Granite Wash

SM Energy To Drop Rig In Granite Wash

SM Energy (SM) has a small Granite Wash development program and reported that during the second quarter of 2012, it completed five wells utilizing a three rig program.   The company is targeting the Marmaton formation and plans to drop one rig at the end of September 2012.

SM Energy blamed low prices for natural gas liquids for the decision:

“If you look at the Granite Wash recently, the NGL prices up there are poor. And what we've done is we've looked at it, but we really want to -- we need to continue to high-grade this program to make sure that we're making the kind of returns that we want to make.”

SM Energy has completed seven wells in 2012 in the Granite Wash and in addition to the Marmaton has targeted the Hogshooter Wash.

Cabot Oil and Gas - Granite Wash Update - Third Quarter of 2011

Cabot Oil and Gas (COG) reported an update on its operations in the Granite Wash during the third quarter of 2011, where the company has 61,000 net acres prospective for the Marmaton Wash.

Cabot Oil and Gas participated in seven non operated wells into the Marmaton Wash in Beaver County, Oklahoma, during the third quarter of 2011.  The company reported peak twenty four hour production rates ranging from 589 to 1,338 barrels of oil equivalent (BOE) per day.

Cabot Oil and Gas said that average cost to drill and complete a Marmaton well was under $3 million per well.

EOG Resources Reports Three Marmaton Wash Completions For The Second Quarter of 2011

EOG Resources (EOG) drilled and completed three successful wells into the Marmaton Wash during the second quarter of 2011.  The company has 34,000 net acres under lease that are prospective for this formation, which produces mostly crude oil.

Brown 18 #1VH - 620 barrels of oil and 700,000 cubic feet of natural gas per day.

Opal 31 #1H – 1,312 barrels of oil and 2.6 million cubic feet of natural gas per day.

Fischer 12 #1VH – 509 barrels of oil per day along with high levels of natural gas.

EOG Resources is conducting a seismic program to delineate the extent of the Marmaton and Granite Wash on its acreage. The company is initially focused on leasehold in Ellis County, Oklahoma.