Some of the most sought-after oil drilling locations in the US are in Oklahoma. One factor is that these areas have highly developed oil and gas infrastructure, providing transportation cost savings. The maturity of the oil & gas industry in Oklahoma and its proximity to the nationally significant distribution hub in Cushing, Oklahoma allow producers to continue to increase output using the state’s existing takeaway capacity. However, the main reason the plays in Oklahoma are so attractive has to do with their geology. Not only do they possess strong individual well initial production (IP) rates and competitive drilling costs, these oil fields feature stacked formations. Stacked formations allow operators to target pay zones at multiple depths for resources, enabling the exploitation of more fossil fuels from the same surface acreage. The SCOOP STACK areas are a key production element of the larger Anadarko Region and the EIA forecasts production in this Region to grow to 500,00 barrels of oil per day (bpd) by the end of 2018, an increase of over 100,000 bpd from just 5 years ago.
The STACK (Sooner Trend Anadarko Canadian Kingfisher) lies in the Anadarko Basin and is the most promising play in the state. The Woodford Shale is one of the best known and most drilled formations in this area, but the play also includes promising formations like the Chester, Hunton, Meramec, Osage, and Oswego, stacked on top of one another. The Meramec, in particular, is being heavily drilled as a result of some additional unique attributes. The formation features over-pressured oil with low water content, creating high IP rates with lower costs associated with water disposal.
The SCOOP (South Central Oklahoma Oil Province), like the STACK, lies in the Anadarko Basin, adjacent to and southeast of the popular STACK play. It emerged a year or two earlier than the STACK, and possesses some of the same formations, including the Hunton and Woodford. Additionally, the SCOOP is layered with the Caney, Hoxbar, and Springer formations. While the Woodford Shale is historically the most drilled pay zone, the Springer Shale is seeing increased attention as oil and gas companies continue to drill and complete robust wells. The Springer has produced promising early results in terms of IP rates and estimate ultimate recovery.