Abstract: Exploitation Strategies and their Economic Applications in the Giant Red Oak Gas Field, Oklahoma, USA
Schlaefer Jill, Jordan Smyth, Antonio Vizurraga
Red Oak field is a giant gas field located in the Arkoma basin of Eastern Oklahoma, USA with recoverable reserves of 73.6 BCM (2.6 TCF). Maximizing economic return from this field requires forward-looking strategic planning and continuous reassessment of economic and operational impacts.
Post-project economic and technical analyses confirm that this strategy for maturing fields effectively reduces technical and economic risk associated with infill drilling and field development. Accuracy of cost, reserve and financial performance predictions provided concrete measurement and feedback for continuous improvement of Amoco's Red Oak field strategy.
A strategy was formulated to maximize fieldwide productivity and define an economically prudent field development plan. Engineering field data and performance forecasts were integrated into the reservoir characterization model. This geo-technical model created the basis for the successful application for U.S. Federal Tight Gas Sandstone Designation in 1992 reducing not taxation on produced gas from low permeability (<0.1md) reservoirs and resulting in substantial tax credit savings.
The multi-disciplinary Red Oak team also targeted operational cost reduction. Integrated teams using process re-engineering eliminated or redesigned many costly steps. Strategic planning and post-drilling appraisals provided focus which allowed predictive scheduling of materials, optimization of compression and facilities capacity to trim costs 15% and boost production 0.5 MMCMd (20 MMcfd). The planning and forward looking appraisals provide flexibility for uncertain future economic robust scenarios.
The multi-disciplinary strategy proved robust enough to fired a 47 km2 (18 mi2) 3D seismic program to provide a detailed structural framework in which reservoir targeting could be accomplished with minimal economic risk.
AAPG Search and Discovery Article #90956©1995 AAPG International Convention and Exposition Meeting, Nice, France