Oklahoma Weekly O&G Report - 05/14/18



Note: Don’t be surprised if you see a few changes in our charts below. That’s because we’ve edited our pooling, increased density, spacing, and location exception charts to depict the differences in number of apps and orders filed. While we had previously shown these data sets as a total, we also felt it important to depict separately the number of apps and orders filed.

Oklahoma Leasing Activity

• There was a large uptick in Continental’s leasing activity, putting them once again as the top weekly lessee in Oklahoma.
• The Wall Street Journal reported Monday morning on the rise of basins outside of the Permian, highlighting the increasing value in the SCOOP and STACK.
• We recently took a look at the STACK, predicting some of the hottest positions in this re-emerging area.

Oklahoma Spacing Applications

• Cimarex Energy is currently spacing the Woodford formation (no surprise given their May corporate presentation)

• The majority of spacing activity is taking taking place in Blaine County, which is located in the western portion of the STACK.

Oklahoma Completion Filings

• Completions in Oklahoma continue to be focused in the STACK.  

• This week we took a deeper look at Newfield: in last week’s Oklahoma activity report, we talked about Newfield’s increased density filings and future infield drilling activity. For a more holistic look at their activity, this week we looked at their completion data, from both their first quarter earnings report and from Atla (hint, look at the Velta June Lease). Atla users, contact your CSM to find out how to map this acreage!

Oklahoma Pooling Applications

• Trinity Operating Pooling activity is focused in the Arkoma Basin.

Oklahoma Intents to Drill

• With oil prices hitting above $70/bbl the STACK remains the most actively drilled in Oklahoma.  

• The top 3 operators filing intents to drill in the STACK are Alta Mesa (Oklahoma Energy Acquisitions), Devon Energy and Hinkle Oil & Gas.

Oklahoma Transfer Activity

• Transfer activity is focused on Chesapeake Energy’s recent divestiture of assets in the Mississippi Lime. BCE Mach, a partnership between Bayou City Energy Management and Mach Resources, acquired assets in Woods and Alfalfa Counties.  
• This acquisition highlights Chesapeake’s continued efforts to decrease debt load and focus on new plays through divestiture of assets.

Oklahoma Location Exception

Oklahoma Increased Density Filings

• Roan Resources, a spin off from Linn Energy, has filed increased densities in the Merge and targeting the Woodford Formation.