The current evaluation disclosed a well-known oil-producing zone under the lease. The proposed 18 well drilling program will also include five of the existing wells to be converted to injection wells. The company will inject water as well as gas and CO2 back into the zone to enhance production. It is estimated that there are 40,000 barrels of recoverable oil under the lease. The first well scheduled to be drilled next week will allow the company to test various injection methodologies.
Production rates in this area range from 2 to 50 barrels of oil per day (BOPD) per well with typical results averaging between 5 and 10 BOPD. Initial flow rates can be higher for a short duration before settling into this range with the quality of crude being excellent (33° to 42° API oil).
Natural gas is the fallback position in this area due to shallow Excello shale that blankets the area as do several methane gas bearing coal seams. As such, natural gas is almost always produced in a well in this area with production rates ranging from 5,000 to 200,000 cubic feet of gas per day (5 to 200 MCFD).
Since most of this gas is produced from coal seams, initial production rates are actually lower and increase over the first few months because coal seams must "dewater," where water in place in the coal seam is brought to the surface, freeing up the gas to begin coming to surface through the well bore.
As a result, a typical scenario would be for a well to produce from a coal seam and after dewatering for about a month to start giving up its natural gas. The flow rate of between 950 to 1050 BTU gas will usually start around 5 MCFD and increases as the water comes off with most wells settling in around 30-50 MCFD. In PTOG’s project area, there is an estimated 98% completion rate and 100% discovery of gas, making it one of the lowest risk exploration areas in the country.
Located in Nowata County, Oklahoma, this project is situated on the Northeastern edge of the Northeast Oklahoma Shelf, which has proven to be prolific in coal bed seams for both methane gas and oil since it was developed beginning in the early 1990s. The dewatering of the existing gas wells will be injected back into the Bartlesville production zone to help facilitate the oil production.
