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First is an emerging Mid-continent shale play called Cana. Named for Canadian county in Oklahoma, the Cana play targets the deep Woodford Shale down in the Anadarko Basin. Devon is the largest leaseholder in the play with 112,000 net acres located in Canadian Blaine and Kettle (ph) Counties in West Central Oklahoma.
Although the shale and the clean-up play is the same shale formation found in the Oklahoma basin and Eastern Oklahoma, there are some important differences. The shale in the Cana play is found at greater depths ranging from 11,500 feet to 14,500 feet or an average about 5000 feet deeper than the shale found in Eastern Oklahoma.
The higher pressures at these depths result in greater storage capacity in the reservoir. Initial gas in place estimates for the Cana Woodford indicate upwards of 200 Bcf per square mile, with recovery factors expected to be similar to those found in the best shale plays in the country.
This gives us net risk potential on our existing acreage position in Cana of 4 trillion cubic feet equivalents. We drilled our first horizontal well in the Cana play about 18 months ago and now have completed 10 operated wells in the play including seven long lateral horizontals.
Initial well results indicate average ultimate recoveries in excess of 6 Bcf per well. In fact, four of the long lateral wells where we have significant production history have estimated ultimate recoveries in excess of 8 Bcf per well. We have been de-risking our Cana acreage and perfecting our completions and have achieved repeatable commercial results.
As we move into full scale development, drilling and completion costs should average less than $9 million per well based on the current cost environment. As we continue to optimize drilling and completion techniques and apply practices as we perfected through the thousands of successful wells in the Barnett Shale, we believe we can reduce well costs and further enhance per well recoveries.
Adding to the appeal of Cana play is the liquids rich gas with up to 1300 MMBtu per Mcf. Each development plans will likely include building up processing facility to capture additional value, just as we have done in the Barnett and the Oklahoma Woodford.
In 2009, we plan to drill approximately 27 operated horizontal Cana wells with a four rig program. We also have acquired 3D seismic over most of the play area, and we'll require acquire seismic over the remaining acreage during 2009 to further evaluate and de-risk the play.
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Blacksmith wrote:keep rockman working.
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