Update on Horizontal Drilling in KansasUpdate on Horizontal Drilling in KansasCurrent Status and Case Histories

Tim CarrPaul Gerlach

History of Horizontal DrillingHistory of Horizontal Drilling

First Horizontal Well 1929 Economic Viability in 1980’s

Rospo Mare Field (1982) Prudhoe Bay (1984) Bima & Arjuna Fields (1986-1987) Austin Chalk (1985-1987)

Through 2000 (Stark, in press) 23,385 Horizontal Wells from 69 Countries

United States 10,066 Canada 9,655

Horizontal Wells - WorldHorizontal Wells - World

Phillip Stark - IHS Energy Group

Horizontal Wells - United StatesHorizontal Wells - United States

Phillip Stark - IHS Energy Group

Horizontal Wells - United StatesHorizontal Wells - United States

Phillip Stark - IHS Energy Group

89 Approved “Intent to Drill” Applications 53 Horizontal Wells Confirmed

1999 - 15 Wells 2000 - 14 Wells

3 Deviated Wells Confirmed many more but unreported

2 Slant (high angle) Wells Confirmed

Horizontal Drilling in KansasHorizontal Drilling in KansasCurrent Status (Through December 2000)

Horizontal Drilling in KansasCurrent Status (December 2000)

02468

1012141618

Com

ple

tion

s/P

erm

itts

Year

McCoy Petroleum CAROTHERS 1-1H, Harper Co.

Petroleum Inc BUCHOLTZ GAS UNIT 2-15H, Cheyenne Co. ZWEYGARDT GAS UNIT 2-26H, Cheyenne Co.

Anadarko Petroleum Corporation CITY OF LIBERAL C1, Seward Co. HUNGATE A7, Haskell Co.

Ensign Operating Co. HUCK 1-17H, Comanche Co.

Horizontal Drilling in Kansas - 1Horizontal Drilling in Kansas - 1Activity During 2000 (Intents)

Mull Drilling Company, Inc. UMMEL 4-H, Ness Co.

KLM Exploration Company, Inc. BANKERS LIFE 4-H1, Leavenworth Co. BANKERS LIFE 4-H2, Leavenworth Co. BANKERS LIFE 4-H3, Leavenworth Co. BANKERS LIFE 4-H4, Leavenworth Co.

Pan Gas Storage Co BARTEL1-5, Meade Co. NICHOLS 3-2, Meade Co.

Anderson Energy, Inc. COLBORN 1-26H, Barber Co.

Horizontal Drilling in Kansas - 2Horizontal Drilling in Kansas - 2Activity During 2000 (Intents)

1st Horizontal Well in Kansas Mar-1988, Phillips Petroleum, Trego Co. 196 ft. Lateral in Marmaton Frmn.

Build Rate & Radius Ranges Shortest: 2.7o/ft. / 33 ft. Longest: 1.4o/100 ft. / 1087 ft.

Measured Depth / True Vertical Depth Shallowest: 250 ft. / 200 ft. Deepest: 7969 ft. / 6190 ft.

Horizontal Lateral Length Shortest: 40 ft. Longest: 1877 ft.

Most Frequently Drilled Formation Mississippian - Osage (9), St Louis (5), Spergen-Warsaw (3)

Horizontal Drilling in KansasHorizontal Drilling in KansasGeneral Characteristics of the Horizontal Wells

Horizontal Drilling in KansasSpatial Distribution and Formation

Marm Miss ArbkMcClthBevierPeruChse Gas Stg

Cret.

2

2

4

2000 Activity

Horizontal Drilling in KansasCurrent Status

Mississippian, et al

Horizontal Wells by Formation

0

2

4

6

8

10

Fre

qu

en

cy

Horizontal Drilling in KansasCurrent Status

TVD vs Lateral Length

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Lateral Length (ft)

Chase Group

Mississippian

Arbuckle

Viola

McClouth

Horizontal Drilling in KansasCase Histories - McClouth Formation

Toe Up

Atokan McClouth FormationHorizontal - Vertical Productivity Comparison

31,240

5,655

100

1,000

10,000

100,000

Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

Seaver 9-H Mnthly Rate

Seaver 9-H Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - McClouth Formation

PIF: 5.5

Horizontal Drilling in KansasCase Histories - McClouth Formation

Atokan McClouth Formation

68494

100

1000

10000

100000

Date

Oil

(Mo

nth

ly)

100

1000

10000

100000

Oil

(Cu

m.)

Horizontal Drilling in KansasCase Histories - Osage Formation

Mississippian Osage FormationHorizontal - Vertical Productivity Comparison

52,064

9,738

100

1,000

10,000

100,000

Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

Billings 1 HZ Mnthly. Rate

Billings 1 HZ Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Osage Formation

PIF: 5.3

Mississippian Osage Fm. - Oppy South

75,395

100

1000

10000

100000

Jan-97

Jan-98

Jan-99

Jan-00

Date

Oil

(Mo

nth

ly)

100

1000

10000

100000

Oil

(Cu

m.)

Horizontal Drilling in KansasCase Histories - Osage Formation

Horizontal Drilling in KansasCase Histories - Spergen-Warsaw Formation

Mississippian Spergen-Warsaw FormationHorizontal - Vertical Productivity Comparison

17,053

7,850

100

1,000

10,000

100,000

Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99

Shearer B 1-26H Mnthly. Rate

Shearer B 1-26H Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Spergen-Warsaw Formation

PIF: 2.2

Spergen-Warsaw Fm. - Aldrich NE

33,778

100

1000

10000

100000

Jan-97

Jan-98

Jan-99

Jan-00

Date

Oil

(Mo

nth

ly)

100

1000

10000

100000

Oil

(Cu

m.)

Horizontal Drilling in KansasCase Histories - Spergen-Warsaw Formation

Horizontal Drilling in KansasCase Histories - St. Louis Formation

Mississippian St Louis FormationHorizontal - Vertical Productivity Comparison

50,586

8,87113,407

100

1,000

10,000

100,000

Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

McHargue Lease Mnthly. RateMcHargue Lease CumulativeAvg. Offsetting Well Mnthly. RateAvg. Offsetting Well Cumulative

Drill Horizontal Lateral in St. Louis Formation

PIF: 3.1

Horizontal Drilling in KansasCase Histories - St. Louis Formation

St. Louis Fm. - Shuck

3106

73135

100

1000

10000

100000

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Date

Oil

(Mo

nth

ly)

100

1000

10000

100000

Oil

(Cu

m.)

Horizontal Drilling in KansasCase Histories - St. Louis Formation

Horizontal Drilling in KansasCase Histories

City of Liberal C1Comp. 8/20/2000

St. Louis Fm. - City of Liberal

1331

100

1000

10000

100000

Jan-00

Feb-00

Mar-00

Apr-00

May-00

Jun-00

Jul-00

Aug-00

Sep-00

Oct-00

Nov-00

Dec-00

Date

Oil

(Mo

nth

ly)

100

1000

10000

100000

Oil

(Cu

m.)

Horizontal Drilling in KansasCase Histories

Horizontal Drilling in KansasConclusions

Horizontal Wells by Formation

0

2

4

6

8

10

Fre

qu

en

cy

Horizontal Drilling Activity by Yearin

Kansas and Canada

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Year

We

lls

Dri

lle

d i

n C

an

ad

a

0

2

4

6

8

10

12

14

16

18

20

We

lls

Dri

lle

d i

n K

an

sa

s

Canada

Kansas

Horizontal Drilling in KansasConclusions

Currently a Mixed Bag of Successes and Failures Most Horizontal Candidates not Properly

Screened and Completed Many Good Candidates not yet Tested

Thin Beds in Lansing-Kansas City EOR in Multiple Reservoirs SAG-D Thermal in Cherokee Sands of SE Kansas

Still not Far Up the Learning Curve

Horizontal Drilling in KansasConclusions

Horizontal Drilling in KansasAcknowledgements

Kansas Corporation CommissionConservation Division

Dave WilliamsDonna Dill