A Lower Pennsylvanian target that hasn’t been tested until recently with horizontal drilling could, according to Continental Resources Inc., make the state the third-largest oil producer in the U.S.

The Springer Shale is in south central Oklahoma. The reservoir is overpressured and the geology is faulted and highly variable. According to Continental, the Springer, termed Mississippian Goddard by some companies, is relatively shallow at 12,500 feet and ranges in thickness up to 150 feet. It is an overpressured, organic-rich, highly siliceous formation with a low percentage of clay and high porosity and permeability. The Springer lies above the Meramec and Woodford formations.

Based on data collected from 11 producers to date, estimated ultimate recovery for a well with a 4,500-foot lateral is 735,000 barrels of oil and 1.23 billion cubic feet of gas, or 940 million barrels of oil equivalent (boe). Completed well costs are around $9.7 million.

According to Wood Mackenzie, Oklahoma oil production could double from where it is today by 2020 and then get into all-time highs right about the beginning of the next decade.

At the November Oklahoma State lease sale, the highest bids generally went for lands in Grady County, a focus area for the Woodford and emerging Lower Springer (Mississippian) horizontal shale drilling plays.

1 Continental Resources Inc.: 11/21/14

Results from four Anadarko Basin-Springer Shale producers were announced by Oklahoma City-based Continental Resources Inc. In Section 27-7n-6w of Grady County, Okla., #1-27H AC Walters flowed 1.36 MMcf of gas, 746 bbl of oil and 180 bbl of water per day from Lower Springer Shale after fracturing. The 17,174-ft well has a true vertical depth of 12,327 ft and it is producing from 12,688-17,054 ft. A southwest offset in Section 34-7n-6w, #1038 Nancy J, produced 1,815 bbl of oil equivalent per (79% oil) in a 24-hour test (1,444 bbl of oil and 2.23 MMcf of gas). It was designed with a parallel north lateral that bottomed in Section 28-7n-6w. The #1-17H Schoof, Section 17-7n-6w, flowed 1,084 bbl of oil and 2.29 MMcf of gas per day. The well had a projected depth of 17,265 ft. The #1-21H Ince, Section 28-3n-4w in Garvin County, produced 892 bbl of oil and 870 Mcf of gas per day. No additional information is available regarding the Nancy, Schoof and Ince wells. According to the company, all wells have an average lateral length of about 4,475 ft and estimates that the ultimate recovery for a 4,500-ft lateral well in the oil fairway of the play will be approximately 940 Mboe.

2 Continental Resources Inc.: 11/21/14

A Grady County, Okla., Lower Springer Shale horizontal prospect initially flowed 898 bbl of 47-degree-gravity oil, 1.67 MMcf of gas and 102 bbl of water per day. Continental Resources Inc.’s #1-13H Lynn is in Section 13-3n-5w. It was drilled northward across the section to 18,205 ft and the true vertical depth is 13,301 ft. The well was tested on a 28/64-in. choke and the flowing casing pressure was 880-psi. Production is from a fracture-stimulated interval between 13,768 and 18,085 ft.

3 Newfield Exploration Inc.: 11/21/14

A Lower Springer Shale (Mississippian-Goddard) discovery was reported by Tulsa-based Newfield Exploration Inc. The #1H-9X Jarred is in Section 21-2n-4w of Stephens County, Okla. It initially flowed 1.95 Mbbl of oil equivalent (1.658 Mbbl/d of oil and 1.75 MMcf/d of gas). Production is from a 4,850-ft lateral. The well was permitted as a 24,382-ft extended-lateral test projected northward across Section 16 with a bottomhole location in Section 9-2n-4w. According to Newfield, the company expects to drill, or participate in, up to 12 additional tests during 2014 and has an active 2015 Springer Shale exploration program in 2015.

4 Continental Resources Inc.: 11/21/2014

Oklahoma City-based Continental Resources Inc. has completed two more horizontal Springer Shale producers in an emerging horizontal play in Grady County, Okla. The #1-15H Scott, Section 15-3n-5w, flowed 203 bbl of 47-degree-gravity oil, 487 Mcf of gas and 478 bbl of water per day. The 18,129-ft well has a true vertical depth of 13,570 ft. It was perforated and fracture-stimulated between 13,665 and 17,887 ft in a southerly lateral. The 18,217-ft #1-11H Anne is in Section 11-3n-5w and flowed 566 bbl of 43-degree-gravity oil, 1.2 MMcf of gas and 1.92 Mbbl of water per day. It was tested on a 30/64-in. choke producing from acidized and fractured perforations at 13,664-18,138 ft in a north lateral. The true vertical depth is 13,167 ft.

5 Continental Resources Inc.: 10/13/14

Continental Resources Inc. announced results from three horizontal Springer Shale-Anadarko Basin discoveries in Grady County, Okla. A Lower Springer Shale venture, #1-21H K.L. Fulton, in Section 21-7N-6W, had an initial peak rate of 2,122 boe/d from a horizontal leg drilled north across the section. The projected depth was 16,890 ft and completion details are not yet available. A quarter mile east, in Section 22-7n-6w, #1-22H Gala initially flowed 498 bbl of 45-degree-gravity oil, 779 Mcf of gas and 453 bbl of water daily through perforations at 12,751-15,968 ft after fracturing. The 16,104-ft well has a true vertical depth of 12,299 ft. The #1-20H Wilkerson, Section 20-7n-6w, had an initial flowing potential of 528 bbl of 48-degree-gravity oil and 803 Mcf of gas per day. It was tested on a 12/64-in. choke and production is from a fractured north-trending lateral at 13,116-17,297 ft. Continental is based in Oklahoma City.