Analyzing and Benchmarking the Unconventional Target Zones in the Uinta Stacked Play
Last month we published an analysis of the Uinta Basin, exploring its historical growth, regulatory and logistical constraints, and transformation into a prospective unconventional play. This week we’ll continue the analysis and look at some of the primary unconventional target zones that have growing momentum. Using TGS Well Data Analytics, we’ll show how to quickly analyze production profiles across a basin and perform a comparative analysis between different landing zones. These new unconventional targets could potentially result in upwards of 600 MBO estimated ultimate recovery per well, stacking up favorably with the top oil plays in the country.
Starting at the beginning of available public production, we can see that the dominant development targets historically have been Tertiary Green River and Wasatch formations, the Cretaceous Mesaverde Group, and the Permian Weber Formation (Figure 1). For those unfamiliar with the basin stratigraphy, the USGS Stratigraphic framework of the Uinta Basin is a great resource to have handy. We can see that, while these formations tend to have a lower average initial rate (average IP30 between 2,100 to 4,400 BO), they also have a pretty shallow decline rate (ranging between 0.5%-3% effective decline over the first 10 years). These legacy vertical Uinta wells performed fairly well, but, with the advent of unconventional drilling technology and relaxed regulatory and logistical concerns discussed last week, the full potential of the basin is starting to be explored.
Figure 1.
Looking at horizontal wells post-2005 (Figure 2), we can still see significant production from the legacy formations, primarily Green River, Wasatch, and Mesaverde, but there are also some additional target zone definitions that start to appear with considerable production. These include specific members of the Green River Formation, like the Uteland Butte, Castle Peak, and Douglas Creek. Horizontal wells targeting these specific members average between 20-36 MBO IP30 and 37-47 BO/ft EUR. The top producer, by cumulative and average well performance, is the Uteland Butte, followed by the Castle Peak and then Douglas Creek. However, when forecasting out to the life of the well, Douglas Creek wells result in an average predicted 604 MBO EUR, followed by Uteland Butte and Castle Peak at 488 and 477 MBO EUR respectively.
Figure 2.
In June of 2023, we showed that horizontal well performance from the Uinta compares favorably with the Delaware Basin, and that comparison was confirmed again in August with a benchmark by basin showing that that unconventional wells in the Uinta ranked in the top 3 onshore US unconventional basins. This potential has not gone unnoticed or unremarked by operators working in the basin. SM Energy, in their Third Quarter Operating Results, reported that three wells completed over 10,000 ft in the Douglas Creek averaged 870 Boe/d in initial production with 94% oil. They are currently running 3 rigs across the basin. Ovintiv, in their Third Quarter Operating Results, highlighted the Uinta’s “competitive margin similar to the Permian”, where they are targeting “multiple benches & ~1k ft of pay” across their 110k undeveloped Uinta acres. Interestingly, FourPoint Resources and Quantum Energy Partners have just announced they are acquiring this acreage from Ovintiv, highlighting the Uinta Basin’s “rich inventory as a key factor” of their decision. And Crescent Energy, in their November 2024 Investor Presentation, highlighted 650 gross undeveloped locations with an expected 2X multiple on invested capital across their Uinta acreage. With robust production profiles, relaxed logistical constraints, and strong industry interest, the Uinta Basin is slowly developing into a premier unconventional play.
For more information about TGS Well Data Analytics or to schedule a demo, please contact us at WDPSales@tgs.com.
