By Adam Wilmoth
June 2, 2018
Goetz Schuppan said he already has lost 15 older, vertical oil and natural gas wells because of nearby horizontal drilling activity, and he is preparing for much more damage in the near future.
Schuppan is president of Hennessey-based Singer Oil Co., which operates older wells in Kingfisher, Blaine and Garfield counties in the heart of the booming STACK play.
“So far, operators have been putting in one horizontal well per section. Now they’re putting in eight or nine more wells on the same section,” Schuppan said. “Some of our wells that survived before will not survive that kind of onslaught.”
Schuppan spoke Friday at the inaugural annual meeting of the Oklahoma Energy Producers Alliance, a group formed to represent the state’s vertical well operators, which tend to be small or family-owned companies. The group has grown to more than 300 members, most of whom attended Friday’s meeting.
Schuppan blames hydraulic fracturing on nearby new horizontal wells for flooding his decades-old vertical wells with high pressures and large amounts of water. In at least two cases, water and pressure from the nearby horizontal well caused Schuppan’s production storage tank to overflow.
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Oklahoma State University research concludes that tax incentives have had no effect on Oklahoma drilling activity.
“In this paper, we build on this existing literature by examining whether Oklahoma’s severance tax reduction has led to disparate effects for horizontal versus conventional drilling as compared with its neighboring states. These states, particularly Texas, share a similar oil and gas resource potential, which we will use in this paper in order to isolate the effect of the tax policy on development from differences in development due to resource disparities. Our findings suggest that the Oklahoma tax exemption has not increased horizontal drilling activity.” ~excerpt from the study
Read the entire study here. http://bit.ly/2ErwujI
Here are a few of the decline curves plus the bottom hole pressure survey that shows the actual hit in real time. The well with the pressure survey (Wakeman) actually got “bumped” (our term) from a November, 2015 frac that caused a loss in oil production (30 BOPM to 5 BOPM) (See decline curve), then “hit” in May, 2016 which killed it. It has partially recovered.
The King-Vieth well was just hit again by another frac, so May oil and gas will be down and water up.
The Perdue 17-2 has seen an increase in production due to the hit. But, as noted, the expenses have skyrocketed due to the frac hit (We had frac sand in the pump the last time it was pulled).
Steve Altman – Kingfisher County
Below are links to documents of the decline curve and the other evidence of loss of production because of horizontal frac jobs: