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  • chrxind chrxind Jan 15, 2013 8:32 PM Flag

    Miller Energy Completes Unprecedented Horizontal Well in Tennessee

    The CPP-H-1 well is the first successful horizontal well drilled and completed in the Mississippian Age Fort Payne formation in North America.

    The well tested at a restricted rate of 487 BOE per day on a ¾" choke. The rate was restricted in order to conserve as much reservoir energy as possible. A breakdown of the initial production test consists of 365 BOPD, 730 MCFGPD, and 0 BWPD. The company plans to begin producing the well as soon as Miller Energy Receives EPA permission to begin reinjecting the produced gas in order to maintain reservoir pressure. The Fort Payne reservoirs are solution gas drive reservoirs, and management feels that it is critical to maintain reservoir pressure in order to maximize oil production.

    Based on the initial flow tests, the company expects this will be a very strong and commercially successful well. Although this well represents an unprecedented achievement, based on what is known about the formation, the geology and the initial reservoir pressure, Miller expects that the well will produce in the range of 200 to 225 BOEPD once reinjection has started and full production has begun. The company plans to provide regular updates to the public as more results come in on this well.

    Miller has also recently spudded its second Fort Payne well, and expects similar results from that new well, once complete. Two additional horizontal well sites in Tennessee have been designated for development in the near term. At present, the company has identified 25 sites on which similar horizontal wells may be developed on approximately 40,000 acres held by Miller under lease or by production in the state. The company has previously recovered approximately 9% of the oil believed to exist on its acreage and expects that future horizontal wells will significantly increase this recovery factor.

    "The successful development of CPP-H-1 is a game changer for oil production in the State of Tennessee and the whole Appalachian Basin," said Scott M. Boruff, Miller's CEO. "We have been very excited for a very long time about the prospects for our Tennessee assets, and we are thrilled that we can finally share that excitement with the world at large. I have to thank David Wright, our EVP of Tennessee operations, along with our geologists, Dr. Gary Bible and John Miller, who worked out the details of our horizontal drilling strategy in Tennessee. Their hard work and insight have given us a new avenue of growth, one which our company is uniquely positioned to take advantage of."

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    • thanks chrx. good info. it appears the ft payne formation may run into central kentucky. becasue I like to invest in mlp's I am trying to determine if it bbep acreage in central kentuck overlays the ft payne

      • 1 Reply to moneyonomics
      • money;

        did a little digging and found some info that may be useful to you:

        From the USGS;

        The Fort Payne Formation and the Muldraugh and Renfro Members of the Borden Formation crop out over much of south-central Kentucky. The Fort Payne Formation occurs in the subsurface below most of the western Kentucky coal field and a small portion of the Cumberland Plateau along the Tennessee border. Outcrops of the Fort Payne Formation are also present along the Tennessee and Cumberland Rivers in western Kentucky, and the Fort Payne Chert is recognized along the Pine Mountain overthrust in Whitley and Bell Counties, where it is mapped with other Mississippian Formations. The Muldraugh Member occurs in the subsurface along the Ohio River in Meade County and along the Kentucky-Tennessee line in McCreary and Whitley Counties. The Renfro Member occurs in the subsurface in eastern Kentucky.

        The Fort Payne Formation is as much as 660 ft thick in south-central and western Kentucky, where it overlies the Chattanooga Shale. Gray to black dolomitic siltstone and cherty, dolomitic limestone of the Fort Payne were deposited as basin fill adjacent to and southeast of the Borden deltaic sediments. The Fort Payne thins northward to 150 to 300 ft in central Kentucky, where it is more silty, shaly, and dolomitic and less siliceous. Two northwest-trending carbonate bodies, composed primarily of crinoid debris, occur within the Fort Payne (map units "Is" on sheet 2, including the Cane Valley Limestone Member of Fort Payne Formation as shown on the "Generalized Stratigraphic Cross Section of the Borden and Fort Payne Formations" at the top of sheet 1). These crossbedded crinoidal limestones drop stratigraphically to the southwest. North and east of these limestones a calcareous sandstone body, the Knifley Sandstone Member of the Fort Payne Formation, trends subparallel to the limestone bodies and also drops in the section to the southwest (shown as map unit "k" on sheet 2, and in the "Generalized Stratigraphic Cross Section" on sheet 1). The Knifley Sandstone and Cane Valley Limestone Members occur at or just southwest of the Borden prodelta front, where the Fort Payne Formation thins as it onlaps the Borden elastics (see map and diagram).

        Also found this;

        Mississippian Age Fort Payne formation
        From KY-TENN Oil;

        Presentation to the Tennessee Oil and Gas Association by the TN Geology Department
        Monteagle Limestone - Mississippian age, consisting of 200-250 feet of massive limestone with shale beds. It contains chert and has fossil-fragmental and oolitic porous zones. Porosity is vulgar and normally occurs in 5 to 30 feet near the middle of the formation. It is a consistent oil and gas producing formation. The average barrels of recoverable reserves is in the 20,000 barrels per well range. Most petroleum engineers assign 60 MMCF gas to Monteagle wells. This is based on volumetric calculations. However, many Monteagle gas wells have produced five times this amount of gas due to natural fracturing. Other Monteagle gas wells in the area are still producing commercial quantities of gas after 30 years.

        St. Louis Limestone - A Mississippian age limestone formation, usually about 80 feet thick. Will produce oil when porous zones are present, but this is seldom seen in this area.
        Fort Payne Limestone - This Mississippian age formation consists of massive limestone with considerable chert. It is also fossiliferous, especially in crinoids fragments. The thickness is 10 to 150 feet. It is a very prolific producer of oil with a small amount of associated gas cap. The formation produces little or no water in associations with the hydrocarbons. The porous zones are called reefs and range in thickness from 5 to 30 feet. They appear to be developed in a northeast-southwest direction along terrace or minor anticlinal folds.

        The generally accepted standard for primary recoverable reserves from a Fort Payne well is 50,000 to 60,000 barrels, although some wells have produced more than 200,000 barrels and are still producing.

        In fields where KTO will be drilling, there are wells that have produced oil and/or gas for nearly thirty years and are still commercial wells. Several came in flowing at a rate of 1,200 barrels of oil a day and sustained 100 barrels or more for than a year before production stabilized and gradually began to decline. Several wells produced more than 200,000 barrels of oil but 30,000 to 60,000 barrels during a well's lifetime is closer to the norm.

        Chattanooga Shale - This Devonian age formation is usually 30 to 60 feet thick and lies just below the Fort Payne. The Chattanooga shale is jet black with minor gray shales and small amounts of pyrite. It is quite radioactive and has a distinct signature on the Gamma Ray geophysical logs.
        To the north in Kentucky, this shale thickens to several thousand feet and is the source of the majority of gas production in eastern Kentucky. It is characterized by relative low flow rates with large recoverable reserves over a long period of time. Shale wells have been reported to have produced for more than 100 years.

        On the Plateau, while a few Chattanooga Shale wells do produce gas naturally, it is only recently becoming a drilling target in that area. The relatively thin Chattanooga shale section in Tennessee was not considered an economically viable producing formation.
        New stimulation techniques and high natural gas prices have combined to make the Chattanooga Shale an attractive drilling target. Production rates of from 30 to 70 mcf of natural gas have been achieved through this type of stimulation.

        In addition to new wells that will be drilled into the shale, KTO has more than 100 shut in or producing gas wells in which the Chattanooga Shale can be stimulated.
        Trenton, Sunnybrook, Stones River - These Middle Ordovician formations consist of thick-bedded limestone with minor interbedded shales. The combined thickness can be up to 1,500 feet. Some porous zones appear to consist of fractures with secondary crystallation. Often there are numerous sections of porosity 10 to 20 feet thick.

        These Ordovician formations are the major source of oil off the Plateau to the west, where wells of up to 1,700 barrels of oil a day have been discovered at depths of less than 2,000 feet.
        These wells then settle down to sustained production of 100 BOD for a year or more before dropping off to a few barrels a day. On the Plateau, for the most part, these formations have not been tested, as the primary target has been the Monteagle and Fort Payne formations. Recent increases in oil prices has sparked interest in considering drilling deeper to test these formations.
        Knox - This lower Ordovician formation is a massive, dolomitic limestone, which has seldom been completely penetrated. The thickness is in excess of 2,000 feet. The top of the Knox is a regional unconformity with the porosity and permeability related to surface leachings. There is no know oil or gas production from Knox wells in this area of interest. However, as the Knox produces from shallower depths to the West and deeper depths to the East makes it a possibility for future exploration in this area.

        The faulting in this area, mentioned earlier, faulting likely increases in magnitude with depth, which should increase the possibility of greater structural closure on the deeper formations. The major deeper zones, which are virtually untested in this area, are the Rose Run (Middle Knox) at about 5,000 feet, the Copper Ridge at about 6,400 feet and the Roane Sand at 8,200 feet. The basement complex is expected at 8,500 to 10,000 feet.

        Summary
        While interest increases in deeper drilling to test the Ordovician age formations, the Mississippian age reservoirs (Monteagle and Fort Payne) offer the greatest opportunity for success. The high hit ratio in the blanket Monteagle formation and the more elusive but prolific Fort Payne formation provides significant oil and gas development opportunities with known reserves and the infrastructure in place to produce the hydrocarbons.

        In addition, drilling each Monteagle and Fort Payne well deep enough to expose the entire Chattanooga Shale section significantly increases the potential for additional natural gas production in an economically successful well.

        Also K-8 from Carbon Nat Gas may be helpful; Search "Carbon Natural Gas Co - FORM 8-K - EX-99.1 - March 28, 2012"

 
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