MIDCONTINENT & PERMIAN BASIN

1 A discovery by Rio-Tex Inc. in Edwards County (RRC Dist. 1), Texas, was tested flowing 2.6 million cu. ft. of gas through acid-treated perforations at an undisclosed interval in Ellenburger. The #9401 Whitehead Wardlaw was drilled to a total depth of 12,300 ft. on a 40-acre Val Verde Basin lease in Section 94, Block D, GC&SF RR Co Survey, A-2026. Additional details were not reported. Rio-Tex headquarters are in San Antonio.

2 A stepout from an abandoned Central Kansas Uplift field by Mai Oil Operations Inc. of Dallas pumped 100 bbl. of oil daily with no water. The #1 Helfrich is in Section 15-17s-15w, Barton County. The well was perforated and acidized in Toronto at 3,194-98 ft. and five intervals of the Lansing-Kansas City at 3,257-61 ft., 3,311-14 ft., 3,321-24 ft., 3,402-06 ft. and 3,415-19 ft. Mai reported log tops for Toronto at 3,190 ft., Lansing at 3,238 ft. and Arbuckle at 3,488 ft. and the base of the Kansas City at 3,466 ft.

3 A reentry by Dallas-based Exco Resources flowed 41-gravity oil at an initial rate of 210 bbl. per day, with 838,000 cu. ft. of gas daily and no water. The #1-31A Brisendine is in Section 31-27n-24w, western Harper County, Okla., and produces from two fractured and acidized Cherokee intervals at 6,452-60 ft. and 6,471-73 ft. Using an 18/64-in. choke, the flowing tubing pressure was 250 psi and the shut-in tubing pressure was 1,375 psi. The reentry deepened a 5,550-ft. dry hole that was drilled in 1970.

4 According to IHS Inc., Apache Corp. of Houston completed two new Cherokee producers in Harper County, Okla. The #2-14 Mary Joyce initially flowed 315 bbl. of 42.5-gravity oil, 733,000 cu. ft. of gas and 12 bbl. of water per day. In Section 14-26n-24w, the well was tested on a 64/64-in. choke and produced from four fracture-stimulated zones at 6,664-68 ft., 6,670-78 ft., 6,691-98 ft. and 6,712-14 ft. Shut-in tubing pressure was 3,295 psi, with flowing tubing pressure of 120 psi. Apache reported log tops for the Tonkawa at 5,532 ft., Cherokee at 6,650 ft. and Chester at 6,904 ft. The second completion is #3-29 Rose Hill in Section 29-27n-24w. It initially pumped 62 bbl. of 40-gravity oil and 91,000 cu. ft. of gas per day, with no water, through treated perforations at 6,420-24 ft., 6,434-48 ft. and 6,477-81 ft.

5 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 fracture-stimulation 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 year-end and plans to drill more than 20 horizontal Granite Wash wells in 2010.

6 Tulsa-based Laredo Petroleum Inc. has a discovery in southern Oklahoma’s Fletcher play. Located in Grady County, #1-11 Large flowed 1.55 million cu. ft. of gas with 166 bbl. of water per day from an acidized and fractured Lower Springer zone at 19,068-19,108 ft. The well is in Section 11-3n-8w. Production was measured on a 10/64-in. choke with 3,780-psi flowing tubing pressure. Two deeper treated intervals of the Lower Springer were perforated at 20,155-74 ft. and 20,204-11 ft. and yielded a flow rate of 217,000 cu. ft. of gas and 67 bbl. of load water daily on a 48/64-in. choke. Laredo recovered 229,000 cu. ft. of gas per day during tests at 20,544-60 ft. and 20,594-20,607 ft. in Lower Springer after acid and fracture-stimulation. Flowing casing pressure for the latter test was 645 psi on a 48/64-in. choke and cast-iron bridge plugs were set at 19,620 ft. and 20,390 ft.

7 IHS Inc. reported that XTO Energy Inc. of Fort Worth completed a horizontal Woodford discovery in Lone Grove, Okla. The #1-15H Prairie Valley is an Arkoma Basin producer in Section 15-4s-1w, Carter County. The initial flow was 310 bbl. of 45-gravity oil, 2.15 million cu. ft. of gas and 1,946 bbl. of water per day after acid treatment and a 10-stage frac job. The well is producing through perforations between 11,720 and 15,550 ft. in a southeast lateral. The well was drilled to 15,614 ft., 10,834 ft. true vertical. The shut-in tubing pressure was 2,000 psi and flowing tubing pressure was 510 psi on a 64/64-in. choke. The XTO venture is the only horizontal test to date in the township, and just the second well in the township with production reported from Woodford.

8 A wildcat by Triple Diamond Energy Corp. of Dallas was reported as a discovery in Seminole Field in Seminole County, Okla. The #14-1 Overlook is in Section 14-10n-7e and was drilled to 4,563 ft. Log samples and evaluations indicate a significant hydrocarbon pay and the extension of the Hunton porosity and permeability trend of the Hunton play in Seminole County; samples and evaluations were correlated to nearby #13-1 Overlook, which was drilled and abandoned in 2008. A preliminary estimate indicates that there are 2.6 million bbl. of recoverable reserves within the 560-acre closure. Triple Diamond Energy holds acreage to the west of the discovery well location and has options to acquire additional acreage to the north and south. The company plans to drill #14-2 Overlook and #1-3 Overlook in 2009.

9 In Oklahoma’s Arkoma Basin, Newfield Exploration Mid-Continent Inc. reported a horizontal producer in Crom­well sand. The #2H-22 Cunningham is in Section 22-2n-10e in Coal County and was tested through perforations between 8,515 and 13,413 ft. The 13,659-ft. well flowed 6.51 million cu. ft. of gas and 1,010 bbl. of water per day after a 10-stage frac job. Houston-based Newfield has completed three horizontal Woodford producers on the same pad—two drilled northward to Section 15 and the other southward to a bottomhole in Section 22. Both were onstream in May 2008.

10 In Section 11-6n-32w of Sebastian County, Ark., a directional Bonanza Field well was completed by Houston-based Highland Oil & Gas LLC. The #7-11 Johnson tested at 2.96 million cu. ft. of gas per day through acid- and fracture-stimulated perforations in Middle Atoka at 3,962-4,532 ft. On a 27/64-in. choke, flowing and shut-in casing pressures were 590 psi and 866 psi, respectively. Absolute open flow was calculated at just under 5.52 million cu. ft. per day. The well was drilled to a total depth of 5,695 ft., 4,804 ft. true vertical, and was plugged back to 5,121 ft. Highland is active at two other tests in Section 11, #8-11 Johnson and #9-11 Johnson.

11 In central Conway County, Ark., Chesapeake Operating Inc. completed a Fayetteville shale producer from a common drillpad five miles north of the town of Morrilton. The #2-10H Collinsworth 7-16 is in Section 10-7n-16w and was tested at 6,147-10,041 ft. flowing gas at a maximum rate of 6.2 million cu. ft. per day. The Arkoma Basin well was drilled northward to a measured depth of 10,149 ft. Chesapeake is based in Oklahoma City.

12 A maximum flow rate of 8 million cu. ft. of gas per day was reported by Chesapeake Operating Inc. at an Arkoma Basin-Fayetteville development well in White County, Ark. The #1-15H Reva Deen 7-8 is in Section 15-7n-8w and produces from a fracture-stimulated, extended-reach lateral at 5,690-12,564 ft. Chesapeake currently has 20 operating rigs at work in the Fayetteville shale play. BP America Production Co. is a 25% joint-venture partner.