Pennington has filed two additional Austin Chalk production units - Profit Island and Morganza Fields.
RH, wow thanks for pointing out the AF Harmon well. I just checked, that unfracked horizontal well produced 270,000 bbls of oil in the first year! Got to figure a fracked vertical in this same area could tap into that a similar fractured formation and produce those types volumes.
What makes this play (AC Hz Frac Play) interesting is that they are not chasing the natural fractures but instead are trying to tap the matrix O&G in the rock itself, i.e. the reserves that the traditional natural fracture AC play would not have tapped.
This also complicates and adds risk to the play since the operator doesn't want to see their frac stimulation go mostly into open natural fractures but instead be focused on getting into the reservoir matrix and liberating that oil. This is why stimulation additives like diverters are probably being used to minimize the natural frac capture of any stimulation efforts.
Ideally, a good frac'd well will tap into the matrix reservoir as well as possibly "seeing" some historically untapped and O&G charged natural fractures.
And hopefully not some depleted natural fractures that could now be water charged and/or low pressure sinks (both ultra negatives).
Back to Pennington and their recent permits - they may be looking to test the AC in these old vertical wells via perf and frac. If they get decent results, they do two things - start making money from shut in wells plus possibly validate drilling horizontal wells to tap these AC intervals.
Thanks Rock Man. Very informative as usual. How do you think pore pressure factors into the performance of these Pennington wells? I have always heard the saying pressure is your friend. This area is some extremely high PSI readings.
Higher pore pressure will tend to be a good thing in that it will help "push" the O&G from the reservoir into induced fracture systems and the wellbore. Of course, it will also push out associated formation water.
And higher pressure will probably equate to higher D&C costs too.