Copano Injecting CAPEX Into Arkoma Woodford

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Copano Energy is a midstream company with operations in Oklahoma, Texas, and the Rocky Mountains.  They discussed current Woodford operations in their 2Q2010 Earnings Call.

Copano stated they are going to invest an additional $10MM into their Cyclone Mountain System located in the Atoka, Latimer, and Pittsburgh area of the SE Oklahoma Arkoma Basin.  Woodford Shale production from this area is lean gas.  Copano has been in contact with operators, and anticipate 6 new rigs drilling in the area by the end of 2010.  They say there are four operators with Woodford Shale interests in this immediate area and that the CAPEX will go towards infrastructure for their production.

Below are two graphics of the area. The first is an image from the Copano Website detailing their current pipelines, compressor stations, and processing plants.  I have circled the area of interest.

Copano Injecting CAPEX Into Arkoma Woodford

Here is a Drillinginfo generated map of new, 2010 producing Woodford leases in these counties, colored by maximum monthly production to give an idea of how productive these leases can be.  Many of the leases are producing an impressive 4MMcf/d and greater.

Copano Injecting CAPEX Into Arkoma Woodford

Other anticipated growth areas for Copano are in the Barnett Combo and Eagle Ford.  They are also involved in a JV with Kinder Morgan in the Eagle Ford called Eagle Ford Gathering.

Check the Woodford Unconventional Update located in DNA for more Woodford news and analysis.

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Justin Birmingham

Justin Birmingham is a Research Analyst at Drillinginfo. He creates proprietary research studies, works with statistical models and manages datasets for the DI Analytics team. Justin earned his Bachelor of Science from Texas State University – San Marcos.