The Woodford Shale is back in the spotlight once again. At this week’s Continental Resources investor day, Continental was pleased to announce their Anadarko Woodford discovery, which the company has coined as “SCOOP.” The play, which is similar to the Bakken, Marcellus, and Eagle Ford shales, could add 1.8 billion boe to Continental’s reserves in the next few years. The company has a commanding leasehold position in the liquids-rich play with a little more than 170,000 net acres and 2,200 net locations based on 80 acre spacing. Of that acreage 23% is HBP and 80% of the drilling has been done in the past 18 months. The play provides favorable economics with 40 to 55% rate of return based on $3.50 gas and $90 oil. So far, Continental has drilled or participated in 35 wells to date and over 600 square miles have been de-risked.
In order to show the geographic location and some of Continental’s activity in the SCOOP, I’ve plugged some information into Drillinginfo and displayed it on the maps below.
SCOOP wells cost about $8.5 to $9 million to complete at the moment. The condensate wells cost around $9 to $9.5 million. Continental is expecting those well costs to come down as more Bakken strategies are applied to the SCOOP. The company has drilled its first extended lateral and plans for even more in 2013.
The Woodford hasn’t seen this kind of action in a while. So I’m excited about this discovery. I plan to take a deeper look into the geology of this area of the Woodford so stay tuned to the Unconventional Reservoir Blogs for that. Also, feel free to check out other activity in the play by visiting the Woodford Folder in the Drillinginfo DNA section.