwest to southeast across the Panhandle of Texas and into Oklahoma, occupying a swath 160 miles long and 30 miles wide. The unusual reservoir consists of stacked, submarine fans made up of detritus shed from uplifts to the west and south. Individual lobes can cover several sections and reach some 70 feet thick. Deposition spanned several geologic ages, and the variety of source terrains translated into a potpourri of mineralogies in the resulting Wash sediments. Depths run from 300 feet to 19,000 feet, and the entire Wash package can be as thin as 10 feet to as thick as 4,000 feet. The complex series of sands, shales and siltstones are subdivided by various schemes that evolved within companies and within specific segments of the play. Designations include the Granite, Marmaton, Des Moines, Strawn, Cherokee, Red Fork, Cleveland and Atoka washes. Geologists have long had a broad familiarity with the Wash deposits, as thousands of wells drilled through the section on the way to deeper Morrow and Hunton targets. These latter zones yielded immense gas fields that dominated the Panhandle for decades. By the mid-1960s, certain portions of the Wash became targets in their own right, and today more than 4,200 wells have been completed in various Wash reservoirs. The Granite Wash defies categorization. Parts of the deposit qualify as conventional, sporting sand layers that have sufficient porosity and permeability to produce stout volumes of gas and liquids with little technological intervention. Much of the tremendous slab of sediment resides solidly in the unconventional realm, however, with poor reservoir characteristics but whopping volumes of gas-in-place. Likewise, pressure regimes vary from noticeably underpressured to gradients as high as 0.7 psi per foot. To further complicate matters, Upper Granite Wash zones are much oiler than lower zones. In the Texas Panhandle, liquid yields can vary from 60 to 70 barrels per million in the upper part of the sequence to eight to 10 barrels below. The entire package of agglomerated wedge-shaped Wash deposits carries hydrocarbons, but water production from some zones can be onerous. And, the Granite Wash play presents both areas with thick amalgamations of stacked zones and areas of single zones.
http://certmapper.cr.usgs.gov/data/noga95/prov58/text/prov58.pdf INTRODUCTION 5827. WASHES PLAY The Washes Play exists in the southwestern part of this province and extends into parts of the fold belt of the Southern Oklahoma Province. The play consists of eroded and recycled sedimentary and igneous debris (washes) weathered from the rocks uplifted during the Pennsylvanian and Early Permian tectonism (principally the Amarillo-Wichita Uplift) that created the present-day Anadarko Basin. These undifferentiated strata range in age from Pennsylvanian Morrowan through Permian Wolfcampian and generally drape over and interfinger with the strata of other Pennsylvanian and Permian plays adjacent to the Wichita Mountains front. Drilling depths to the top of these washes range from less than 100 ft to an estimated maximum of about 15,000 ft. We recognize that these rocks do not represent a single homogeneous package of so-called "granite" wash, but are eroded remnants and mixtures of many lithologies. However, their detrital nature, their proximity to the source, their genetic relationship to the tectonic development of the AmarilloWichita Uplift, and their similarities with respect to hydrocarbon source and trap type are their defining features, and are the characteristics that group these rocks into a single play. Reservoirs: Reservoir rocks are washes that range in age from Pennsylvanian to early Permian. Clast lithologies include limestones, cherts, dolomites, granites, and mixtures eroded from Mississippian, Devonian, Cambrian, and Ordovician sedimentary rocks, and Precambrian crystalline rocks. Compositionally, they lie in reverse stratigraphic order to that of the parent rocks, that is, Mississippian parent rocks sourced the oldest of the washes and Precambrian crystalline parent rocks are the sources of the youngest washes. These washes produce primarily gas but some oil as well. Production begins at depths as shallow as 300 ft but most major reservoirs produce between depths of 4,700 and 13,000 ft. Source rocks and timing: Because of the proximity of this play to virtually all source rocks in the basin, a variety of petroleum source rocks are expected. Because of the highly faulted nature of the area, thermally mature shales of the nearby deep Anadarko Basin are viable source rocks. Mature Pennsylvanian shales that interfinger with the washes along the northern play boundary are also likely
Anadarko Basin Province (058) U.S.G.S. By Henry Mitchell and Timothy Hester
source rocks. Both vertical and horizontal migration are probably important in this play. Detailed discussions of these (and other) hydrocarbon sources can be found in other play descriptions. The wide variety of source rocks, with varying mixtures of types II and III organic matter, is expected to generate both oil and gas. The favorable timing of hydrocarbon generation, migration, and trap formation in this play is evidenced by the presence of several major accumulations. Traps: Examples of all three common trap types--structural, stratigraphic, and combination--exist in this play, but structure seems to play the dominant role. Pennsylvanian and Permian shales, and Pennsylvanian limestones provide seals for reservoirs. Exploration status: This play is in a mature stage of exploration. More than 7,600 wells have penetrated various wash lithologies in the Anadarko Basin Province (055). About 2,700 of those produce from 32 major reservoirs assigned to this play; of these, 25 are gas fields and 7 are oil fields. The earliest producing well was completed in 1934, the latest in 1991. The largest gas accumulation assigned to this play is at Hemphill Granite Wash field, with an estimated ultimate recovery of 1.1 TCFG. The largest oil accumulation is at Mobeetie field, with 7 MMBO. Although some washes in this play have been drilled to depths of 15,000 ft or more, only 39 wells reported tops deeper than 13,000 ft. Resource potential: The potential for future major hydrocarbon discoveries in this play is projected to be fair to moderate. It has an excellent production history, including a few discoveries in recent years. Limiting factors for future discoveries include diagenetic porosity loss in parts of these deposits (Dutton, 1982) and a possible lack of hydrocarbon seals. Historical discovery, production, and well completion data were used to assess this play.
PALO DURO BASIN PROVINCE (043) U.S.G.S. By Mahlon M. Ball and Mitchell E. Henry
http://certmapper.cr.usgs.gov/data/noga95/prov43/text/prov43.pdf INTRODUCTION The Palo Duro Basin Province covers an area of about 22,700 sq mi in the Texas Panhandle, eastern New Mexico, and Oklahoma. The largest geologic feature in the province is the Palo Duro Basin which is bounded to the north by the Amarillo Uplift, to the south by the Matador Arch, and to the east and west by minor structural highs that separate it from the Hardeman and Tucumcari Basins. The Palo Duro Basin, containing about 10,000 ft of sedimentary rocks ranging from Precambrian to Tertiary, deepens generally from north to south; however, some of the more deeply buried rocks occur in a down-dropped block south of the Amarillo Uplift. The central portion of the province does not currently produce oil or gas, but production does exist along the southern border (Matador Arch) and along the northern border south of the Amarillo Uplift in rocks of Mississippian, Pennsylvanian and Permian age. One play was defined and individually assessed in the province, the Upper Paleozoic Play (4301). CONVENTIONAL PLAYS 4301. UPPER PALEOZOIC PLAY The definitive characteristics of this play are its setting in the central portion of the Palo Duro Basin and the Pennsylvanian and Permian ages of its reservoirs. The main weakness of this play is apparent lack of source rock. Reservoirs: Reservoirs are mainly of granite wash with a limited amount of limestone. Ages include Pennsylvanian and Permian. Porosities range from 10 to 18 percent, and permeabilities range from 30 to over 600 mD. Drilling depths vary between 3,500 and 7,100 ft. Source rocks: The source of this plays oil and gas is unknown. The deepest local structural depression is the Wittenburg Trough, where sediment-rock thicknesses reach 9,000 ft. Timing and migration of hydrocarbons: Traps, reservoirs, and seals were all in existence by the end of Permian time. It follows that maturation and migration commenced at some later time and may continue to the present. Traps: Traps are predominantly structural, with four of six fields listing anticlines as the controlling structure. Exploration status: The production from this play through 1990 consists of 15.5 MMBO and 16 BCFG. Of the plays five oil fields, Manante, discovered in 1969, is the largest with a production of 44 MMBO. Kerrick, discovered in 1954, is the plays only gas field and has produced 16 BCFG. The first oil discovery occurred in 1954 but four of the plays oil fields were discovered in 1979-1983. The lack of identifiable source rocks in this play probably explains the relatively small size and number of its hydrocarbon accumulations. Resource potential: Apparent lack of source rock limits potential for discoveries in this play.
http://www.beg.utexas.edu/environqlty/co2seq/co2data/0granitewash.htm General Setting The Palo Duro Basin of the Texas Panhandle may be considered a northern extension of the Permian Basin of West Texas and eastern New Mexico. A basement high called the Matador Arch separates the two basins. The Matador Arch and other block-faulted Precambrian basement highs to the north, such as the Amarillo Uplift and the Bravo Dome, form the boundaries of the basin. The target reservoir in this basin, the Pennsylvanian Granite Wash, was deposited in a series of alluvial fans and fan deltas that formed rims around these structural highs that developed during the Pennsylvanian Period in response to major continental collision associated with the Ouachita Orogeny (Dutton and others, 1982a). Conversely, units of early Paleozoic age (older than the Granite Wash) were deposited on a stable, shallow shelf periodically covered by epicontinental seas. Eventually erosion of the basement uplifts led to their planation and burial, which was followed by deposition of a series of Permian-age red-bed and evaporite facies. It is these evaporites that form the top seal for the Granite Wash. Information Search and Selection In some cases, we did not find data for the Granite Wash as a separate hydrologic unit. However, there may have been data available for a unit called the "deep brine aquifer," which includes the Granite Wash and time-equivalent carbonates. In such instances, we have specifically mentioned that the data are for the deep brine aquifer as a whole. Granite Wash is locally used for deep-well injection.
Granite Wash, Palo Duro Basin, Texas. Bureau of Economic Geology.
http://www.beg.utexas.edu/gccc/finalreport.pdf
OK LAHOM A GEOLOGI CAL SUR VEY

www.ogs.ou.edu/GraniteWash/GWOverview.ppt The Granite Wash is an alluvial wash which was eroded from the ancestral Wichita/Amarillo Uplift and deposited along the bordering north and south flanks. A multitude of operators have completed over, 4,200 wells in the Granite, Des Moines, Strawn, Cherokee and Atoka Wash from 1956 to present. Depths range from 300 ft. to 19,000 ft. and pay zone span from 10-4000 ft. Peak production rates of 14MMcf/d and 2000 BOPD have been reported. However the high degree of variability in production outcome and pay quality has made sustainable development of this play a challenge. Oklahoma Geological Survey Circular 1-6, 2001 Average Production for Wash wells Anadarko Basin 1,150 MMCF with 24 MBO Cherokee Wash Middle 3,241 MMCF Cherokee Wash Lower 2,061 MMCF Red Fork Wash 1,161 MMCF Cleveland Wash 1,012 MMCF Granite Wash 726 MMCF Atoka Wash 385 MMCF 1,985 Total Wells included in this study http://www.ogs.ou.edu/GraniteWash/Buffalo%20Wallow%20Field.pd Paul W. Smith, Walter J. Hendrickson and Ronald J. Woods
W EBSI TES
TEXAS BLM New Mexico, Texas, Oklahoma, Kansas Bureau of Economic Geology Dallas Geological Society East Texas Geological Society East Texas SPE PTTC Central & East Gulf Region Railroad Commission of Texas
http://www.blm.gov/nm/st/en.html http://www.beg.utexas.edu/ http://www.dgs.org/ http://www.easttexasgeo.com/publications.asp http://easttexas.spe.org/ http://www.pttc.org/central_eastern/central_eastern_gulf_home.htm http://www.rrc.state.tx.us/ 5

Region 6 EPA Texas Independent Producers and Royalty Owners Association The Texas Commission on Environmental Quality. OKLAHOMA Oklahoma City Geological Society Oklahoma Corporation Commission Oklahoma Department of Environmental Quality Oklahoma Energy Resources Board Oklahoma Geological Survey Oklahoma Independent Petroleum Association Oklahoma State University Geology Department PTTC Southern Midcontinent Sarkey's Energy Center SPE Mid-Continent Home Page SPE Oklahoma City Tulsa Geological Society University of Oklahoma School of Geology and Geophysics ACTIVE COMPANIES Apache Corp. BNK Petroleum Chesapeake Energy Corp. Cimarex Energy Co. Cordillera Energy Partners III LLC Devon Energy Co. Forest Oil Corp. Newfield Exploration Co. Penn Virginia Corp. Plains Exploration and Production Questar Corp. Range Resources Corp. St. Mary Land and Exploration Unit Corp.
http://www.epa.gov/region6/ http://www.tipro.org/ http://163.234.20.106/index.html
http://www.ocgs.org/ http://www.occ.state.ok.us/ http://www.deq.state.ok.us/ http://www.oerb.com/ http://www.ogs.ou.edu/ http://www.oipa.com/custom/index.php http://www.okstate.edu/geology/ http://www.ogs.ou.edu/PTTC/highlights.php http://www.sec.ou.edu/ http://www.tulsaweb.com/midcont-spe/index.htm http://www.speokc.org/ http://tulsageology.org/ http://geology.ou.edu/ http://www.apachecorp.com/ http://www.bnkpetroleum.com/soho/beta/ http://www.chk.com/Pages/default.aspx http://www.cimarex.com/ http://www.cordilleraep.com/ http://www.devonenergy.com/Pages/devon_energy_home.aspx http://www.forestoil.com/ http://www.newfld.com/ http://www.pennvirginia.com/ http://www.pxp.com/ http://www.questarcorp.com/ http://www.rangeresources.com/ http://stmaryland.com/ http://www.unitcorp.com/
ACTI VE COM P AN I ES
On Oct. 29, 2009, Apache announced that the Hostetter #1-23H well located in Washita County, Okla., was producing 17 million cubic feet per day (MMcfd) and 800 barrels of liquid hydrocarbons per day. (See Apache's Hostetter #1-23H well in Oklahoma's Granite Wash play producing 17 MMcf, 800 Bpd). We completed drilling our second operated horizontal Granite Wash well on our Stiles Ranch acreage in the Texas Panhandle almost 50 miles west of the Hostetter well. Logs indicated more than 4,000 feet of hydrocarbon-saturated sand. We plan to begin completion operations in the fourth quarter. The Granite Wash has long been a core stacked play for Apaches Central Region. We have drilled hundreds of vertical wells in the play over the past decade. As a result, we have over 200,000 gross acres held-by-production in the play. Horizontal multi-stage fracture stimulation technology has vastly improved the potential recoveries. The high associated liquid yields should make this play competitive with any of the resource plays. We now have two horizontal rigs running in the Granite Wash fairway and planned to add a third in November. In 2010, we expect to operate four horizontal rigs, which will result in at least 20 new wells. Also during the third quarter, Apache completed the Tyler #2-55 in Wheeler County, Texas, the second well in a four-well, drill-to-earn, farm-in from BP. The well found 125 feet of pay in the Atoka Wash at 17,000 feet and averaged 5 MMcfd during its first month on production. Additional tests are scheduled in each of the two remaining BP sections for 2010, followed by an infill development program Wells Fargo Energy Conference, December 9, 2009
http://files.shareholder.com/downloads/APA/741990378x0x337285/31999f89-b8b8-48af-9a92-8d56580e193c/Apache_WellsFargo_20091209.pdf
Apache Corp.
Bankers Petroleum Ltd.

Palo Duro Basin, Texas The Company holds approximately 150,000 net acres of land in the Palo Duro Basin, Texas, located approximately 260 miles northwest of the Fort Worth Basin which is home to the Barnett Shale play. The Palo Duro Basin shale gas play encompasses the counties of Briscoe, Floyd and Motley and targets Pennsylvanian-aged shales that exist at depths between 7,000 and 10,500 feet in the Bend group. The Company has working interests that range from 25% to 73%.The Vintage acquisition in 2006 included approximately 118,000 net acres in the Palo Duro Basin, which increased the Companys land position in the basin in what management believes is the core area for the Bend shale. In May 2007, the Company sold a 27% interest in the total acreage of the Palo Duro Basin to Palo Duro Energy for a total consideration of $19.5 million, which at that time reduced the Companys total acreage to approximately 260,000 net acres. See Development of the Business. Work to date by the Company and a core study confirmed that the rocks in some parts of the Palo Duro Basin contain substantial volumes of gas and have some unique rock properties that may require different stimulation and completion techniques than those commonly used in other shale basins. The Company is retaining acreage over the area that it believes has the best potential for Bend shale and Granite Wash Sands and has released acreage it does not believe to be as useful . Since 2006 the Company drilled a number of wells in the Basin and has one well the Black 4-1 that produced gas from the granite wash sands and is currently shut in. The well encountered a prospective 280 foot thick Bend shale interval. A fracture stimulation of the Bend shale interval is being planned that will incorporate new techniques recommended by industry specialists. Annual Information Form Dated March 30, 2009 http://www.bnkpetroleum.com/documents/2008AnnualInfo.pdf
BNK Petroleum
Chesapeake Energy Corp.
In the various Wash plays of the Anadarko Basin, Chesapeake is the largest leasehold owner with approximately 360,000 net acres and also the most active driller and largest producer. In the Colony Granite Wash, Chesapeake is the largest leasehold owner with 60,000 net acres and is also the most active driller and largest producer in the play. During the second quarter, Chesapeakes average daily net production of 75 million cubic feet equivalent increased approximately 30% over the first quarter and approximately 85% over the 2008 second quarter. Chesapeake is currently producing approximately 90 million cubic feet equivalent net per day (165 million cubic feet equivalent gross operated) from the Colony Granite Wash and anticipates reaching approximately 105 million cubic feet equivalent net per day (190 million cubic feet equivalent gross operated) by year-end 2009 and approximately 140 million cubic feet equivalent net per day (250 million cubic feet equivalent gross operated) by year-end 2010. In the Texas Panhandle Granite Wash, Chesapeake is one of the largest leasehold owners with 40,000 net acres and also one of the most active drillers and largest producers in the play. During the second quarter, Chesapeakes average daily net production of 70 million cubic feet equivalent in the Texas Panhandle Granite Wash increased approximately 5% over the 2009 first quarter and approximately 15% over the 2008 second quarter. Chesapeake is currently producing approximately 70 million cubic feet equivalent net per day (95 million cubic feet equivalent gross operated) from the Texas Panhandle Granite Wash and anticipates reaching approximately 75 million cubic feet equivalent net per day (100 million cubic feet equivalent gross operated) by year-end 2009 and approximately 80 million cubic feet equivalent net per day (110 million cubic feet equivalent gross operated) by year-end 2010. To further develop its 40,000 net acres of Texas Panhandle Granite Wash leasehold, Chesapeake anticipates operating an average of two rigs in the second half of 2009 and in 2010 to drill approximately 10 and 20 net wells, respectively.
January 2010 Investor Presentation http://www.chk.com/investors/documents/latest_ir_presentation.pdf
In the Texas Panhandle Cimarex drilled 118 gross (84 net) wells with 96% being completed as producers in 2008. Most of these wells targeted the Granite Was Formation in Roberts and Hamphill counties at depths ranging from 11,000-14,000 ft. In the Granite Wash the Hemphill field contributes 3.8% of total proved reserves with 97% working interest and average depth of 11,000 ft. The Mendota field contributes 2.0% of total proved reserves, with 78.5 working interest at an average depth of 11,000 ft. Finally the Red Deer Creek field contributes 2.3% of total proved reserves with 63.1% working interest at 11,000 ft. depth. Cimarex will drill a couple of horizontal wells in the Granite Wash for the remainder of 2009. It is monitoring industry activity and doesnt see its acreage position delivering the kind of potential thats recently made the splash, but will be out drilling andwatching the activity and hope to take advantage of any new developments that the play brings.
Cimarex
Cordillera Energy Partners III LLC
By Don Lyle Cordillera Energy Partners, formed with equity commitments from EnCap Investments L.P. and other institutional investors, is only 10 years old, but the same core management team is now operating and building its third entity and has a deep reputation as a top performer in many North American hydrocarbon basins. The company is considering developing a fourth organization under the same team; experienced and technicallyfocused managers who continue to build upon previous experiences at some of the industrys most notable oil and gas companies. This foundation combined with the companys significant position in a world class resource play called the Granite Wash in the Texas Panhandle provides tremendous value creation opportunities for the companys investors as well as a dependable supply of domestic energy to the American consumer.
George Solich, a veteran of operations with HS Resources and Apache Corp., heads that team as president and chief executive officer, and leads the acquire-and-exploit operation. The first organization, Energy Partners I LLC, worked the Anadarko, Delaware and San Juan basins, and in mid-2003, threeand-a-half years after its inception, grew into a substantial company with 250 Bcfge in proved reserves, 30 MMcfge/d of production and $35 million in annual cash flow. At that point, it sold its assets to Patina Oil & Gas for $247 million in cash and Patina warrants. The management team and investors then formed Cordillera Energy Partners II with $200 million in private equity and $300 million in credit from six banks headed by JP Morgan Chase. The strategy remained the same, and so did the success. By the middle of 2008 the company put together 725 Bcfge in proved reserves, almost 50 MMcfge/d in production from 600 wells and had an annual cash flow of more than $200 million. Its properties were in the Douglas, Cleveland, Granite Wash, Atoka and Morrow formations in the Texas Panhandle; the West Central Anadarko Basin and the Cotton Valley Sand and Lime, Hosston, Pettet and Travis Peak formations in the East Texas Basin. It sold all of the assets again in September, 2008, for $1.02 billion. The East Texas and Texas Panhandle properties went to Forest Oil for $529 million in cash and 7.25 million shares of Forest Oil stock for a total value of some $873 million. In addition to the East Texas properties, that acquisition gave Forest 67,700 gross, 54,000 net, acres in the Granite Wash in Buffalo Wallow Field with 206 Bcfge in estimated proved reserves and production from the Atoka and Morrow formations as well as the Granite Wash. Forest used the Panhandle properties as part of a base to become one of the more active and successful operators in the Granite Wash. "The Cordillera II divestitures fit perfectly in our strategy to deliver excellent returns to our shareholders while keeping our exceptional franchise together to continue to build Cordillera III," Solich said at the time. In March, 2007, even before the sale, the team planned to form Cordillera Energy Partners III LLC, again with the help of $500 million in equity from EnCap and its institutional investors and $600 million in credit from the JP Morgan Chase bank group. The new iteration stayed in the Texas Panhandle, Western Oklahoma and the East Texas Basin, but it also started looking at the potential of the Marcellus Gas Shale play in Appalachia. By the fourth quarter of 2009, the newest Cordillera claimed production of nearly 25 MMcfge/d and more than 2,300 low-risk vertical and horizontal drilling locations in the Granite Wash, Tonkawa, Cleveland, Atoka and Morrow formations. By its 10th year of operations, the management team had acquired properties for $700 million and drilled more than 235 vertical and horizontal wells for another $300 million in investments. In a February, 2010, presentation during an Oil and Gas Investor seminar, Cordillera executives said the company was an early developer of the Granite Wash play and extended the large Buffalo Wallow segment of that play 20 miles to the northeast in the Texas Panhandle. It also held 98,000 gross, 44,000 net, acres of rights in the Granite Wash, making it one of the top five leaseholders in the play. As it entered 2010, the company had two rigs working the Granite Wash and planned to double that number by mid-year. Those rigs aimed at 20 to 30 vertical and five to ten horizontal wells during the year. By the end of 2009, Cordillera III already had accumulated 392 Bcfge in proved reserves. While some operators have gone exclusively to horizontal drilling in the play, Cordillera drills both horizontal and vertical wells with good reasons. Vertical wells are less expensive and help bring proved reserves on line more quickly. They also set up locations for future horizontal wells, the company said. Horizontal wells maximize discounted net present value and generate higher production and cash flow. During 2009, Cordillera was among the more active operations in the Granite Wash play with wells in the Buffalo Hollow area in Hemphill County and the Red Deer Creek area in Roberts County in the Texas Panhandle. Contact: R. Steve Fitzgerald, Vice President, Business Development, sfitz@cordilleraep.com 817-343-7566 Letting the Tight Gas Out of the Granite Wash Hart DUG Conference April 7, 2009 http://www.cordilleraep.com/file/board_pres2.pdf
Jan 14, 2010 Forest Oil Corporation (announced results from its third and fourth operated horizontal Texas Panhandle Granite Wash wells. In December of 2009, the third operated horizontal well produced at a 24-hour production rate of 15.1 MMcf/d, 1,200 Bbls/d of oil and condensate and 2,400 Bbls/d of natural gas liquids, for an equivalent rate of 37 MMcfe/d. In January of 2010, the fourth operated horizontal well produced at a 24-hour production rate of 16.0 MMcf/d, 1,300 Bbls/d of oil and condensate and 2,200 Bbls/d of natural gas liquids, for an equivalent rate of 37 MMcfe/d. These wells were drilled and completed with horizontal legs of approximately 4,200 feet and nine to ten stages of fracture stimulation for an average total well cost of approximately $6.8 million. 135,000 gross acres (94,000 net) prospective for the Atoka, Granite Wash, Cleveland, Douglas, and Morrow Transition to horizontal drilling; expect to drill 20 25 operated horizontal wells in 2010 Acreage accumulated through grass roots leasing, farm outs, and acquisitions Frac mapping was performed to allow for more efficient spacing and less interference between wells Large company database from over 400 well bores Pay extends over large area in Texas Panhandle and Western OK Depths of play range from 13,000 to 17,000 and the total thickness of this deposition ranges from 1,500 to 3,500 9
Forest Oil
Other potential objectives in the Morrow, Douglas, Cleveland, Novi Lime, St. Louis Lime, and Tonkawa Between 8 to 14 objective zones over entire acreage position High liquids content Excellent multi-zone horizontal potential First operated horizontal in the Granite Wash IPd at 17 MMcfe/d (1/3rds liquids) Second operated horizontal in the Granite Wash IPd at 30 MMcfe/d (2/3rds liquids) Shallow Morrow horizontal tested at 7.5 MMcfe/d with cost of $3.9 million Expect to run 4 horizontal rigs TD Newcrest London Unconventional Oil & Gas Forum 2010 January 11, 2010 http://www.forestoil.com/downloads/present_td_newcrest_jan2010.pdf
In late 2008, Newfield drilled its first horizontal well in the Granite Wash play, located in the Anadarko Basin, and additional wells are planned. It has 90-100 remaining horizontal locations in the play. Production from Stiles Ranch, its largest Granite Wash field, reached a record level of 130 MMcfe/d (gross) in early 2009. The company plans to operate one or two drilling rigs in its Granite Wash play. It recently drilled our first horizontal well in this play and are encouraged by the initial results. The company plans to drill about 10 additional horizontal wells in the field in 2009 and invest $60 $70 million. In July 2009, the Company provided an update on its recent successes in the Granite Wash play, located in the Texas Panhandle and western Oklahoma. Since late 2008, Newfield has operated the drilling and completion of seven horizontal Granite Wash wells. The seven wells had average initial production rates of 22 MMcfe/d. Three operated drilling rigs are running in the field today. An extensive drilling program has yielded gas production from more than 30 horizons in the Stiles Ranch Field, ranging from 12,000' to 15,000'. We believe there are multiple prospective zones for horizontal development. We currently have approximately 20,000 net acres in the Stiles Ranch field and an additional 15,000 net acres in western Oklahoma. Approximately 80% of the acreage is currently held-by-production. A minimum of a three-rig program is planned for the remainder of 2009 where we expect to drill about 14 wells. Wells Fargo Energy Conference December 9, 2009 http://www.newfield.com/pdf/WellsFargoEnergyConfDec2009.pdf
Newfield
Friday, October 30, 2009 During the third quarter of 2009, Penn Virginia participated in two (0.8 net) nonoperated Granite Wash horizontal wells, one of which was successful and the other of which is waiting on completion. Production in the third quarter of 2009 was 36.7 MMcfe per day, 110 percent higher than the 17.5 MMcfe per day produced in the third quarter of 2008 and three percent lower than the 38.0 MMcfe per day produced in the second quarter of 2009. The year-overyear increase was primarily attributable to a 793 percent increase in Granite Wash production from 2.8 MMcfe per day in the third quarter of 2008 to 24.6 MMcfe per day in the third quarter of 2009. Granite Wash production was ten percent higher in the third quarter of 2009 as compared to the 22.7 MMcfe per day produced in the second quarter of 2009, while daily production from other Mid-Continent plays of 12.1 MMcfe per day was 21 percent lower than the 15.3 MMcfe per day of second quarter production due to natural production declines.Due to the strong results from the Granite Wash play and compelling economics, in late October we deployed an operated rig to this play. In addition, as
Penn Virginia
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previously announced, we continue to add to our acreage position in the Granite Wash play and have expanded our position in two additional Granite Wash prospects to increase our acreage position from approximately 10,000 net acres at year-end 2008 to approximately 17,000 net acres currently, with a goal of reaching 20,000 net acres by year-end 2009. Highlights Inventory Approximately 20K net acres in western Oklahoma Approximately 145 gross horizontal drilling locations (160-acre spacing), excluding potential locations in new prospect areas Over 200 Bcfe of 3P reserves (76 Bcfe proved) at YE08, excluding potential reserves added with recent leasing and 2009 success Plan to lease additional acreage in 2010 Significant progress over the past two years with a shift to horizontal development and excellent economics PVA deployed an operated rig into the play in November 2009 (currently CHK is operating 2 rigs in the AMI) significant drilling program expected in 2010 in the AMI (up to 32 wells) an additional rig is expected to be added in 2010 to test new acreage (up to 6 wells) PVAs Granite Wash acreage is primarily in Washita County, OK 25 horizontal wells have drilled through 3Q-0 3Q 09 Net production of 25 MMcfe/d Best core play type in terms of F&D cost and rate of return at any price level EURs for first 23 wells averaged 6.2 Bcfe, with an average 30-day rate of 8.2 MMcfe/d Average EUR for the last six wells was 7.5 Bcfe, with an average 30-day rate of 10.6 MMcfe/d (avg. IP of 14.6 MMcfe/d) Typical well costs of $6.3MM 1,200 Btu gas and approximately 40% of production is crude oil The BMO Capital Markets 2010 Unconventional Resource Conference Investor Presentation January 12, 2010 http://www.pennvirginia.com/pages/pdf/PVA_BMO_Presentation.pdf
2008 Annual Report Mid-Continent Region We have interests in oil and gas properties on approximately 532,292 gross leasehold acres with 715 square miles of 3-D seismic located in Texas and Oklahoma. Development activities are concentrated in the Courson Ranch area located primarily in Roberts and Hutchinson Counties in Texas as well as in the Wheeler and Marvin Lake Prospects in Wheeler and Hemphill Counties in Texas. The structural and stratigraphic objectives include Cleveland Sands, Mississippian carbonates, Granite and Atoka Wash, found at varying depths. Exploration opportunities of various stratigraphic and structural plays have been identified in the Mid-Continent Region on a concentration of ran ches principally located in Roberts and Hutchinson Counties. We spent $102.8 million on exploration and development projects in this region in 2008. Our net average daily sales volume from our Mid-Continent Region properties in the fourth quarter 2008 was5.4 MBOE per day. In 2009, we plan to concentrate our development drilling on the Wheeler and Marvin Lake Prospects as well as additional exploration drilling at the Courson and Turkey Track Ranches at a reduced rate and have targeted production cost reductions.
Plains Exploration and Production
Questar
October 27, 2009 Horizontal Granite Wash potential under evaluation in Oklahoma and Texas. The company recently completed a horizontal Granite Wash B (Colony Wash) well in Washita Co, OK. The Roxanne 2-17H went to sales on October 9 with a peak 24-hour production rate of 5.5 MMcfd and 660 bopd on a 22/64-inch choke. Questar E&P has a 56% working interest in the well. In the Texas Panhandle, the company is currently drilling its first operated horizontal Granite Wash well. The Puryear 5-28H (35% WI), located in Wheeler Co, will target the Caldwell Granite Wash zone with a projected measured depth of 17,200 feet. Questar E&P has over 24,000 net acres in the TX and OK Granite Wash plays. For 2010, the company anticipates operating at least one drilling rig targeting both horizontal and vertical Granite Wash development.
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The Southwest Area conducts drilling, production and field operations in the Barnett Shale of North Central Texas, the Permian Basin of West Texas and eastern New Mexico, and the East Texas Basin, as well as in the Texas Panhandle and the Anadarko Basin of western Oklahoma. In the Southwest Area, we own 2,308 net producing wells, 96% of which we operate. Our average working interest is 72%. We have approximately 841,000 gross (547,000 net) acres under lease. Total proved reserves increased 255.8 Bcfe, or 24%, at December 31, 2008 when compared to year-end 2007. Production and an unfavorable reserve revision for lower prices was more than offset by property purchases (95.6 Bcfe) and drilling additions (293.4 Bcfe). Annual production increased 22% over 2007. During 2008, the region spent $536.2 million to drill 242 (209.8 net) development wells, of which 237 (205.8 net) were productive, and 18 (14.0 net) exploratory wells, of which 13 (11.1 net) were productive. During the year, the region achieved a 97% drilling success rate. At December 31, 2008, the Southwest Area had a development inventory of 552 proven drilling locations and 352 proven recompletions. During the year, the Southwest Area drilled 88 proven locations and added 263 new locations. Development projects include recompletions, infill drilling and to a lesser extent, installation of secondary recovery projects. These activities also include increasing reserves and production through cost control, upgrading lifting equipment, improving gathering systems and surface facilities, and performing restimulations and refracturing operations. Feb 20, 2008 The Midcontinent division drilled 37 (29.2 net) wells during the quarter with a 100% success rate. A deep Anadarko Basin Springer completion delivered first gas sales at production rates of 12.5 (3.2 net) Mmcfe per day. Two higher interest offsets are planned, with the first to spud this month. In addition, the division has a three-rig program drilling Granite Wash wells in the Texas Panhandle and central Oklahoma. During the quarter, a vertical Granite Wash test completed for 3.1 (2.3 net) Mmcfe per day in the Texas Panhandle, delineating multiple offset locations. The northern Oklahoma oil field redevelopment play continues with two rigs actively drilling. One Wilcox test in the play is currently producing 1.1 (0.9 net) Mmcfe per day. A proprietary 3-D seismic extension to the project has commenced. One rig remains active in the Watonga/Chickasha area in Oklahoma, where a recent completion went on sales late in the fourth quarter at a rate of 3.6 (2.8 net) Mmcfe per day. For 2008, the Midcontinent division plans 123 (93 net) wells.
Range Resources
St. Mary Land and Exploration

In the Anadarko Basin, St. Mary is actively employing 3D seismic technology to identify deep geologic targets in the Springer Formation. Our success in this program has made St. Mary a sought-after partner for other companies with acreage in the area. It also havs an acreage position in far-western Oklahoma that has potential for Granite Wash development. Since this acreage position is held by production (HBP), we can monitor industry activity and develop our acreage in a manner that optimizes the value of the property. Wells Fargo Exploration and Production, Energy Services, and UtilitySymposium, New York City December 9, 2009 http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9MjU1MjB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Unit Corporation
January 19, 2010 Unit Corporation announced its initial 2010 capital expenditures budget for all of its business segments of $467 million, an increase of 57% over estimated 2009 capital expenditures. Of this amount, $365 million is budgeted for its oil and natural gas segment, which includes $319 million for drilling and completion activities and is a 66% increase over estimated 2009 capital expenditures, $49 million for its contract drilling segment, a 27% decrease over estimated 2009 capital expenditures, and $53 million for its mid-stream segment, a 446% increase over estimated 2009 capital expenditures. "Our increase in capital spending in the midstream segment is attributable to increased drilling activity we anticipate by operators in the areas of our existing gathering systems resulting in new well connections. Additionally, we will be adding a second processing facility in the Granite Wash play to accommodate the increased drilling activity of our oil and natural gas segment as well as that of other operators."
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ONLI NE R ESOUR CES

Ball, Mahlon M.; Henry, Mitchell E. Palo Duro Basin Province (043). http://certmapper.cr.usgs.gov/data/noga95/prov43/text/prov43.pdf Boyd, Dan T. Oklahoma 2008 Drilling Highlights. http://www.ogs.ou.edu/pdf/2008-DrillingHighlights.pdf Bureau of Economic Geology. Granite Wash, Palo Duro Basin, Texas. http://www.beg.utexas.edu/environqlty/co2seq/co2data/0granitewash.htm Cardott, Brian J. Bibliography of Anadarko Basin. http://www.ogs.ou.edu/fossilfuels/coalpdfs/Anadarko_Basin.pdf CoreLab Granite Wash Study. http://www.corelab.com/rm/irs/studies/GraniteWash.aspx Criag, Kevin. PDC Technology Redefines Standards. Harts E&P, February 1, 2009. http://www.epmag.com/Magazine/2009/2/item28635.php Dar, Vinod. The Granite Wash: An Emerging Tight Sands Natural Gas Play in the U.S. January 06, 2010 http://seekingalpha.com/article/181187-the-granite-wash-an-emerging-tight-sands-natural-gas-play-in-the-u-s Emerson, Brent. Multilaterals Lower Development Costs In Challenging Gas Plays. Harts E&P, September 1, 2009. http://www.epmag.com/Magazine/2009/9/item44540.php Forest Oil. Granite Wash Greater Buffalo Wallow Area. July 28, 2009 http://www.forestoil.com/downloads/present_bw_granite_wash_update.pdf Fox, Eric. What The Heck Is The Granite Wash? May 13, 2009. http://stocks.investopedia.com/stock-analysis/2009/what-the-heck-is-the-granite-wash-fst-sm-xec-pva0513.aspx?partner=aol Henry, Mitchell, E.; Hester, Timothy C. U.S.G.S. Anadarko Basin Province (058). http://certmapper.cr.usgs.gov/data/noga95/prov58/text/prov58.pdf Horizontal Drilling Of Deep Granite Wash Reservoirs In The Anadarko Basin Of Oklahoma And Texas http://www.tulsageology.org/documents/GS-1001.pdf Horizontal Wells Revive Interest in Granite Wash Play. http://www.pttc.org/newsletter/3qtr2006/v12n3p5.htm IHS. Mid Continent Top Plays and Trends Summer NAPE Houston, August 26, 2008 http://energy.ihs.com/NR/rdonlyres/935C6ACBF323-4B30-BB6B-EEE7A012340B/0/f12trammelmidconttrendssnape.pdf Ingram, Stephen; Rothkopf, Brian, Paterniti, Issac. Buffalo Wallow Field Study For: Oklahoma Geological Survey. http://www.ogs.ou.edu/GraniteWash/Buffalo%20Wallow%20Field.pdf Powers, Bill. The Natural Gas Crisis of 2011., Powers Energy Investor, January 6, 2010. http://www.pinnacledigest.com/blog/stargazer/natural-gas-crisis-2011 Shale Plays: Not The Only Game In Town : Meet the Granite Wash. Aug 13, 2009 http://stocks.investopedia.com/stock-analysis/2009/Shale-Plays-Not-The-Only-Game-In-Town-FST-NFX-DVN0813.aspx Shute, Toby. Forget Shale; Watch the Wash. January 14, 2010. http://www.fool.com/investing/value/2010/01/14/forget-shalewatch-the-wash.aspx Sinor, Allen. Quantec PDC Sets Worldwide Standard. Harts E&P, February 1, 2009. http://www.epmag.com/Magazine/2009/2/item28637.php Oklahoma Geological Survey Granite Wash Conference March 6, 2008 The Granite Wash: A Few Thoughts About the Big Picture, G. Randy Keller Granite Wash Overview, Bill Greiser Granite Wash Casing Profile, John Ringhisen Log Normalization and Categorization Help with Pay Identification, Chris A. Talley Improved Permeability Measurement using T2 Bin-Distribution and Bulk Volume Irreducible from NMR Tools, Ken Huggins What We Can Learn from Granite Wash Fracture Stimulation Pressure Response, Bob Shelley Buffalo Wallow Field Study, Stephen Ingram Buffalo Wallow Field: Taking the Next Step, Chris Stevenson Magnetic Resonance Data Identification of Production in Difficult Carbonate Reservoirs , Elizabeth Culp
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NEW S
January 14, 2010 Forest Oil has announced results from its third and fourth operated horizontal Texas Panhandle Granite Wash wells. In December of 2009, the third operated horizontal well produced at a 24-hour production rate of 15.1 MMcf/d, 1,200 Bbls/d of oil and condensate and 2,400 Bbls/d of natural gas liquids, for an equivalent rate of 37 MMcfe/d. In January of 2010, the fourth operated horizontal well produced at a 24-hour production rate of 16.0 MMcf/d, 1,300 Bbls/d of oil and condensate and 2,200 Bbls/d of natural gas liquids, for an equivalent rate of 37 MMcfe/d. These wells were drilled and completed with horizontal legs of approximately 4,200 feet and nine to ten stages of fracture stimulation for an average total well cost of approximately $6.8 million. January 4, 2010 Austin-based junior Jones Energy said its subsidiary, J/M Crusader Acquisition, has finished its purchase of all shares of common stock of Crusader Energy Group, a deal that was hammered out after Crusader filed for bankruptcy. The deal adds acreage in the Cleveland and Granite Wash plays in the Anadarko basin, as well as shale acreage in the Barnett, Woodford, and Bakken plays. "This transaction will further enhance our leadership position in the Texas Panhandle energy business and provide expanded opportunities in our core Cleveland and Granite Wash formations where we have significant experience, having drilled over 450 wells in this area over the past decade," Jones boss Jonny Jones said in a release. December 17, 2009 St. Mary plans to spend approximately $87 million in other exploration and development drilling activity in 2010, including operated activity in the Marcellus shale, the Granite Wash, and the Woodford shale. In the Marcellus shale in Pennsylvania, the Company plans to drill a total of four (4) wells -- two (2) in Potter County and two (2) in McKean County. Additionally, the gathering line connecting St. Marys initial test well will be turned to sales in the first quarter of 2010, with the trunk line to the second test well to be constructed immediately thereafter. In the Granite Wash program in western Oklahoma, the Company plans to drill four (4) operated wells in its Mayfield prospect and anticipates participating in a number of partner-operated wells across the play. The Company's first operated horizontal Granite Wash well in the Mayfield area, the Wester 2-34H (SM 38% WI), began drilling at the beginning of December 2009. In the Woodford Shale program, six (6) wells are budgeted to preserve expiring acreage. November 3, 2009 Forest Oil Corp., Denver, drilled and completed its second operated horizontal Granite Wash in the Greater Buffalo Wallow area of Hemphill County, Texas Panhandle. The well produced into a sales line at an initial 10.4 MMcfd of gas, 1,300 b/d of oil, and 2,000 b/d of natural gas liquids in early October 2009. Forest has 94% working interest. Forest has 93,000 net acres in the area, 2,000 of which were added since the second quarter of 2009. Forest has three operated horizontal rigs and three nonoperated horizontal rigs active in the play and expects to drill and complete two operated wells in the fourth quarter of 2009. October 29, 2009 Apache Corporation announced that the Hostetter #1-23H well located in Washita County, Okla., is producing 17 million cubic feet (MMcf) of gas and 800 barrels of liquid hydrocarbons per day. The Hostetter #1-23H is Apache's first operated horizontal well in the prolific Granite Wash play. The well was drilled to a depth of 12,500 feet with a 4,000-foot horizontal section and eight separate fracture-stimulation stages. Apache owns a 72-percent working interest in the well. "Apache controls more than 200,000 acres across the play, primarily held by production," said Rob Johnston, Apache's Central Region vice president. "The Granite Wash stacked sandstones extend more than 100 miles across western Oklahoma and the Texas Panhandle. "Apache has drilled hundreds of vertical wells across the play, and horizontal drilling technology has unlocked hundreds of additional opportunities on Apache's acreage," he said. "The high liquid hydrocarbon content makes the play especially attractive in the current environment of low natural gas prices."By year-end, the company will operate four horizontal drilling rigs in the immediate area and plans to drill more than 20 horizontal Granite Wash wells in 2010. Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. October 27, 2009 Questar Exploration and Production Company provided 2009 and 2010 natural gas and oil-equivalent production guidance and capital expenditure forecasts. Horizontal Granite Wash potential under evaluation in Oklahoma and Texas The company recently completed a horizontal Granite Wash "B" (Colony Wash) well in Washita Co, Okla. The Roxanne 2-17H went to sales on October 9 with a peak 24-hour production rate of 5.5 MMcfd and 660 bopd on a 22/64-inch choke. Questar E&P has a 56% working interest in the well. In the Texas Panhandle, the company is currently drilling its first operated horizontal Granite Wash well. The Puryear 5-28H (35% WI), located in Wheeler Co, will target the "Caldwell" Granite Wash zone with a projected measured depth of 17,200 feet. Questar E&P has over 24,000 net acres in the TX and OK Granite Wash plays. For 2010, the company anticipates operating at least one drilling rig targeting both horizontal and vertical Granite Wash development. October 21, 2009 Based on the success of the initial horizontal drilling program in the Granite Wash, Newfield added a fourth operated rig in October in its Stiles Ranch field, located in Wheeler County, Texas. In July 2009, Newfield announced that its first seven horizontal wells in Stiles Ranch had an average gross initial production rate of 22 MMcfe/d. Recent well completions have been deferred and the Company expects to have production results from 6 - 8 additional completions in early 2010. Newfield has an approximate 80% working interest in Stiles Ranch. August 10, 2009 The Colony play, in Custer and Washita counties, Okla., and the Texas Panhandle play in Hemphill and Wheeler counties, Tex., are Chesapeakes highest rate of return play due to high oil and natural gas liquids content. Pretax rates of return are 135-140% based on $7/Mcf gas and $70/bbl oil from a 4.75-5.7 bcfe horizontal well drilled and completed for $5.5-6.25 million. Chesapeake holds 60,000 net acres in Colony and 40,000 net acres in Texas Panhandle. It is the largest leaseholder, most active driller, and largest producer in Colony. In Colony, Chesapeake averages 90 MMcfe/d net or 165 MMcfe/d gross operated and plans to raise that to 105 MMcfe.d net or 190 MMcfe/d gross operated by the end of 2009 and 140 MMcfe/d net or 250 MMcfe/d gross operated by the end of 2010.The company plans to average four rigs in the second half of 2009 to drill 10 net wells and seven rigs in 2010 for 40 net wells. Three recent completions in Washita County averaged initial 30-day rates of 17.1 MMcfe/d including 1,300 b/d of oil, 16 MMcfe/d including 900 b/d of oil, and 15.4 MMcfe/d including 1,100 b/d of oil. In the Texas Panhandle play, Chesapeake
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produces 70 MMcfe/d net or 95 MMcfe/d gross operated and plans to reach 75 MMcfe/d or 100 MMcfe/d gross operated by the end of 2009 and 80 MMcfe/d net or 110 MMcfe/d gross operated by the end of 2010. The company will average two rigs in the second half of 2009 and in 2010 to drill 10 and 20 net wells, respectively. August 06, 2009 PXP is currently evaluating its exposure to the recently announced positive industry Granite Wash results in the Texas Panhandle. PXP holds leases covering 9,040 gross and about 5,650 net acres in the Stiles Ranch Field area in Wheeler County, Texas. The acreage is located within the productive trend of horizontal drilling that is targeting multiple Pennsylvanian Granite Wash/Atoka Wash reservoirs. In addition to the horizontal potential at Wheeler, PXP is also evaluating the horizontal potential of the Marvin Lake Area in Hemphill County, Texas where PXP holds approximately 14,000 gross/net acres. PXP has identified a minimum of 29 horizontal well locations targeting discrete units within the Granite Wash/Atoka Wash section. More information is being obtained and added to the interpretation both regionally and locally. It is likely that more locations will be identified as additional information is integrated and the critical criteria for economically attractive horizontal targets are better defined. July 23, 2009 Newfield Exploration Co., Houston, has built production from Pennsylvanian Granite Wash in the western Anadarko basin to 112 MMcfd of gas equivalent after starting a horizontal drilling program in late 2008. Newfield, which entered the area in 2002 with acquisition of EEX Corp., is running three operated rigs in the play and looks to run 3-5 rigs for several years. It holds 20,000 net acres in Stiles Ranch field, Wheeler County, Tex., and 15,000 net acres in western Oklahoma, and about 80% is held by production. The EEX properties were producing less than 3 MMcfd of gas equivalent, and Newfield drilled nearly 150 vertical wells in 2003-08 to more than 30 Granite Wash horizons at 12,000-15,000 ft. It transferred technology to the play from its successful horizontal program in the Arkoma basin Woodford shale play. The first seven horizontal wells averaged 22 MMcfd of gas equivalent initial output. For example, Williams 33-7H went on line this week at 21 MMcfd of gas and 570 b/d of condensate from a 3,600-ft lateral. McCoy 277H went on line in December 2008 at 25 MMcfd and 1,900 b/d from a 3,400-ft lateral and has produced nearly 4 bcf. The 2009 program calls for 14 wells. Drilling and completion costs have averaged $10 million, and the most recent well was $7.4 million. Newfield expects further improvements are expected in lengthening laterals to 3,800-4,600 ft, lower rig rates, and other efficiency gains. April 16, 2008 Enogex LLC, a subsidiary of OGE Energy Corp. (NYSE: OGE), announced it will provide natural gas gathering, processing and transportation services for Chesapeake Energy Corporation (NYSE:CHK) in the Colony Granite Wash play in Custer and Washita counties in the Anadarko Basin of western Oklahoma. To accommodate the expected production growth in the Colony Granite Wash area, Enogex is preparing to invest more than $55 million in a combination of additional gathering and transportation pipeline infrastructure and a natural gas processing plant near Clinton, Okla. The plant is expected to be in service in 2009 and will process up to 120 million cubic feet of natural gas equivalent (mmcfe) per day. Enogex is prepared for further growth to accommodate increasing Chesapeake production in the region. Chesapeake is the largest producer of natural gas, the most active driller and the largest leasehold owner in the various Granite Wash plays of the Anadarko Basin. Chesapeake is currently using 12 operated rigs to further develop approximately 200,000 net acres of Granite Wash leasehold. Chesapeake believes it owns a backlog of more than 650 net wells to drill in its various Granite Wash plays in the Anadarko Basin, including approximately 250 Colony Granite Wash wells. From the Colony Granite Wash, Chesapeake is currently producing approximately 55 gross mmcfe per day from 18 gross (12 net) operated wells. February 20, 2008 The Midcontinent division drilled 37 (29.2 net) wells during the quarter with a 100% success rate. A deep Anadarko Basin Springer completion delivered first gas sales at production rates of 12.5 (3.2 net) Mmcfe per day. Two higher interest offsets are planned, with the first to spud this month. In addition, the division has a three-rig program drilling Granite Wash wells in the Texas Panhandle and central Oklahoma. During the quarter, a vertical Granite Wash test completed for 3.1 (2.3 net) Mmcfe per day in the Texas Panhandle, delineating multiple offset locations. The northern Oklahoma oil field redevelopment play continues with two rigs actively drilling. One Wilcox test in the play is currently producing 1.1 (0.9 net) Mmcfe per day. A proprietary 3-D seismic extension to the project has commenced. One rig remains active in the Watonga/Chickasha area in Oklahoma, where a recent completion went on sales late in the fourth quarter at a rate of 3.6 (2.8 net) Mmcfe per day. For 2008, the Midcontinent division plans 123 (93 net) wells. February 2, 2007 Dallas independent Exco Resources Inc. reported it will acquire producing oil and natural gas properties, acreage, and other assets in several fields in the US Midcontinent, South Texas, and Gulf Coast areas of Oklahoma and Texas from Anadarko Petroleum Corp. for $860 million in cash. Exco has identified about 200 proved undeveloped drilling opportunities in the package, with 88% of the opportunities in the Midcontinent. The Midcontinent assets contain about 76% of the total proved reserves in the transaction. The reserves are in multiple formations, including the Big 4, Bromide, Springer, Morrow, Chester, Tonkawa, Redfork, and Granite Wash in the Midcontinent, and the Frio, Vicksburg, Miocene, Yegua, and Wilcox in South Texas. October 23, 2006 Bankers plans to stimulate and test the Granite Wash sands and the Bend shale in this well separately. The deepest Granite Wash sands tested have shown little water. These are 600 ft below the identified Bend shale test interval.
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I HS STATI STI CS
New Active Producing Wells for 2009 (3888 total active producing) Operator Field Apache Corp. Stiles Ranch Mayfield BP America Prod Northeast Mendota Northwest Bravo Natural Gas Red Deer Creek Burlington OG Co Dill City Elk City Burns Flat Chaparral Energy Chesapeake Operating Breathwaite PCX Lard Ranch Breathwaite Stiles Ranch Clinton South Mendota Northwest B&B Mayfield West Lott Ranch Mills Ranch Canadian Southwest Hemphill Buffalo Wallow Cordillera Energy Devon Energy Prod Buffalo Wallow Red Deer Creek Allison Parks Buffalo Wallow B&B Gill Ranch Mathers Ranch Mendota Northwest Forest Oil Corporatiaon Allison Parks Buffalo Wallow Lott Ranch West Park Stiles ranch PCX Granite Operating Co Buffalo Wallow Ramp Northeast
St TX OK TX TX OK OK OK Ok TX TX OK TX OK TX TX OK TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX
County Wheeler Beckham Roberts Roberts Washita Washita Washita Washita Weeeler Roberts Washita Wheeler Washita Hemphill Wheeler Beckham Wheeler Wheeler Hemphill Hemphill Hemphill Hemphill Roberts Hemphill Wheeler Wheeler Hemphill Hemphill Hemphill Hemphill Hemphill Wheeler Wheeler Wheeler Wheeler Hemphill Hemphill
Wells 3 1 2 1 3 2 1 1 1 7 3 6 2 1 2 2 1 2 1 2 1 4 1 3 1 1 2 1 2 1 9 1 1 3 1 7 3 16
Operator JMA Energy Co Jones Energy Ltd Kaiser-Francis Oil Laredo Petroleum Inc Latigo Petroleum Inc Linn Operating
Field Dill City Mendota Northwest Stiles ranch Begert Dist 10 Reydon MEG Dyco Buffalo Wallow B&B Stiles Ranch Dill City Mendota Northwest Saint Clair Canadian Southwest Hemphill Stiles Ranch Buffalo Wallow Clinton South Stiles Ranch Lard Ranch Mendota Northwest Buffalo Wallow Hemphill Mendota Northwest Allison-Britt Red Deer Creek West Park Mills ranch Mayfield West
St OK TX TX TX OK TX TX TX TX TX OK TX TX TX TX TX TX OK TX TX TX TX TX TX TX TX TX TX OK OK TX TX TX TX TX TX TX
County Washita Hemphill Wheeler Hemphill Roger Mills Hemphill Wheeler Hemphill Wheeler Wheeler Washita Roberts Roberts Hemphill Hemphill Wheeler Hemphill Washita Wheeler Roberts Hemphill Hemphill Hemphill Hemphill Wheeler Roberts Wheeler Wheeler Beckham Washita Roberts Hemphill Hemphill Hemphill Hutchinson Wheeler Hemphill
Wells 1 4 1 11 2 4 2 5 1 4 1 11 5 1 4 12 3 1 3 1 3 4 2 2 1 1 1 9 1 1 5 2 2 4 1 5 2
Marathon Oil Co Mewbourne Oil Co
Newfield Ex Mid-Con Noble Energy Penn Virginia Pogo Producing Co Range Production CO Samson Cont EE&P Samson Lone Star LLC
Chevron USA Cimarex Energy Co
Sanguine Gas Exp St. Mary Land & Exp Co Texakoma Operating Unit Petroleum Co
Breathwaite Saint Clair Hemphill Red Deer Creek Mendota Northwest Hutch Stiles Ranch Hemphill
WG Operating Zephyr Lone Star
ACTI VE FI ELDS
From IHS Production Database, January 10, 2010
Field
Allison-Britt Allison Parks B&B Begert Dist 10 Breathwaite Buffalo Wallow Burns Flat Canadian Southwest Clinton South Dill City Dyco Elk City Gill Ranch Hemphill Hutch
Producing Wells
74 36 40 12 48 993 29 33 4 30 44 98 4 528 7
Field
Lard Ranch Lott Ranch Mathers Ranch Mayfield West Mayfield Northeast MEG Mendota Northwest Mills Ranch PCX Ramp Northeast Red Deer Creek Reydon Saint Clair Stiles Ranch West Park
Producing Wells
67 4 5 40 8 20 455 30 17 21 148 4 111 503 63
http://energy.ihs.com/NR/rdonlyres/935C6ACB-F323-4B30-BB6B-EEE7A012340B/0/f12trammelmidconttrendssnape.pdf
17
OI L ANG GAS I N VESTOR AR TI CLES

Granite Wash
Oil and gas are far from ex hausted in the Tex as P anhandle, and one reservoir that is in the m idst of a reconstruction is the P ennsylvanian Granite W ash.
By Peggy Williams, October 1, 2009 Like monumental pinwheels, wind turbines have sprouted across the Texas Panhandle. The new energy economy has established a firm foothold in North Americas prime wind-resource corridor. And yet, beneath the undulant rangelands, the old energy economy quietly hums along. Oil and gas are far from exhausted in the Panhandle, and one reservoir that is in the midst of a reconstruction is the Pennsylvanian Granite Wash. Operators are applying both horizontal and vertical wells to produce reserves from this longtime target. Economic rates are achieved by multistage, slickwater fracture treatments and close attention to costs. Its a challenging venture, given the softness in natural gas prices and the vagaries of Midcontinent differentials, but its one that several companies find quite appealing.
Humongous horizontals
A leader in present-day Granite Wash drilling is Newfield Exploration Co. The Houston-based explorer lit up the industry with its recent announcement of a series of prodigious horizontal completions in the Granite Wash in Wheeler County, Texas. Newfield has been working the Granite Wash since 2002, when it obtained a property in the play in concert with its acquisition of EEX Corp. The asset was minor, consisting of some 30 Granite Wash wells making about 2.5 million cubic feet of gas a day. Gradually, Newfield added more acreage. In 2003, it kicked off a vertical drilling program in the Stiles Ranch area in Wheeler County, where the Wash sediments reach 3,000 feet in thickness. This is in the slightly overpressured, deeper part of the trendthe reservoir occurs below 12,000 feet and the pressure gradient is some 0.5 psi per foot. The company recognizes up to 15 primary intervals across its 35,000-net-acre position. Following the common practices of the time, Newfield initially confined its efforts to the top 500 to 1,000 feet of the sequence. In short order, however, it was drilling deep into the section and completing more intervals. Up to mid-2008, Newfield drilled more than 150 vertical wells and increased production in the Stiles Ranch area from 2.5- to 90 million cubic feet net per day. The verticals typically recovered 2.5- to 3.5 billion cubic feet equivalent (Bcfe) apiece and were completed in seven to eight zones. Nonetheless, the company was intrigued with the impressive gas-in-place potential of the Granite Wash, and determined to find a way to up its recovery factor. In 2005, it drilled a Granite Wash lateral in Buffalo Wallow, a shallower and less-pressured field northwest of Stiles Ranch. Our results were moderate, at best, says George Dunn, Tulsa-based vice president of Newfields Midcontinent division. The well produced a lot of water. Newfield also joined in several nonoperated wells located between Buffalo Wallow and Stiles Ranch. There were mechanical problems in the laterals, but the production response was promising, says Dunn. The company reinitiated detailed geologic mapping, and dug deep into the data. By late 2008, it was ready to test horizontal drilling in its prime Stiles Ranch asset. The #27-7H McCoy was a runaway success: it came on production in December 2008 at an initial rate of 25 million cubic feet of gas and 1,900 barrels of condensate per day. It averaged 27.1 million equivalent a day for its first 60 days on production, and produced more than 4 Bcfe in the first nine months. It was just the beginning. To date, Newfield has drilled seven horizontal wells into three different intervals, and posted spectacular results. Of its initial tranche, five wells were gauged at more than 20 million cubic feet per day, and the smallest well made 8 million cubic feet and 180 barrels of condensate per day. So far, our production rates have been high and fairly consistent, he says. Given the tremendously thick section of stacked intervals that occurs in the Granite Wash at Stiles Ranch, selecting a horizontal target is not simple. The difficult part is to bore in on how productive each zone is, he says. We use vertical production data, production logs and petrophysical analyses to determine the zones with the highest productivity. Were targeting intervals that can deliver high production rates. Newfields results have been so appealing that it has shifted its 2009 program entirely to horizontal wells. The company recently added a third rig to the two already engaged, and plans to be at four by year-end. For the next few years it expects to keep between three and five rigs busy in the Wash. Well do a combination of developing zones that are economic and assessing the other zones, says Dunn. We are looking at different intervals to get a feel for productivity across our entire acreage spread. At present, the operator drills its Stiles Ranch wells to true vertical depths (TVDs) between 12,200 and 14,200 feet, depending on the target zone, and takes its laterals sideways 4,000 feet and more. It cements in liners and completes the laterals in seven to eight slickwater frac stages. The high flow rates are combining with sinking well costs to improve metrics. From initial well costs of around $10 million each, Newfield engineers have dropped costs to less than $8 million. Its most recent well, the #33-7H Williams, was completed for 21 million cubic feet of gas and 570 barrels of condensate per day at a cost of $7.4 million. While its quite early to toss about EURs for horizontal Granite Wash wells, Newfield thinks its first batch will range from 6 to 10 Bcfe each. Currently, within our footprint we see potential of 400 to 600 Bcf, says Dunn. Depending on how many intervals ultimately test out, theres room to go above that figure. Interval quality appears to be directly related to thickness, superior reservoir properties and presence of natural fractures. A number of intervals are economic to develop at todays forward strip prices, and some intervals might be best described as gas-price plays, he says. Right now, the Granite Wash is our third-largest asset and were hoping to grow that significantly as we prove up more of the interval. Were in the early stages of assessing the ultimate potential, but it looks really good.
Thicket of opportunity
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An operator in the thick of the Granite Wash is Forest Oil Corp. The Denver-based independent entered the play in 2005. We were attracted to the play because the Granite Wash had a known producing history, says J.C. Ridens, executive vice president and chief operating officer. We love tight-gas sands, and it was a chance for us to get a good position in the Texas Panhandle. Forests initial efforts post-acquisition were directed at improving techniques for vertical wells. The company used frac mapping and extensive production-logging techniques to hone its stimulations. It also gathered data to support a horizontal program. The operator was drilling horizontal Cotton Valley wells in East Texas, and the two plays shared similarities. At the same time, we were doing bolt-on leasing and taking farmouts in the Panhandle, says Ridens. The company anticipated horizontal development in the Wash. In new sections, it switched to drilling vertical wells in the corners and leaving interiors available for laterals. The corner wells gave us data on the thickness of zones, and we did production logging, says Ridens. That was our transition to horizontal wells. Forest also participated in eight nonoperated horizontal wells that posted average initial rates of 8 million equivalent per day. The horizontals are in the best portion of the reservoir, and the frac is concentrated, he says. We contact good-quality reservoir rock very effectively and limit contact with rock we want to avoid. Earlier this year, Forests first operated horizontal well tested 17 million equivalent per day. A third of that came in the form of associated liquids, condensates and NGLs, says Ridens. The #5-7H Zybach, in Wheeler County, was fractured in eight stages in a 3,600-foot lateral. The well exceeded our expectations. We ran our economics on the medium case, 6.5 Bcfe, and the well is performing on the high side. Now, the company exclusively drills horizontals in the play. Its targets are the liquids-rich zones in the upper Granite Wash; it is saving the deeper, dry-gas zones for the future. At $3 Nymex gas and $55 crude, Forest can still make an attractive rate of return in the Granite Wash. The liquids component really makes this work for us, he says. The NGLs sell at 40% to 50% of Nymex crude, and that juices the economics. This year, Forest is keeping a company-owned rig busy, staffed with company employees. It is forecasting drilling and completion costs of $5.5 million, for TVDs of 13,000 feet and measured depths of approximately 17,000 feet. Its relatively uncomplicated drilling, and drilling conditions are not difficult, he says. In the first quarter of 2009, Forest produced 91 million net a day from the Buffalo Wallow area. Last year, it purchased Cordillera Energy Partners II, which further pumped up its Granite Wash position. It currently holds 120,000 gross acres in the Texas portion of the Panhandle, and some acreage in Oklahoma operated by others. Were in the budget-preparation cycle, but given the results weve seen to date we may step up activity in 2010 compared to 2009, says Ridens. This play is one of the top economic performers in the company. And, Forest is looking hard into more technical advances. The opportunity to stack laterals off the same pad or even stack laterals out of a single wellbore could reduce costs further. This is an area where we can run multiple rigs for multiple years and hammer the efficiencies. Horizontal Granite Wash drilling also extends into Oklahoma, and one firm enjoying excellent results there is Radnor, Pennsylvania-based Penn Virginia Corp. The firm bought into the Granite Wash in Washita County, Oklahoma, via a 2006 acquisition. The seller had drilled a handful of vertical wells, and after we drilled a few verticals we concluded the play was marginal, says Baird Whitehead, executive vice president and chief operating officer, and president of Penn Virginias oil and gas unit. However, Chesapeake Energy was working its Colony West project to the west of Penn Virginias holdings. The Oklahoma City operator bought into some of the same acreage held by Penn Virginia. Chesapeake proposed several horizontal wells. We got our feet wet and realized the results of the horizontal wells were much better, says Whitehead. From that point on, the two companies have partnered in an area of mutual interest (AMI) to develop the Granite Wash via horizontal wells. Penn Virginia operates approximately a third of the AMI and Chesapeake operates the remainder; Penn Virginia holds about a 40% interest across the project. Results have been compelling. On the initial 23 wells, the average rate for the first 30 days of production is 8.2 million cubic feet equivalent per day, and the average EUR is 6.2 Bcfe. And the reservoir is loaded with liquids: 40% of the production is crude oil, and the gas is 1,200 Btu. These wells will make at least 90 barrels per million, says Whitehead. Some of the better wells make more than 1,000 barrels of oil per day at the wellhead, not including the processed NGLs we get from the high-Btu gas. That makes the economics very strong. Finding costs are $1.43 per thousand cubic feet, and the after-tax rate of return is close to 70%. Its pretty difficult to find such economic opportunities in todays market. In Washita County, some 70 miles from the activity in the Panhandles Stiles Ranch area, the Granite Wash generally presents just one interval for drilling. The Granite Wash B is the target, reaching up to 50 feet thick. Occasionally, the C zone can be developed as well. The TVDs for the Washita County wells are 11,500 to 12,000 feet; laterals generally stretch 3,500 to 4,000 feet. The reservoir is overpressured, between 0.6 and 0.65 psi per foot, so mud weights push 12 pounds per gallon in the lateral. The partners set 7-inch casing on top of the Granite Wash and cement liners in the lateral. Four to five stages are treated with slickwater jobs. We dont need as many stages as in a shale reservoir, because the Wash has some porosity and permeability, says Whitehead. That helps keep our costs down. Per-well prices are $6.25 million at present. As in other parts of the Patch, the combination of falling service costs and increased efficiencies has slashed costs almost 20%: last year, the Washita County wells ran $7.7 million each. To date, Penn Virginia has participated in 23 gross wells, and its net production from the play is 25 million equivalent per day. The Granite Wash now accounts for a majority of its Midcontinent production. In 2009, the company will drill six net wells in its venture with Chesapeake. Currently, the partners have one Chesapeakeoperated rig at work on the AMI acreage, which has room for more than 90 additional horizontal wells. Penn Virginia is also expanding its position outside of Washita County, acquiring acreage on internally generated prospects.
Sooner side
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The Granite Wash is one of our three core plays, says Whitehead. The rate of return is so high, we will spend as much money as we can in the Granite Wash, both in our Chesapeake venture and for our own account. We dont see a lot of risk.
Vertical player
The Granite Wash has been a friendly locale for three cycles of privately-held, Denver-based Cordillera Energy Partners. The companys staff has rich experience in the Wash: through the end of 2008, Cordillera entities had drilled 84 vertical and four horizontal wells in the play. (The first two Cordilleras were sold, one to Patina Oil & Gas Corp. in mid-2003 and the other to Forest Oil Corp. in mid-2008.) The current Cordillera III has again dug deep into the Texas Panhandles Wash reservoirs. Cordillera III has accumulated about 80,000 net (more than 100,000 gross) acres of leases, mainly in the portions of the play basinward from Buffalo Wallow, Hemphill and Mendota fields in Hemphill County. Here, the Granite Wash is some 1,500 feet thick, very fine-grained and underpressured. Cordillera estimates the resource potential to be on the order of 42 to 49 Bcfe of recoverable gas per section. This year, it plans 18 to 22 vertical wells on its acreage. We have one rig running now and we feel confident we can raise that to two rigs next year, assuming no further deterioration in gas prices, says Kamil Tazi, vice president, engineering and planning. To date, Cordillera has developed its Granite Wash position with vertical wells. The company has an inventory of more than 950 Granite Wash locations, primarily on 20-acre spacing. We think verticals are the most efficient way to develop our particular area of the Granite Wash, says Tazi. Cordilleras Hemphill County wells average 1.3 Bcfe at an initial rate of 2.5 million a day and are solidly economic. Right now, using the strip price deck, we are getting 27% rate of return and our finding cost is $1.23 per thousand cubic feet. The strong economics are the result of better and cheaper wells. In the program we started last year, we have improved our average initial rate by 100% and our EURs by more than 20%, says Ed LoCricchio, senior geologist. A contributing factor is the companys use of velocity strings. We found that velocity strings allow us to evacuate water from the wellbore and improve gas production, says LoCricchio. The higher rates are sustained longer, and that translates into better EURs. At the same time, the company has pushed well costs down in the range of $1.5- to $1.6 million apiece, for a 13,300-foot hole with four to five fracs. The plunge in price has been swift and dramatic: in July 2008, when Cordillera was running seven rigs in the play, a vertical Granite Wash well cost $2.5 million. Drilling costs were shrunk through a number of efficiencies and renegotiations with vendors, and the use of better rigs and better bit programs. The lower well costs are key to what has allowed us to continue to drill and complete the vertical Granite Wash wells, says Tazi. An essential consideration for Cordillera is its interest in building proved reserves. The company looks at capital efficiency the dollars in the ground that are required to develop proved reserves. Under present SEC rules, a vertical well proves up eight offset locations, but a horizontal well proves up just two parallel offsets. That means a $1.6-million vertical well proves up 11.7 Bcfe, at a cost of about $0.14 per Mcfe. By comparison, one $7.5-million horizontal well proves up about 16.5 Bcfe, at a cost of $0.45 per Mcfe. Vertical drilling is a very efficient way to prove up reserves, says Tazi. But we fully understand why other operators take the horizontal approach. The high rates of return from the high-rate horizontal completions are quite attractive for different reasons. Certainly, Cordillera will continue its vertical development program in Hemphill County and use horizontals where appropriate on its other leasehold positions. It constantly evaluates the metrics of the play, and will add in horizontals if those completions can meet its internal geologic and economic criteria. This has been a great play for us, and with the added success of the horizontals it is getting better.
MLP attraction
As an upstream MLP, Houston-based Linn Energy LLC has a different business model than the straight E&P companies, says Mark Ellis, president and chief operating officer. Linn focuses on acquiring mature assets and optimizing those assets through sound engineering and geologic development. We do not do exploration, he says. We invest in stable, mature assets and we use commodity hedging to reduce price volatility. Prime targets are plays that deliver predictable cash-flow streams, and thats what Linn was after when it entered the Granite Wash in mid-2007. It acquired 38,000 net acres in the trend as part of a $2.05-billion purchase of Midcontinent assets. The fit was good for Linn. It and its predecessors have drilled 368 vertical Granite Wash wells, on 70,000 gross acres spread across an area 70 miles long and 25 miles wide, from Lard Ranch in Roberts County to Stiles Ranch in Wheeler County. It is a sizeable position in a very good neighborhood. Weve continued development with vertical wells, and results have been very repeatable in areas of the trend, says Ellis. Generally, its vertical Wash wells are completed in up to eight intervals and recover 1.5 to 2 Bcfe each. Initial rates are 1.5- to 3 million a day. Last year, Linn drilled almost 100 Granite Wash wells and had five operated and five nonoperated rigs running across the play. Currently, its daily net Granite Wash production is approximately 50 million equivalent, almost a quarter of its total volume. Linns Granite Wash properties hold 900 vertical locations, and the company counts some 710 Bcfe of PUDs and nonproven inventory, about 40% of its company-wide total. Its a key play for us, and the results other operators are reporting have certainly raised the value of that inventory. This year, Linn has considerably scaled back drilling to preserve capital, spend within cash flow, and focus activity on the most attractive returns. It ran two rigs in the Wash during the first half of the year and has now scaled back to one. We are in drilland-suspend mode, says Ellis. We have suspended all Granite Wash completions until gas prices recover. Linn is considering horizontal drilling in 2010. There is horizontal activity all around us, and we are very encouraged by that, he says. Indeed, its position includes about 13,500 net acres in red-hot Stiles Ranch, which could support some 40 horizontal spacing units, and multiple wells in each unit. Our biggest challenge is to find the best way to extract the most value possible from this play for our unit holders. The company would like to see some price improvement before it jumps into horizontal Granite Wash drilling. The horizontal wells produce a significant portion of their reserves in their first 18 months, and we want to preserve this potential for a higher
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commodity-price environment. Its a tremendous play, but with substantially all of our acreage held by production, it makes sense to wait.
Engendered by the Wash
Finally, one young private firm is pursuing the Granite Wash. Its principals are intimately familiar with the reservoir, as they played pivotal roles in introducing it to horizontal drilling. Brandon Hussing is vice president of geoscience and managing partner in Great Plains Operating LLC, a Grapevine, Texasbased independent. Great Plains was formed in October 2007 with funding from Kayne Anderson Capital Advisors, and has since been steadily picking up Panhandle acreage. Currently, it holds some 17,000 gross acres in the horizontal Granite Wash and Cleveland plays. Great Plains has focused on Roberts and Hemphill counties for the Granite Wash. Weve got a large acreage block in and amongst some vertical Granite Wash wells within various fields, says Hussing. But wed like to see some natural gas price improvement before we drill. The good news is we have fairly long term on our leases, so we can afford to wait. Hussing was a limited partner and exploration manager in Grayhawk Energy Inc., which was acquired by Chesapeake Energy in 2007. Grayhawk, funded by Natural Gas Partners, was the first company to attempt and successfully drill horizontal wells in the Granite Wash. We are working toward emulating Grayhawks success by our own efforts in horizontal drilling in the Atoka and Cherokee Granite Wash, says Hussing. Great Plains is also looking at horizontal-drilling possibilities in the Morrow and other Pennsylvanian-age plays, and is already participating in Cleveland wells. The Grayhawk group was headed by Cory Richards, president, Randy Hill, chief executive officer, and David Myers, executive vice president. The trio had led a team at a prior entity, Cortez Oil & Gas Inc., which drilled horizontal Red River wells on the Cedar Creek Anticline in the Williston Basin, and horizontal Barnett shale wells in North Texas. After Cortez was sold to Encore Operating in early 2004, the group looked for a new play where it could leverage its technical experience in horizontal drilling. The Granite Wash was the ticket. We had been watching the Granite Wash vertical play explode, mostly by virtue of the application of the high-volume, highrate slickwater frac, says Richards. The company sought an area with just one package of Granite Wash, and where the target was fairly shallow, and where the zone had lateral continuity. Grayhawk acquired a six-section acreage block in the Lard Ranch area in Roberts County, at the far western edge of the Granite Wash play. Three 1980s-vintage vertical wells close to the property had cumulative production between 300- and 600 million cubic feet of gas, and were still making minimal volumes. The Lard Ranch C zone is part of the Atoka series and lies just above the Novi Lime and Atoka shale at a depth of about 8,500 feet. The 90-foot-thick C target consists of multiple, porous clean Granite Wash lenses interbedded with tighter siltstones and shales, typical of the Granite Wash throughout the Anadarko Basin. We suspected that, at least in our area, horizontal drilling would work, says Richards. Grayhawk sunk its first horizontal Granite Wash well in early 2005, and the first stage came in at more than a million cubic feet a day. After all the stages were completed, the well flowed more than 2 million a day. It was tough getting the well through the curve, because to our knowledge no one had drilled through the shales above the Granite Wash at low to moderate angles before, says Hussing. The drill string was stuck numerous times. The company increased its asphalt-blend oil concentration to 10% to slick up the hole, got the well through the curve and drilled the remaining lateral. The horizontal completion was strongit took just a year to make the same volume of gas that the verticals took two decades to produce. Eventually it produced 975 million cubic feet of gas and 18,000 barrels of oil. Once Grayhawk had established the productivity of the Wash, it concentrated on reducing costs. It experimented with mud and casing programs to figure out the most effective strategy. Indeed, Grayhawk was able to drive its drilling and completion costs from $3.4 million to approximately $2.3 million per well, for an 8,000-foot TVD hole with a cemented liner in a 2,100-foot stimulated lateral. And it accomplished that in a time of rising service and supply prices. During the next two and a half years, Grayhawk drilled 13 Granite Wash horizontals in Roberts County, plus three verticals in the Atoka and Cherokee washes in Hemphill and Roberts counties. When it sold, Grayhawk was producing 14 million a day gross. Its success inspired other operators to move horizontally in the Granite Wash. And, the Wash success propelled the former Grayhawk crew into their own ventures. Three companies were founded by exGrayhawk people: Hussing, Todd Laney and Jimmy Smith set up Great Plains; Myers and Randy Click launched Cisco Energy to pursue acquisitions; and Richards and partner Rick Stevens started Plano Petroleum LLC. Plano, based in Plano, has equity backing from Kayne Anderson. The firm focuses on horizontal Tonkawa and other Pennsylvanian plays in the Midcontinent. Were doing the same thing we did at Grayhawk. Weve selected the Tonkawa sand to try to leverage our technical experience into, says Richards. Each of the Grayhawk progeny has secured equity funding, and former partners remain very good friends. As a management team, were proud that we have helped people who were with us go out and set up their own ventures, he says. We continue to network and help each other out whenever we can. Certainly, there is continued opportunity in the Granite Wash and in other Pennsylvanian sands throughout the Midcontinent. Its a matter of timing the execution of the plays and the economics with the market, says Richards. That can be challenging, but also very rewarding. The Grayhawk story, and the stories of Newfield, Forest, Penn Virginia, Cordillera and Linn, each illustrate the broad reach and beneficent impact of the Granite Wash.
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Midstream Eyes Turning to Granite Wash By Frank Nieto, December 18, 2009 If there is one thing you can count on in the midstream, it is the search for the next hot play. The Barnett gave way to the Haynesville, which is giving way to the Marcellus. But before that play is even built up, were now hearing the rumbles of the next play: the Granite/Colony Wash. No less a source than Chesapeake Energy Corp.s Aubrey McClendon recently called the play, located in the Texas Panhandle, one of the core drivers of the companys growth outside of its Big 4 shale plays: the Barnett, Haynesville, Fayetteville and Marcellus. It was only natural then that Chesapeake Midstream Partners, the companys midstream spin-off that is 50% backed by Global Infrastructure Partners would target the region for build-up. Our core mission is to connect and provide a high level of service to Chesapeake production gas. The Granite Wash is a great place to be right now in this gas price environment because it has a nice natural gas liquids (NGLs)/oil component, Bob Purgason, Chesapeake Midstream Partners COO, told Gas Processors Report. The newly formed company has two core areas it is focused on: the Mid-Continent, which includes the Granite Wash, and the Permian basin with the Barnett shale. The Granite Wash runs from the Texas Panhandle into Western Oklahoma and is a combination of new and old technology: it has characteristics of some of the shale plays, but also benefits from vertical drilling due to the technological advancements that shale plays helped create. Its a unique animal. Its not a shale, its distinct, Purgason said. It is a very tight formation and you have to hit it with heavy fracture stimulation like a shale play. Its IPs (initial production rates) are making it more attractive than a lot of shale plays right now, Dave Presley, president and CEO of Frontier Energy Services, told Gas Processors Report. For full article go to http://www.oilandgasinvestor.com/ Granite Wash Play Delivers Economic Wells
The Granite Wash play in the Texas Panhandle is an unconventional play that has revitalized an old area.
By Peggy Williams, August 18, 2009 The Granite Wash is a tight-sand gas reservoir that occurs in thick, stacked sequences of sands, siltstones and shales. The sediments are submarine fan lobes sourced from distant highlands. The lobes are piled on each other, to thicknesses of 3,500 feet in areas. Today, operators are drilling both horizontal and vertical wells in the Wash sediments, which are Pennsylvanian in age in this play. Economics of the wells are attractive even at todays low gas prices. Vertical players have refined completions and shaved well costs to yield solid rates of return and add proved and probable reserves. Horizontal players are drilling some stunning high-rate wells that flow gas in excess of 20 million cubic feet per day. Economically, these wells compete head-to-head with those in the big shale plays. Several additional factors contribute to the popularity of the Granite Wash, which is prospective from the Texas Panhandle into western Oklahoma. Its gas is rich, pipelines are spread across the trend, and the regulatory environments are favorable. Also, there are few topography problems in this part of the patch. To read more blogs by Peggy Williams, please visit: http://blogs.oilandgasinvestor.com/peggy/ Mid Continent Wash Plays: Chesapeake Updates OK, TX Granite Wash Plays By Stephen Payne, July 31, 2009 Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) reports its second quarter results from the Anadarko Basin Granite Wash assets in western Oklahoma and Texas Panhandle. In Oklahoma, the Balzar 2-7H in Washita County, Oklahoma commenced production on June 11 and achieved a peak rate of 23.6 million cubic feet of gas equivalent per day (including 1,800 barrels per day of oil) and a first 30-day average rate of 17.1 million cubic feet equivalent per day (including 1,300 barrels per day of oil). The Miller 1-21H in Washita County commenced production on June 27 with a peak rate of 22.7 million cubic feet equivalent per day (including 1,500 barrels of oil per day) and a first 30-day average rate of 16 million cubic feet equivalent per day (including 900 barrels per day). The Martin 1-16H in Washita County commenced production on May 30 with a peak rate of 19.7 million cubic feet equivalent per day (including 1,400 barrels per day) and a first 30-day average rate of 15.4 million cubic feet equivalent per day (including 1,100 barrels per day). For full article go to http://www.oilandgasinvestor.com/ Forest To Buy Solichs Granite Wash, E.TX Package For $892MM In Cash, Stock By John A. Sullivan, August 18, 2008 Forest Oil Corp., Denver, (NYSE: FST) plans to acquire producing assets in the Buffalo Wallow and East Texas/North Louisiana areas from George Solichs Denver-based Cordillera Energy Partners Cordillera Texas LP for approximately $708 million in cash and 3.5 million shares of stock for a total deal value of approximately $892 million. The assets include approximately 118,000 gross acres (85,000 net). Total estimated proved reserves are 350 billion cubic feet equivalent (36% proved developed) with additional net unrisked potential of 1.2 trillion equivalent. The properties produced an average of approximately 34 million cubic feet equivalent per day in first-half 2008. Upside includes approximately 1,500 additional vertical and horizontal drilling locations (1,194 unbooked). The Granite Wash properties comprise 67,700 gross acres (54,000 net). Estimated proved reserves are 206 billion cubic feet equivalent. Production is focused primarily in the Granite Wash, Atoka and Morrow intervals. The East Texas/North Louisiana properties comprise 50,300 gross acres (31,000 net). Estimated proved reserves are 142 billion equivalent. Production is from the Cotton Valley and Travis Peak intervals and includes rights to the James lime, Haynesville/Bossier shales and Pettet formations. For full article go to http://www.oilandgasinvestor.com/
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CORDILLERA, THE SEQUEL
Movie buffs hold dear the precept that the first movie in a series is usually the best. That's not always the case; for example, the second in The Godfather trilogy is regarded by many as ...
By Peggy Williams, October 3, 2007 Cordillera's piece of the Granite Wash has all the hallmarks of a classic resource play, says Jeff Simmons, engineering manager. "It covers a sizeable area, has low dry-hole risk, and is scalable. Activity can be ramped up or down, depending on economic conditions." As worthy a performer as it may be, the Granite Wash hasn't received the acclaim lavished on more well-known resource plays in the Piceance and Fort Worth basins. Nonetheless, its size is staggering. Cordillera has calculated that Hemphill and Roberts counties alone contain between 30- and 40 trillion cubic feet of recoverable reserves, much of which is still entrained in the thick, tight wash sequence. The Granite Wash reservoirs that Cordillera targets are anomalously underpressured, notes Ed LoCricchio, senior geologist. "Traditional Morrow targets in this part of the basin are overpressured, so shows in the Granite Wash were commonly suppressed and the Granite Wash reservoirs were damaged during drilling of these deeper tests." For full article go to http://www.oilandgasinvestor.com/ THE GRANITE WASH
The Texas Panhandle is rocking and rolling. The tight-sand Granite Wash play has expanded to cover hundreds of square miles, and is enjoying a surge of drilling thanks to record natural gas prices, improved completion ...
By Peggy Williams, November 4, 2005. For full article go to http://www.oilandgasinvestor.com/ PANHANDLE PIZZAZZ
In early September, 48 rigs were working in Texas Railroad Commission District 10, which comprises the 26 counties in the Texas Panhandle. The district has weathered wild cycles of industry activity, and it has been ...
By Peggy Williams, October 29, 2004 In early September, 48 rigs were working in Texas Railroad Commission District 10, which comprises the 26 counties in the Texas Panhandle. The district has weathered wild cycles of industry activity, and it has been years since so many derricks graced its rolling hills and windswept expanses. Activity is particularly brisk in the Granite Wash, where infill-drilling programs are in full swing in several fields. This tight-gas reservoir consists of wedges of clastic sediments that were shed from the Amarillo Uplift. The Granite Wash is essentially a thick series of stacked, fluvio-deltaic fans. In the Panhandle, the productive trend of the Granite Wash covers an area some 50 miles long by 25 miles wide in Hemphill and Wheeler counties. The play was kicked off several years ago by Bravo Natural Resources Inc., a private Tulsa firm. The company started recompleting deep Morrow wells that had been drilled decades ago in Buffalo Wallow Field, a multipay accumulation in Hemphill County, some eight miles south of Canadian, Texas. As commodity prices rose, coupled with more efficient drilling and improved completion techniques, the Granite Wash became an attractive, low-risk target that could support grassroots wells. Bravo started the play, and Patina Oil & Gas really got it rolling. Denver-based Patina saw opportunity in Bravo's work, and in December 2002, it moved into the western Anadarko Basin with its purchase of the company. (Bravo's management restarted in the Panhandle and recently sold the assets of the restart to Oklahoma City-based Midcontinent consolidator Chesapeake Energy Corp. More on this later.) Patina concentrated on improving the completion techniques in the Granite Wash, and its results have been striking: it has been able to significantly enhance the wells, raising initial production rates by around 30%. For full article go to http://www.oilandgasinvestor.com/
HAR Ts A& D
Trans. Type E&P
For more detailed information see Harts A&D site at: http://www.a-dcenter.com/
Est. Value ($MM) USD 800
Buyer/Surviving Entity SandRidge Energy Inc.
Seller/Acquired or Merged Entity Forest Oil Corp.
Announce Date 2009.12.01
Close Date 2009.12.21
E&P
Comments: Bought 90,000 acres in TX, NM Pernian Basin, gaining 90 MMBOE proved, 7,600 BOE/d USD Talon Oil & Gas LLC Denbury Resources Inc. 2009.05.13 2009.07.06 259.8 Comments: Bought 60% interest in 19,457 net acres in Parker, Wise, Tarrant & Johnson cos. in TX Barnett shale, gaining 45.7 MMcfe/d. USD 873 Forest Oil Corp. Cordillera Energy Partners 2008.08.18 2008.10.01 Comments: Acquired assets in Buffalo Wallow, E. TX/N. LA, gaining 350 Bcfe proved, 34 MMcfe/d. USD 36 Undisclosed Brigham Exploration Co. 2008.03.01 2007.09.01 Comments: Purchased Anadarko Basin Granite Wash assets, gaining 23.5 Bcfe proved, 1.8 MMcfe/d net.
E&P
E&P
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OI L AND GAS I N VESTOR EXP LOR ATI ON HI GHLI GHTS
Apache Corp. - 01/01/10 Apache Corp.s #1-23H Hostetter in Section 23-11n-19w, northwestern Washita County, Okla., is producing 17 million cu. ft. of gas with 800 bbl. of condensate daily from an eight-stage acidized and fracturestimulation south lateral in Granite Wash at 12,976-16,430 ft. Additional completion details are not available. Apache holds a 72% working interest in the new well and controls more than 200,000 acres across the play, primarily held by production. The company has plans to operate four horizontal drilling rigs in the immediate area by yearend and plans to drill more than 20 horizontal Granite Wash wells in 2010.
Chesapeake Operating Inc. - 12/01/09 In Wheeler County (RRC Dist. 10), Texas, Chesapeake Operating Inc. of Oklahoma City reported two horizontal Des Moines Granite Wash well completions in Stiles Ranch Field. The #11H Stiles Ranch 23, Section 23, Block A-3, H&GN Survey, A-206, was tested on a 12/64-in. choke and initially flowed 2.15 million cu. ft. of gas, 131 bbl. of 55-gravity condensate and 23 bbl. of water per day. Production from the 16,586-ft. well comes from fracture-stimulated perforations in Des Moines between 12,700 and 16,953 ft. in a north lateral drilled to 17,141 ft. Chesapeake reported respective shut-in and flowing casing pressures of 3,198 psi and 3,045 psi, and a calculated absolute open flow of 23.1 million cu. ft. of gas daily. A second well, #6H Reed 70, Section 70, Block A-7, H&GN Survey, A-8395 flowed 2.91 million cu. ft. of gas with 141 bbl. of 54-gravity condensate and 489 bbl. of water per day from a fractured horizontal interval at 12,913-16,400 ft. during initial testing. Using a 19/64-in. choke, respective shut-in and flowing casing pressures were 2,179 psi and 1,772 psi. The absolute open flow was calculated at 8.6 million cu. ft. of gas. Newfield Exploration Co. - 10/01/09 Newfield Exploration Co. of Houston has reported an average 22-million-cu.-ft.-perday initial production rate for seven recent high-volume horizontal completions in the Anadarko Basin in Wheeler County, Texas. In Section 4, Camp CSL Survey, A-24, #7H McCoy 27 flowed 25 million cu. ft. of gas and 1,900 bbl. of condensate daily from a 3,400-ft. Des Moines Granite Wash lateral. The #8H McCoy 27 produced 21 million cu. ft. of gas with 1,230 bbl. of condensate per day in March 2009, and to date has recovered 1.25 billion cu. ft. equivalent from a 3,600-ft. lateral in the Granite Wash. The #27-10H McCoy flowed 12 million cu. ft. of gas and 280 bbl. of condensate from a 2,900-ft. horizontal section. In Section 5, Block 5, B&B Survey, A-4, #5H Thomas 5 is an offset lateral to #7H McCoy 27 and initially flowed 20 million cu. ft. per day. In Section 33, Block RE, Roberts & Eddleman Survey, #7H Williams 33 produced 21 million cu. ft. of gas and 570 bbl. of condensate per day. In April 2009, #3H Britt D4 in Section 4, Block 1, B&B Survey, A-8630, flowed 21 million cu. ft. of gas daily from a 3,900-ft. lateral. Finally, #13H Britt Ranch I4, Section 4, Block 2, B&B Survey, A-8275, flowed 8 million cu. ft. of gas with 180 bbl. of condensate per day on completion in a 2,900-ft. Des Moines leg. Newfield plans 14 additional horizontal Granite Wash wells in 2009. Blue Dolphin Production LLC - 09/01/09 A 12,205-ft. western Anadarko Basin exploratory test by Edmond, Okla.-based Blue Dolphin Production LLC is producing from Arbuckle. The #1 Thomas was drilled in Section 62, Block A-6, H&GN Survey, A-1017, northeastern Gray County (RRC Dist. 10), Texas. The producer flowed 1.45 million cu. ft. of gas, 24 bbl. of 58-gravity condensate, and 720 bbl. of water daily from five acidized and fracture-treated intervals (83 net perforated ft.) between 11,725 and 11,943 ft. With shut-in tubing pressure of 3,213 psi and flowing tubing pressure of 662 psi on a 32/64-in. choke, absolute openflow was calculated at 1.47 million cu. ft. of gas per day. Log tops include Douglas Granite Wash at 6,795 ft.; Des Moines Granite Wash, 7,487 ft.; Viola, 10,712 ft.; Simpson sand, 11,096 ft.; and Ellenburger at 11,444 ft. Penn Virginia Oil & Gas Corp. - 08/01/09 A horizontal well by Penn Virginia Corp., Radnor, Pa., initially flowed 6.33 million cu. ft. of gas, 733 bbl. of 53-gravity condensate and 1,350 bbl. of oil per day. The #2-4H Boatsman is in Section 4-11n-16w, northern Washita County, Okla., and was tested on a 32/64-in. choke. Production is from four fracture-stimulated intervals in Des Moines Granite Wash at 12,140-12,707 ft., 13,49514,059 ft., 14,848-15,425 ft. and 15,524-16,178 ft. The new producer was drilled to 16,240 ft., 11,827 true vertical, and shut-in and flowing tubing pressures were measured at 4,850 psi and 2,160 psi, respectively. Penn Virginia is active at a nearby horizontal Des Moines project.
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Chesapeake Operating Inc. - 08/01/09 A Chesapeake Operating Inc. development well in Washita County, Okla., initially flowed 4.07 million cu. ft. of gas, 148 bbl. of 52gravity condensate and 9 bbl. of water per day in its Colony Wash project near the town of Clinton, Okla. The well is in Section 18-11n-16w. The #2-18H Kliewer produces through fracture-stimulated perforations at 12,470-16,946 ft. in Des Moines Granite Wash. The horizontal was drilled northward to 17,050 ft. (12,214 ft. true vertical). Chesapeake reported shut-in pressure of 4,501 psi and flowing casing pressure of 2,857 psi on an 11/64-in. choke. Chesapeakes headquarters are in Oklahoma City. St. Mary Land & Exploration Co. - 08/01/09 Near Burns Flat, Okla., St. Mary Land & Exploration Co. of Denver has completed a horizontal test in the western Oklahoma salient of the Anadarko Basin. The #7-35 West flowed 5.3 million cu. ft. of gas, 484 bbl. of condensate and 180 bbl. of water daily, and was tested on a 24/64-in. choke with 2,400 psi flowing tubing pressure. It was perforated and fracture-stimulated in 10 stages in Des Moines Granite Wash at 13,147-17,050 ft. The total depth is 17,175 ft. (true vertical depth 12,573 ft.) and the bottomhole location is in the southern part of the same section, Section 35-11n-18w, Washita County. Unit Petroleum Co - 06/01/09 Unit Petroleum Co. of Tulsa has completed two Mendota Northwest Field producers in the Anadarko Basin in Roberts County (RRC Dist. 10), Texas. The #11 J.C. Vollmert, Section 2, BS&F Survey, A-931, was tested on a 12/64-in. choke and initially flowed 106 bbl. of oil, 1.1 million cu. ft. of gas and 20 bbl. of water daily with 1,280-psi flowing tubing pressure. The well was drilled to 10,900 ft. and perforated and fractured in Des Moines Granite Wash between 9,536 and 10,537 ft. The second well, #4 Isaacs B, is in Section 191, Block C, G&MMB&A Survey. It flowed 1.18 million cu. ft. of gas, 90 bbl. of 54-degree-gravity condensate, and 35 bbl. of water daily through fracture-stimulated perforations at 9,962-10,527 ft., also in Des Moines Granite Wash. Shut-in tubing pressure was 1,508 psi, with flowing tubing pressure of 1,076 psi on a 14/64-in. choke. Sanguine Gas Exploration LLC - 06/01/09 A reentry by Sanguine Gas Exploration of Tulsa flowed 615 bbl. of 43-degree gravity oil with 1.85 million cu. ft. of gas and 22 bbl. of water per day during an initial test gauged with a 14/64-in. choke. Sanguine perforated, fractured and acidized the well between 12,188 and 12,443 ft. in Des Moines Granite Wash and produced 3,700 bbl. of oil before testing. The well is in Section 18, Block A-7, H&GN Survey, A-866, of Wheeler County (RRC Dist. 10), Texas. Since its discovery in 1971, Mills Ranch Field has produced approximately 376.5 billion cu. ft. of gas and 3.53 million bbl. of condensate and oil from 85 wells. Chesapeake Operating Inc. - 05/01/09 In the Texas Panhandle, Chesapeake Operating Inc. completed a development well six miles north-northeast of Wheeler as a producer in Des Moines Granite Wash. The #3H Lott 2 is in Section 2, Block 3, B&B Survey, A-875, northern Wheeler County (RRC Dist. 10). Tested on a 12/64-in. choke, the initial flow was 2.6 million cu. ft. of gas and 245 bbl. of 57-degree condensate daily, with no water. The 15,480-ft. venture was horizontally drilled northward, perforated and fracture-stimulated in eight stages between 11,545 and 15,422 ft. Chesapeake reported respective shut-in and flowing casing pressures of 3,163 psi and 2,888 psi, and a calculated absolute open-flow of 19.5 million cu. ft. of gas per day. Chesapeake headquarters are in Oklahoma City. Marathon Oil - 05/01/09 Marathon Oil Co. of Houston has completed a deeper pool Morrow-Springer discovery in a southern Anadarko Basin area about five miles from Sentinel, Okla. Marathons #9-31 Alice is in Section 31-9n-19w in Washita County. On a 24/64-in. choke, the well initially flowed 1.5 million cu. ft. of gas and 15 bbl. of water per day. The well was perforated and fracture-stimulated in five intervals of the Morrow-Springer at 17,660-71 ft., 17,864-68 ft., 17,898-901 ft., 18,116-21 ft. and 18,384-93 ft. The shut-in pressure was 9,000 psi and flowing tubing pressure was 550 psi. Reported log top include the Des Moines Granite Wash at 10,727 ft., Atoka at 13,430 ft., and Morrow-Springer at 17,302 ft. Mewbourne Oil - 04/01/09 Mewbourne Oil Co. of Tyler, Texas, completed a St. Clair Field development test in the Texas Panhandle north of Miami, Texas. Flowing 4.3 million cu. ft. of gas, 38 bbl. of 58-gravity condensate and 39 bbl. of water daily, #865H McMordie 86 is in Section 86, Block C, G&M Survey, A-593, eastern Roberts County (RRC Dist. 10). The well is producing from a fracture-stimulated, open-hole horizontal leg at 9,654-11,360 ft. that was drilled northward in the Des Moines Granite Wash. IHS Inc. reports the flowing tubing pressure was 380 psi on a 25/64-in. choke, shut-in tubing pressure was 3,845 psi, and true vertical depth was 9,411 ft. Newfield Exploration Co. - 04/01/09 Houston-based Newfield Exploration Co. completed a western Anadarko Basin directional test northeast of Wheeler, Texas. The #7 Huff Ranch 48 is producing from a 3,000-ft. (gross) interval of the Des Moines Granite Wash. The northeastern Wheeler County (RRC Dist. 10) venture is located in Section 48, Block A-3, H&TC Survey, A-8215, and was perforated, fractured and acidized in seven intervals between 12,432 and 15,460 ft. The well had an initial flow rate of 4.11 million cu. ft. of gas, 229 bbl. of 63-gravity condensate and 520 bbl. of water per day after fracture and acid treatments. Initial tests were conducted on a 30/64in. choke with flowing tubing pressure of 715 psi; shut-in tubing pressure was 3,514 psi. Penn Virginia Oil & Gas Corp. - 04/01/09 A horizontal producer by Radnor, Pa.-based Penn Virginia Corp. flowed 9.64 million cu. ft. of gas, 684 bbl. of 54-gravity condensate and 40 bbl. of water daily. Drilled to Granite Wash about four miles southeast of Clinton, Okla., #1-4H Boatsman is in Section 4-11n-18w. Tested on a 20/64-in. choke, the completion produced from Des Moines Granite Wash from six stages between 12,275 and 15,660 ft. after a seven-stage frac job. The Washita County prospect had shut-in tubing pressure of 3,650 psi. Penn Virginia drilled the test northward to a measured depth of 15,729 ft. in the same section. True vertical depth is 11,824 ft.
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A new Morrow producer, flowing gas at an initial rate of 5.01 million cu. ft. with 210 bbl. of water daily, has been reported by Chesapeake Operating Inc., Oklahoma City. The producer is about eight miles north of Erick, Okla. The #2-16 Finnell, in Section 16-10n-25w, northwestern Beckham County, produces from eight fractured Morrow zones at 16,910-16,914 ft.; 16,934-36 ft.; 16,940-43 ft.; 17,085-88 ft.; 17,138-42 ft.; 17,166-70 ft.; 17,206-10 ft. and 17,241-45 ft. Tubing pressure flow was gauged at 3,949 psi on a 14/64-in. choke. Reported log tops are Missouri Granite Wash at 9,764 ft.; Des Moines Granite Wash at 11,931 ft.; Atoka Granite Wash at 13,619 ft.; Atoka Carbonate Wash at 14,329 ft., and Upper Morrow at 15,856 ft. Total depth is 18,500 ft. 16 Chesapeake Operating Inc. - 12/01/08 Reporting 10.1 million cu. ft. of gas and 650 bbl. of 53-degree condensate per day, Chesapeake Operating has completed a Colony Wash horizontal in its exploration and development program that targets Des Moines Granite Wash southeast of Clinton, Okla. The #1-18H Kliewer, in Section 18-11n-16w, northern Washita County, has produced following a four-stage frac job at 12,590-13,581 ft.; 13,705-14,696 ft.; 14,820-15,811 ft., and 16,045-16,918 ft. Flowing casing pressure was 4,465 psi on a 20/64in. choke and initial shut-in pressure was gauged at 5,600 psi. The 16,980-ft. Anadarko Basin venture was drilled northward to a bottomhole location in the section. True vertical depth reached 12,279 ft. and 4,305 ft. of lateral was drilled in Des Moines. Chesapeake Energy Corp. - 11/01/08 Chesapeake Energy Corp., Oklahoma City, has completed another in a series of Anadarko Basin development tests. This one produced 2.65 million cu. ft. of gas, 46 bbl. of condensate and 612 bbl. of water per day. Located approximately 11 miles northeast of Wheeler, Texas, in Allison-Britt Field, #5 Legg 6 reached 14,800 ft. and produced from Des Moines Granite Wash. The #5 Legg 6 sits in Section 6, Block E, G.W. Jacobs Survey, A-8449, in northeastern Wheeler County (RRC Dist. 10), Texas. The well was perforated and fracture-stimulated in five stages between 11,968-14,690 ft. with shut-in tubing pressure of 3,140 psi and flowing tubing pressure of 1,662 psi on a 23/64-in. choke. Calculated absolute open flow was almost 22 million cu. ft. of gas daily. Cimarex Energy Co. - 11/01/08 Cimarex Energy Co. and Chesapeake Energy have completed Anadarko Basin producers in northwestern Washita County, Okla. Cimarex's 15,291-ft. vertical #4-7 Toelle, in Section 7-11n-19w, was tested in Atoka at 15,006-15,166 ft. and initially flowed 4.21 million cu. ft. of gas, 20 bbl. of 42-gravity oil and 140 bbl. of water per day on an 11/64-in. choke after fracture-stimulation. The well, in Canute North Field, hit the top of Cherokee at 12,353 ft. and Atoka at 14,070 ft. To the east, Chesapeake has completed a horizontal well at the #1-11H Plump Dumpling, Section 11-11n-19w, on the southern outskirts of Foss, Okla. Tested on a 20/64in. choke, #1-11H Plump Dumpling flowed 2.26 million cu. ft. of gas daily, with no condensate or water from four fractured intervals between 12,695 and 17,027 ft. in Des Moines Granite Wash. Respective shut-in and flowing casing pressures were gauged at 4,200 psi and 2,900 psi. Chesapeake drilled the lateral north-northeastward to a true vertical depth of 12,523 ft. Laredo Petroleum Inc. - 10/01/08 Nineteen miles southeast of Canadian, Texas, Tulsa-based Laredo Petroleum Inc. completed a new producer in its recently designated Begert "10" Field in the western Anadarko Basin. he #1 Begert Trust 5, Section 5, Block 41, H&TC Survey, A-160, was drilled and completed in Granite Wash flowing 1.66 million cu. ft. of gas with 47 bbl. of 63-gravity condensate and 142 bbl. of water daily after fracture stimulation and perforation. With shut-in tubing pressure of 2,214 psi and flowing tubing pressure of 1,438 psi on an 18/64-in. choke, absolute open-flow was calculated at 3.49 million cu. ft. of gas daily. The southeastern Hemphill County (RRC Dist. 10) prospect is an east offset to a dual Des Moines/Atoka producer completed by Laredo in May at its #1 Begert Trust 6 in Section 6, Block 41, H&TC Survey, A-1310. Laredo has a very active program in Hemphill County that dates to late 2007 and now includes at least 14 producers, with no dry holes. St. Mary Land & Exploration Co. - 10/01/08 IHS Inc. reports that Denver-based St. Mary Land & Exploration Co. flowed 3.9 million cu. ft. of gas, 220 bbl. of condensate and 180 bbl. of water per day at an Anadarko Basin horizontal test completed five miles west of Bessie, Okla. The #4-26 Simpson, Section 26-11n-18w, was tested on a 30/64-in. choke producing from the Des Moines Granite Wash following fracture-stimulation in three stages. Flowing tubing pressure was gauged at 690 psi. Forest Oil Corp - 09/01/08 Denver-based Forest Oil Corp. recorded an initial flow rate of 3.93 million cu. ft. of gas, 150 bbl. of 63-gravity condensate and 1,420 bbl. of water per day at a development test completed 12 miles northeast of Wheeler, Texas. Located in the western Anadarko Basin, #3025 Reynolds, Section 4, Camp CSL Survey, A-24, northeastern Wheeler County, (RRC District 10) produced from four fracture-stimulated intervals of Des Moines Granite Wash. Forest Oil has a dozen prospects, and locations staked for almost 30 more. Chesapeake Operating Inc. - 09/01/08 Chesapeake Operating Inc. has completed the southernmost Des Moines Granite Wash producer to date in its Colony Wash horizontal program 2.5 miles west of Bessie, Okla. The #1-31H Buffing, Section 31-11n-17w, northern Washita County, flowed 1.97 million cu. ft. of gas, 125 bbl. of condensate and 1,142 bbl. of water per day from 30 intervals of Granite Wash between 12,774 and 16,377 ft. The numerous intervals were fracture-stimulated in three stages. Production was gauged on a 26/64-in. choke-both flowing and shut-in tubing pressures recorded at 1,000 psi-reports IHS Inc. Sanguine Gas Exploration LLC - 05/01/08 Sanguine Gas Exploration LLC, Tulsa, Okla., completed #2041 Mills Ranch in the Texas Panhandle's Wheeler County (RRC 10), about 15 miles east-southeast of Wheeler in Section 41, Block A-7, H&GN Survey, A-321. The venture flowed 2.52 million cu. ft. of gas a day on a 14/64-in. choke with 232 bbl. of condensate and 305 bbl. of water. The Des Moines Granite Wash producer had a flowing tubing pressure gauged at 2,600 psi. About 0.25-mile southeast, the company completed its #1016A Naomi in September 2006. The 16,694-ft. test flowed 261,000 cu. ft. of gas and 3 bbl. of water a day from Lower Atoka. After a 2007 workover, the well produced 1.93 million cu. ft. of gas, 128 bbl. of condensate and 65 bbl. of water a day from Upper Atoka. Cumulative production is now more than 274 million cu. ft. of gas and 9,900 bbl. of condensate. Laredo Petroleum Inc. - 02/01/08 26
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Laredo Petroleum Inc., Tulsa, Okla., plans a two-well exploration program for an area 20 to 21 miles southeast of the Canadian River in southeastern Hemphill County (RRC 10), Texas. It will drill #1 Begert Trust 3 in Section 3, Block 41, H&TC Survey, A-159, and two miles north, #1 Tepe Estate 37 in Section 37, Block 41, H&TC Survey, A-176. Stated objectives are Douglas, Tonkawa and Granite Wash, and deeper Pennsylvanian targets through the Morrow. A low-volume discovery is 1.25 miles northeast of the first wildcat. There, #1 Flowers 33 recovered 650 bbl. of oil in its first three months online as part of Hemphill Field. The second wildcat is about 1.5 miles northwest of the aforementioned well and a similar distance west of a mid-2004 discovery that opened Tepe Slavin Field. The #1 B.H. Flowers initially flowed 381,000 cu. ft. of gas and 20 bbl. of 63-gravity condensate a day from Douglas. The well produced 125 million cu. ft. of gas and 900 bbl. of condensate through July. Nearest production from an older Pennsylvanian horizon is 1.75 miles northwest of #1 Tepe at a 1982 discovery that opened Gem-Hemphill field. 25 Galleon Energy Inc. - 02/01/08 Galleon Energy Inc., Calgary, continues to find success along the flank of the Peace River Arch in Alberta. Galleon has set a 2008 capital budget of C$200 million to C$210 million to drill 118 wells. Plans call for 71 light-oil, 44 gas and three heavy-oil wells. Light-oil development and exploration will focus on Granite Wash, Wabamun and Beaverhill Lake plays at Kimiwan and Mclean Creek, Eaglesham and Puskwa. Gas in the Dawson Montney will be another focus of the company's program. Galleon produced 17,000 bbl. of oil equivalent at year-end 2007, and plans to exit 2008 at production between 20,000 and 22,000 bbl. oil equivalent per day. Unit Petroleum Co. - 01/01/08 Unit Petroleum Co., Tulsa, plans an Anadarko Basin wildcat six miles northwest of Miami in Roberts County (RRC 10), Texas. The #1 Rankin is in Section 21, Block B-1, H & GN Survey, A-131, and will evaluate Brown Dolomite, Granite Wash and Morrow, along with Upper Mississippian strata, to a depth of 10,800 ft. The Mendota Northwest/Saint Clair producing region is about two miles north-northeast. Also, the western flank of Red Deer Creek Field, which produces from Des Moines Granite Wash, is three miles east-southeast.
26
SELECTED REFERENCES GR ANI TE W ASH

___________ 1982a, Depositional history and reservoir quality of Granite Wash, in Gustavson, T. C., Bassett, R. L., Budnik, R., Finley, R., Goldstein, A. G., McGowen, J. H., Roedder, E., Ruppel, S. C., Baumgardner, R. W., Jr., Bentley, M. E., Dutton, S. P., Fogg, G. E., Hovorka, S. D., McGookey, D. A., Ramondetta, P. J., Simpkins, W. W., Smith, D., Smith, D. A., Duncan, E. A., Griffin, J. A., Merritt, R. M., and Naiman, E. R., Geology and geohydrology of the Palo Duro Basin, Texas Panhandle: a report on the progress of the nuclear waste isolation feasibility studies, 1981: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 82-7, p. 87 90. Aguilera, R.; Aguilera, M.S., 2002, The Integration of Capillary Pressures and Pickett Plots for Determination of Flow Units and Reservoir Containers, 81196-PA. Bachu, Stefan; Shaw, Jerry C.; Pearson, Robert M., 2004, Estimation of Oil Recovery and CO2 Storage Capacity in CO2 EOR Incorporating the Effect of Underlying Aquifers, MS 89340. Bassett, R. L., and Bentley, M. E., 1983, Deep brine aquifers in the Palo Duro Basin: regional flow and geochemical constraints: The University of Texas at Austin, Bureau of Economic Geology Report of Investigations No. 130, 59 p. Bennett, E.O., 1926, Development and Operations in the Panhandle Field, 926293-G. Brady, C.L.; ORear, C.H., 1996, An Evaluation of Gas Field Rules In Light of Current Conditions and Production Practices In the Panhandle Non-Associated Gas Fields, SPE 35254. Budnik, R., and Smith, D., 1982, Regional stratigraphic framework of the Texas Panhandle, in Gustavson, T. C., Bassett, R. L., Budnik, R., Finley, R., Goldstein, A. G., McGowen, J. H., Roedder, E., Ruppel, S. C., Baumgardner, R. W., Jr., Bentley, M. E., Dutton, S. P., Fogg, G. E., Hovorka, S. D., McGookey, D. A., Ramondetta, P. J., Simpkins, W. W., Smith, D., Smith, D. A., Duncan, E. A., Griffin, J. A., Merritt, R. M., and Naiman, E. R., Geology and geohydrology of the Palo Duro Basin, Texas Panhandle: a report on the progress of the nuclear waste isolation feasibility studies, 1981: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 827, p. 3886. Burgess, Roy A.; Finch, Clyde L., 1998, Synergistic Value Optimization from Reservoir to Sales - A West Panhandle Gas Field Case History, SPE 49066. Burnett, Mike, 2001, Stratigraphic adventures in the Granite Wash of Hartley County, Texas; a case history AAPG Bulletin, V. 85, N. 9, pp 1691. Byrd, Jack L., 1970, A Performance Study of the South Pampa Waterflood, 2424-PA. Calverley, Larry S., 1977, Problems Associated With the Drilling and Completing of Morrow Sands in Western Oklahoma, SPE 6442.
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Campbell, Eugene C., 1964, Isolated waterflood, SPE 856. Carter, Larry S.; Kelley, Shari A.; Blackwell, David D.; Naeser, Nancy D., 1998, Heat flow and thermal history of the Anadarko Basin, Oklahoma, AAPG Bulletin, V. 82, N. 2, pp. 291-316. Childs, Vicki L., 1989, Geology of the Granite Wash Formation; eastern Hartley County of the Texas Panhandle, Masters West Texas State University, 92 p. Christopher, C.A.; Clark, T.J.; Gibson, D.H., 1988, Performance and Operation of a Successful Polymer Flood in the Sleepy Hollow Reagan Unit, SPE 17395. Davi, Bob; McDonald, Tom; ALy, Mohamed, 2002, Practical Applications of NMR Technology Enhance Formation Evaluation, Testing and Completion Decisions, SPE 76717. DeGreer Jr, Don W., 1972, Running, Setting and Cementing Casing in Deep Wells, SPE 3910. Depletion Performance of Poorly Stimulated Layered Reservoirs Without Crossflow, SPE 59757. Dickey, Parke A.; Soto, Carlos, 1974, Chemical Composition of Deep Subsurface Waters of the Western Anadarko Basin, SPE 5178. Dillenbeck, Robert L.; Smith, Jim, 1997, Highly Relaxed Fluid Loss, Surfactant Enhanced Cement Improves Results on Deep Gas Wells, SPE 38599. Durst, Doug G.; Harris, TGravis; Contreras, Jesus D.; Watson, Don R., 2008, Improved Single-Trip Multistage Completion Systems for Unconventional Gas Formations, SPE 1152260. Dutton, Shirley, P., 1984, Fan-Delta Granite Wash of the Texas Panhandle, Oklahoma City Geological Society. Dutton, Shirley P., 1982, Hydrocarbon resource analysis of granite-wash facies, In: Geology and geohydrology of the Palo Duro Basin, Texas Panhandle; a report on the progress of nuclear waste isolation feasibility studies (1980); annual report for period October, 1979 September 30, 1980. Dutton, S. P., 1982b, Pennsylvanian fan-delta and carbonate deposition, Mobeetie Field, Texas Panhandle: American Association of Petroleum Geologists Bulletin, v. 66 , p. 389407. Dutton, S. P., Goldstein, A. G., and Ruppel, S. C., 1982, Petroleum potential of the Palo Duro Basin, Texas Panhandle: The University of Texas at Austin, Bureau of Economic Geology Report of Investigations No. 123, 87 p. Dutton, S. P., 1980, Depositional systems and hydrocarbon resource potential of the Pennsylvanian System, Palo Duro and Dalhart Basins, Texas Panhandle: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 80-8, 49 p. Fairless, C.M.; Joseph, W., 1986, Effective Well Stimulations With Gelled Methanol/Carbon Dioxide Fracturing Fluids, SPE 14656. Farshad, F.; Garber, J.D.; Lorde, J.N., 1999, Predicting Temperature Profiles in Producing Oil Wells Using Artificial Neural Networks, SPE 53748. Franco, C.A.; Solares, J.R.; Al-Marri, H.M.; Garzon, F.O.; Asiri, K.S.; Saeed, H.A.; Omairi, W.M.; Izquierdo, G.A., 2009, Evaluation of New Stimulation Technique to Improve Well Productivity in a Long, Open-Hole Horizontal Section: Case Study, SPE 120408. Frost, E. Jr.; Allen, T.; Feretl, Walter H., 1982, Formation evaluation in granite wash reservoirs, World Oil, V 195, N. 5, pp 121-132. Gallardo, Jaquidon, D.; Blackwell, David D., 1999, Thermal structure of the Anadarko Basin=, AAPG Bulletin, V. 82, N. 2, pp. 333-361. Gelpman, Norman Ray, 1960, West Sentinel Oil Field, Washita County, Oklahoma--Sedimentology of the "Granite Wash" and structural geology, Shale Shaker, V 10, N 6, pp2-16. Goldstein, A.G., 1981, Laramide-style basement deformation in the Oachita-Marathon foreland (abs.): Geol. Soc. America Abs. with Programs, v.13, p.238 Goodlow, K.; Huizenga, R.; McCasland, M.; Clift, D.; Neisen, C., 2009, Multilateral Completions in the Granite Wash: Two Case Studies, SPE 120478. Gray, Robert; Kenworth, J.S., 1962, Early Results Show Wide Range of Recoveries in Two Texas Panhandle Water Floods, 342-PA. Grieser, Bill; Hill, Britt; Brinska, John; Stout, Rex, 2001, Zone Selection and Production Prediction Using Advanced Logging Technology, SPE 67198. Grieser, Bill; Shelley, Bob, 2009, What Can Injection Falloff Tell You About Job Placement and Production In Tight Gas Sand? SPE 125732.
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Hailey, R.G.; McKaughan, C.A., 1994,Case Study: Isolation and Restimulation of Granite Wash Zone in Mendota, NW Field Using Inflatable Packer Frac Liners, SPE 27933. Handford, C. R., and Dutton, S. P., 1980, Pennsylvanian-Lower Permian depositional systems and shelf-margin evolution, paleogeography, and petroleum potential: The University of Texas at Austin, Bureau of Economic Geology Report of Investigations No. 102, 31 p. Hendrickson, Walter J., Paul W. Smith, Craig M. Williams, 1996, Regional Correlations and Reservoir Characterization Studies of the Pennsylvanian System in the Anadarko Basin Area of Western Oklahoma and the Panhandle of Texas, Transactions of the 1995 AAPG Mid-Continent Section Meeting Hendrickson, Walter J.; Smith, Paul W.; Williams, Craig M.; Woods, Ronald J., 1997, Advances in regional geology; a regional stratigraphic correlation and production allocation project within the Anadarko Basin and shelf of Oklahoma with emphasis on the "washes", AAPG Bulletin, V. 81, N. 8, pp. 1352. Hiestand, Thomas C., 1966, Petroleum migration and accumulation, A Paleohydrogeologic Concept, SPE 1585. Holtz, M. H., 1997, Oil atlas database of major Texas reservoirs: The University of Texas at Austin, Bureau of Economic Geology, Internal Report. Howard, Paul R.; Mukhopadhyay, Sumitra; Moniaga, Nita; Schafer, Laura; Penney, Glenn; Dismuke, Keith, 2009, Comparison of Flowback Aids: Understanding Their Capillary Pressure and Wetting Properties, SPE 122307. Hryhor, William J., 1985, Seismic Exploration for Pennsylvanian Granite Wash Reservoirs, Palo Duro Basin, AAPG Bulletin. Ingram, Stephen; Paterniti, Isaad; Pauals, Richard; Rothkopf, Brian; Stevenson, Chris; Conner, Jon, 2007, Enhancing and Sustaining Well Production - Granite Wash, TX Panhandle, SPE 106531. Ingram, Stephen; Paterniti, Isaad; Rothkopf, Brian; Stevenson, Chris, 2006, Granite Wash Field Study-Buffalo Wallow Field, Texas Panhandle, SPE 104546. Langille, Peter; Hildebrand, Jason; Massie, Kyle, 2008, Aggressive Drilling Parameters Capitalize on Cutter Technology and PDC Frame Advancement in Mature Field, SPE 105565. Leonard, J.W., 1977, W.F. James No. 1 (Hunton-Arbuckle) Mills Ranch Field, Wheeler County, Texas, SPE 6430. Manger, Walter L; Sustherland, Patrick K., 2000, Sequence stratigraphy and reservoir development, Marble Falls Limestone (Pennsylvanian), central Texas< Oklahoma Geological Survey Circular, 101, pp 356. Manrique, J.F.; Venkitaraman, A., 2001, Oriented Fracturing - A Practical Technique for Production Optimization, SPE 71652. Marchel, Ronald J.; Smith, Charles H.; Ramakrishna, Sandeep, 2009, Utilizing Simultaneous Capture of T1 and T2 NMR Data to Solve Reservoir Evaluation Issues, SPE 123932. Marin, B.A.; Mosher, S., 1993, Evidence for fluid flow in ductile shear zones, Granite Wash Mountains, Maria fold and thrust belt, Geological Society of America, 89th annual Cordilleran Section meeting and 46th annual Rocky Mountain Section meeting, pp 114. Mason, C.M., 1984, Optimizing Diamond Bit/Turbine Drilling Performance, SPE 12613. McCoy, T.RF.; Reese, D.E.; Johnson, P.G., 2000, Development and Application of a Cost Control System McDonald, C.E., 2005, The Application of a Reduced Polymer Borate System, SPE 94292. McNeal, Robert Paul, 1952, The stratigraphy and tectonics of Washita Beckham, and Roger Mills counties, Oklahoma, Shale Shaker, V. 2, N. 10, pp 5-17. Memet, Rachmat; Courville, Perry W., 1998, Case History - Hydraulic Rig Assist Utilized in Workover Program in Dayung Gas Field, Indonesia, SPE 47845. Middlebrook, M.L.; Aud, W.W.; Harkrider, J.D.; Hansen, J.T., 1997, An Evolving Approach In The Analysis of Stress Test Pressure Decline Data, 29599-PA. Moore, Car A., 1970, Geological Elements Involved in the Exploitation of Deep Reservoirs, SPE 3175. Moore, L.P.; Ramakrishnan, H., 2006, Restimulation: Candidate Selection Methodologies and Treatment Optimization, SPE 102681.
29
Murphy, Robert Parsons, 1985, Investigation of potential source rocks for the Granite Wash hydrocarbons, Washita County, Oklahoma, Masters University of Texas at Dallas, 99 p. Mutua, D.; Htay, A.; Barasi, M, 2002, Research and Development of an Empirical Method for Predicting Oil Recovery During EOR Studies, 02-02-N1. Orr, E. D, Kreitler, C. W., and Senger, R. K., 1985, Investigation of the underpressuring in the deep-brine aquifer, Palo Duro Basin, Texas: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 85-1, 44 p. Perry, W.J., Jr., 1989, Tectonic evolution of the Anadarko Basin region, Oklahoma: U.S. Geological Survey Bulletin 1866-A, 19 p. Phillips, A.M.; Wilson, W.J., 1984, Improved Drainage of Sand Pack Enhances Fracturing Fluid Recovery and Increases Production, SPE 12924. Presley, M. W., 1979, Upper Permian evaporites and red beds, in Dutton, S. P., Finley R. J., Galloway, W. E., Gustavson, T. C., Handford, C. R., and Presley, M. W., Geology and hydrology of the Palo Duro Basin, Texas Panhandle: a report on the progress of nuclear waste isolation feasibility studies, 1978: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 791, p. 3949. Reno, Duane H., 1955, Magnetic Properties of "Granite" Wash and Unwashed "Granite", Oklahoma City Geological Society. Richards, Allan R.; Brannon, Harold D.; Wood, William D.; Stephenson, Christopher J., 2009, High Strength, Ultralightweight Proppant Lends New Dimensions to Hydraulic Fracturing Applications, 84308-PA. Richards, Allan R.; Brannon, Harold D.; Wood, William D.; Stephenson, Christopher J., 2003, High Strength, Ultra-Lightweight Proppant Lends New Dimensions to Hydraulic Fracturing Applications, SPE 84308. Riggs, R.M. (1957), Thrusting along the Wichita Mountain front, Shale Shaker, vol. 8, no. 4, pp.7-11 Ritter, Steve, 2001, Horizontal drilling in the Texas Panhandle, AAPG Bulletin, V. 85, N. 9, pp 1695. Robinson, J.G.; Nemrava, J.E., 1998, The Values of Oil, Natural Gas and By-product Reserves, 1998-091. Robinson, J.G.; Nemrava, J.E., 2000, The Value of Oil, Natural Gas, and By-Product Reserves, 00-11-03. Schein, Gary, 2005, The Application and Technology of Slickwater Fracturing. Schenewerk, Philip A.; Sethi, Darshan K.; Fertl, Walter H.; Lochmann, M., 1980, Natural gamma ray spectral logging aids granite wash reservoir evaluation, 1980-BB. Senger, R. K., 1991, Regional hydrodynamics of variable-density flow systems, Palo Duro Basin, Texas: The University of Texas at Austin, Bureau of Economic Geology Report of Investigations No. 202, 54 p. Senger, R. K., Fogg, G. E., and Kreitler, C. W., 1987, Effects of hydrostratigraphy and basin development on hydrodynamics of the Palo Duro Basin, Texas: The University of Texas at Austin, Bureau of Economic Geology Report of Investigations No. 165, 48 p. Shelley, Bob; Harris, Phillip C., 2009, Data Mining Identifies Production Drivers in a Complex High-Temperature Gas Reservoir, 106463PA. Shelley, Bob; Lehman, Lyle; Grieser, Bill, 2004, Holistic Field Evaluations Improve Prospect Opportunities, SPE 88530. Shelley, Robert F.; Grieser, William V., 1999, Artificial Neural Network Enhanced Completions Improve Well Economics, SPE 52959. Shelley, Robert F.; Massengill, D. Richard; Scheuerman, Perry; McRill, Paul E.; Hamilton, Ray, 1998, Granite Wash Completion Optimization with the Aid of Artificial Neural Networks, SPE39814. Shelley, R.F.; Massengill, D.R.; Scheuerman, Perry, McRill, P.E.; Hamilton, Ray, 1998, Granite wash completion optimization with the aid of artificial neural networks, Proceedings; Permian Basin oil & gas recovery conference, pp. 527-533. Smith, P.W., W.J. Hendrickson, and R.J. Woods, 2001, Comparison of production and reservoir characteristics in Granite-Wash fields in the Anadarko Basin, in K.S. Johnson and D.F. Merriam, eds., Petroleum systems of sedimentary basins in the southern Midcontinent, 2000 symposium: OGS Circular 106, p. 19-27. Smith, D. A., 1983, Permeability of the deep-basin aquifer system, Palo Duro Basin, in Gustavson, T. C., Kreitler, C. W., Bassett, R. L., Budnik, R. T., Ruppel, S. C., Baumgardner, R. W., Jr., Caran, S. C., Collins, E. W., Dutton, A. R., Dutton, S. P., Fisher, R. S., Fogg, G. E., Hovorka, S. D., Kolker, A., McGookey, D. A., Orr, E. D., Roberts, M. P., Senger, R. K., Smith, Dale, A., and Smith, D. Anderson, Geology
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and geohydrology of the Palo Duro Basin, Texas Panhandle: a report on the progress of the nuclear waste isolation feasibility studies, 1982: The University of Texas at Austin, Bureau of Economic Geology, Geological Circular 83-4, 156 p. Spangle, L.B.; Calvert, D.G., 1972, Improved primary and remedial cementing with thixotropic cement systems, SPE 3833. Strickland, Bill D.; Purvis, Don L.; Cox, Stuart A.; Brinska, C.; barree, Robert D., 2003, Analysis of Stimulation Effectiveness in the Ammo Field Granite Wash Based on Reservoir Characterization & Completion Database, SPE 80893. Stronach, Graham R.; Voden Jr., Gerre S.; Hubbard, Jeffrey S.; Ming, C. Michael; Steward, K.; Northcutt, J.Craig, 2001, Engineered Bottom Hole Assembly Design and Equipment Selection Criteria Prove To Be Key Factors in a Challenging Drilling Environment, SPE 67192. Swindell, G.S., 1989, Success Rates and Reserves in the Hardeman Basin of Texas, SPE 12924. Taylor, L.L.; Carden, R.S.; Selinger, K.A.; Shursen, Grace, 1994, Feasibility Study for the Drilling of a Horizontal Well in the West Panhandle Field, SPE 27929. Thibidous, Steven; Smith, Charles H.; Huggins, Ken, 2009, Comparison of Magnetic Resonance Bin Distribution Permeability to Observed Production, SPE 120641 Tutten, William D., 1972, Geology and Development of Washita Creek Field, SPE 3914. Vanderhill, Amy L.; Berg, Robert R., 1987, Depositional environment and reservoir characteristics of Middle Pennsylvanian Granite Wash, northern Palo Duro Basin, Oldham County, Texas, AAPG Bulletin, V 71, N. 2, 244 p. Vincent, M.C., 1997, Examining Our Assumptions -- Have Oversimplifications Jeopardized Our Ability to Design Optimal Fracture Treatments?, SPE 119143. Watson, Don R.; Durst, Doug G.; Harris, Travis; Contreras, Jesus D., 2008, One-Trip Multistage Completion Technology for Unconventional Gas Formations, SPE 114973. Weaver, Jim; Nguyen, Philip; Ingram, Stephen, 2007, Sustaining Well Productivity -- Case Histories, SPE 102964. Weimer, Bert A., 1997, Remote sensing search and prediction of undeveloped oil production in the Panhandle Field, Texas, AAPG Bulletin, V. 81, N. 8, pp. 1356-1357. Wenger, Lloyd M.; Pottorf, Robert J.; Macleod, Gordon; Otten, Glenn; Dreyfus, Sebastien; Justwan, Holger; Wood, Emily Sekula, 2009, Drill Bit Metamorphism: Recognition and Impact on Show Evaluation, SPE 125218. Wharton, Amy Laura, 1986, Depositional environment of the Middle Pennsylvanian granite wash; Lambert 1, Hryhor, and Sundance fields, northern Palo Duro Basin, Oldham County, Texas, Masters Texas A&M. White, J.L.; Means, J.O., 1975, Polysaccharide Derivatives Provide High Viscosity and Low Friction at Low Surface Fluid Temperatures, 4936-PA. White, J.L.; Means, J.O.; Jehlik, K.D.; Barrett, N.D., 1975, Polysaccharide Derivatives Provide High Viscosi and Low Friction at Reduced Temperatures, SPE 5401. Wieland, D.R.; Calvert, G.D.; Spangle, L.B., 1969, Design of special cement systems for areas with low fracture gradients, SPE 2556. Williams, Peggy, 2009, Granite Wash, Oil and Gas Investor. Wittenback, Stuart; Lower, Steve; Biagi, Chris, 1999, Use of Soil Venting for Remediation of Condensate Contaminated Soils, SPE52718 Yoosuf, S.; Dunbar, B., 2005, Introduction of New PDC Cutter Technology Increases Drilling Efficiency in Central U.S. Wells, SPE 93834. Zeliff, C.W.; Bastian, Dixie, 2000, New play in a mature basin; prospecting for gas, AAPG Bullletin, V 84, N. 9, pp. 1517.
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