G. Alan Petzet
Exploration Editor
One of the most active operators in the Cretaceous Austin chalk trend in Louisiana is pressing operations there.
Chesapeake Energy Corp., Oklahoma City, is directing attention to the chalk from East Texas as far east as Livingston Parish in southeast Louisiana. It also plans to begin evaluating the deeper Cretaceous Tuscaloosa in some of its wells.
The company, a veteran of Austin chalk horizontal drilling in Texas, only recently established its first production from the formation in Louisiana (OGJ, Apr. 29, 1996, p. 15).
Chesapeake's aggressive Louisiana program is directed at exploratory and development locations. It had three rigs running in the play in late July and planned to add three more this month and one rig every other month through yearend. At least two wells will test Austin chalk and Tuscaloosa.
It also reached agreement in principle with another active trend player, Union Pacific Resources, to acquire a 15% interest in UPR's proposed 100 MMcfd cryogenic gas processing plant serving Masters Creek field in Rapides Parish.
Evolving operations
Chesapeake divided its 1 million net acres of leasehold into six project areas.
From west to east they are South Brookeland in Texas and Leesville, Masters Creek, St. Landry, Pointe Coupee, and Livingston in Louisiana.
The company plans to spud at least one well in each area by yearend 1996.
Chesapeake will dedicate part of its Masters Creek leasehold to the processing plant and pay its proportionate share of the estimated $40-50 million cost of the plant. The transaction will increase wellhead netback pricing, the company said.
Chesapeake is continuing its discussions and negotiations with several other gas processing and pipeline companies on more Louisiana trend gas infrastructure projects.
Well details
Chesapeake started sales June 30 from the 7-1 James well, in 7-1s-2w, Masters Creek field, its first well in the Louisiana trend.
The downdip Austin chalk lateral averaged 1,500 b/d of oil and 7 MMcfd of gas in its first 2 weeks of production.
Combined production from the updip and downdip laterals increased to 2,600 b/d of oil and 10 MMcfd of gas, and through July 24 the well produced 47,000 bbl of oil and 200 MMcf of gas.
Chesapeake's 9-1 Cloud, in 9-1s-3w, Masters Creek field, flowed 2,200 b/d of oil and 15 MMcfd of gas and is to start producing next month.
The 31-1 Lyles, in 31-1n-1e, Rapides Parish, a wildcat on a 25,000 acre block 12 miles east of the James well, will be tested in 30-60 days after production and water handling facilities are installed. It is unlikely to be as good a well as the James and Cloud, the company said.
Chesapeake was building the curved part of a horizontal hole in late July at the 33-1 Rice-Land Lumber, in 33-3s-11w, Beauregard Parish, a rank wildcat in the trend 50 miles west of Masters Creek field.
Another exploratory test, the 25-1 Lawton, in 25-1n-5w, Vernon Parish, 13 miles west of the James well, cut encouraging oil and gas shows in the downdip lateral. An updip lateral was to be drilled and production to begin in September or October.
Chesapeake was drilling the Lord 19-1 and Martin 11-1 development wells in Masters Creek field.
Farther west in the trend, Chesapeake is encouraged by initial drilling results in its South Navasota River area, where its first four wells in downdip Giddings field are producing a combined 37 MMcfd of gas from Cretaceous Austin chalk.
The company has drilled 78 wells in its Navasota River area, 25 wells in the Independence area, and four wells at South Navasota. It employs three rigs at Navasota River, three at South Navasota, and two at Independence.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
