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Forest Oil and Linn Energy Have High Hopes For The Granite Wash


There are some seriously impressive wells coming out of the Granite Wash.  The Forest Oil Frye Ranch 2010H produced 2,206 BC/D + 23,307 Mcf/D in the second month.  Not to mention the Linn Energy Black 50 that IPed at 60.2 MMcfe/d, and produced 2,080 BC/D + 19,964 Mcf/D in its second month.  Wells like these, combined with the current pricing environment, have set the stage for a breakout 2011 for Granite Wash horizontal wells.  Operators are poised to ramp up their Granite Wash programs as they reallocate rigs and CAPEX from gassy regions.

Linn Energy and Forest Oil have offered some great insights into their program in recent weeks.  First off, Linn Energy has been experiencing longer than desired shut-in times for their Granite Wash horizontals as they complete offsets.  To combat this, they will begin simulfracing.  They currently have 3 rigs operating offset to the much ballyhooed Black Lease.  Linn also stated they have not experienced frac crew delays nor have they had to deal with takeaway contraints, a testament to their planning.

Forest Oil announced they succesfully tested an Atoka zone which produced meaningful amounts of liquids.  They stated 17 Bbls of condensate + 81 Bbls NGLs per MMcf.  Most of the reports I had been hearing said that the Atoka was dry so this is promising.

It seems to me that there is a high level of heterogeneity in the Granite Wash.  Operators are delineating their acreage, testing different zones, trying to find sweet spots and paying close attention to competitor wells in  efforts to derisk their acreage.

I have posted a map below of the top 15 Texas, 2010 wells ranked by highest liquids volumes in their peak month.  It is colored by operator and bubbled by max monthly liquids.  The Wheeler sweet spot is evident, although look for operators to find similar success in Hemphill.

Drop me a comment or email if you want to discuss anything Granite Wash related, or any unconventional play for that matter.

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