Osage County, OK
Osage County, OK
Petro River is pursuing its core strategy in this well-known basin, drilling vertical wells in relatively shallow conventional legacy reservoirs using modern 3D seismic surveys. PTRC has acquired 106,000 acres in Osage County in an area that was the focus of a deeper horizontal play—that proved to be uneconomic—and has reprocessed 4650 square miles of 3D to refocus on a shallow (3-4,000 ft.) vertical program. The company is targeting the Mississippian-aged Chat formation and Pennsylvanian-aged formations.
Management projects EUR (estimated ultimate recovery) at 50,000 boe per well.
Pearsonia is a low-cost conventional project surrounded by 800 million barrels of historical production. Petro River plans to drill four vertical wells this year at a cost of $300,000 a well. The Company will drill its first two wells in Q1 2017. Total recoverable resources are projected at 6MM bbls.
The Pearsonia West Concession in Osage County, OK includes 106,500 contiguous acres centered on the structural trend of the Pearsonia-Blackland-Foraker fields. These fields have produced in excess of 20 million barrels of oil through vertical well development. The Company recently initiated the reprocessing of 36 square miles of proprietary 3-D seismic data acquired in two phases in 2007 and 2009. The initial processing has indicated multiple structures with closures ranging from 120 to 1000+ acres.
The stacked and locally productive reservoirs include Arbuckle, Mississippian, Red Fork, Skinner and Marmaton deposits. The new processing will allow for greater imaging of porosity developments within the carbonates and edge resolution of identified and undrilled Pennsylvanian shoestring sand deposits.
The shallow (~3-4,000 feet) nature and low risk drilling environment favors economically profitable, vertical exploitation of resources even at $30/barrel oil prices.
The technical team working the asset has deep experience with the region and has drilled some of the highest performing wells of the past decade, including several of which have opened new fields.
Lower risk conventional drilling in a proven hydrocarbon producing region surrounded by 800 million barrels of historical production.
Petro’s familiarity with its Pearsonia acreage:
- History: The Company has assembled old data, including drill logs.
- Technology. The Company has acquired modern seismic data. We have reprocessed 4650 square miles of 3-D to refocus on a shallow vertical program and locate overlooked traps.
- Expertise: Our technical staff has drilled hundreds of wells in the area. Operating costs are low; a $70,000 dry hole risk.
|Osage County, OK at a Glance|
|Location||Osage County, Oklahoma|
|Size||106,500 gross contiguous acres|
|Working Interest||94% Controlled by Petro River|
|Geophysics||36 sq. miles of existing 3D Seismic data|
|Work Completed||Over 10 Horizontal wells|
|Historical Work||Over 10 Horizontal wells|
|2016 Activity||Reprocessed 4650 acres of 3D Seismic imaging|