Devon gave a very optimistic update on their Cana-Woodford operation during their 1Q2010 conference call. First, take a look at where this program is occurring. It is in the Anadarko Basin in Oklahoma. They have 180,000 net acres.
Devon provided some basic statistics on the program. During the 1Q2010 they completed 16 wells with an average 24-hour IP of 6 MMcf/d. Two of their wells, the Brigham and Kurt came online @ 10 Mmcfe/d, which Devon then estimates an EUR of 10 Bcfe for those two.
Beyond the program stats, they had an impressive statement about EURs in the play. They estimate EUR of 11 Bcfe, which includes 500,000 bbls of NGLs. When you convert 500,000 bbls of NGLs to Mcfe with a generous 6:1 ratio, the NGLs contribute about 3 Bcfe to the 11 Bcfe total. To further enhance their economics on the play, they are building a cryogenic liquids plant to handle the processing of the NGLs which should be completed in early 2011. Below is a type curve of Devon Cana Woodford wells generated from HPDI Production Tools. I included only wells since 2009 in an effort to weed out some earlier wells which may have not performed up to the 11 Bcfe standards.
This type curve shows almost a Bcfe produced after a little over a year. It does not include NGLs. The first full month production is 3,542 Mcf/d and 30 bbls liquids/d. Without projecting forward, this curve does not appear to have 11 Bcfe potential. However, Devon could easily have new techniques which could result in EURs up to about 11 Bcfe. We’ll have to wait until their 2Q2010 earnings call for another update.
Devon is taking this program very seriously. Below is a chart from a recent Devon presentation detailing a ramp-up in the Cana program through the next few years. This includes operating up to 20 rigs from the 7 or so currently in the play.
Keep coming back to the Woodford Unconventional Update for more information on Devon and other operators. We will have detailed 2Q2010 earning call summaries for the most active operators in all the covered plays.
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