Penn Virginia (PVA) reported on its second quarter of 2011 operations in Oklahoma, where the company is working to develop the Granite Wash and other formations.
Penn Virginia drilled five gross or 1.7 net wells into the Granite Wash formation in the South Clinton Field in Washita County, Oklahoma. The company reported that initial production rates from recent wells completed into the Granite Wash produced less than earlier wells in the play. The company said that the reason for this was “the result of a communication issue between wells related to down‐spacing and fracturing.”
Penn Virginia said that due to this issue and a reduction in non operated activity here, the company’s production from the Granite Wash would be 2.7 Bcfe less than expected in 2011.
Penn Virginia still favors the economics of the play and plans to drill 20 gross or 8.7 net wells into the Granite Wash in 2011.
Penn Virginia reported problems with development of the Granite Wash earlier in the year, and ended development at two other prospects.