Texas: Allied Energy set to drill in Giddings Field
Allied Energy begins 'Giddings Field' dig
Oil and gas explorer Allied Energy said its wholly-owned subsidiary, Allied Operating Texas has built 2.2 miles of road and the drill-site area in preparation of drilling its first horizontal test area in the historic "Giddings Field Area" of East Texas.
The proposed horizontal area is a direct proved undeveloped offset to Apache's Butaud-1 well in Grimes County, Texas that was completed in March of last year and tested and reported at 4833 thousand cubic feet per day of gas and 30 barrels of condensate per day.
As per its production records, the Butaud-1 continues to produce from a single lateral at an estimated and reported daily rate approaching 2500 Mcfd of gas and 30 barrels of condensate, the company said in a statement.
The proposed plans for an initial horizontal test well are to drill a long length single lateral and/or two opposing horizontal laterals. Although risks do exist and the Company can make no assurances, this long length single lateral and/or dual-lateral strategy could enhance reserve and production potential for this location.
As reported by the Texas Railroad Commission (TRC), the nearby Chesapeake Upchurch-1 horizontal well in a similar setting was completed for production in 1992 and initially tested at 6200 Mcfpd and produced 3.6 Bcfpd and more than 147,000 barrels of condensate in less than five years from a single lateral.
Per the October production reports as reported by the TRC, the offsetting Apache producing wells in the field area have combined produced more than 1.5 billion cubic feet of gas and 18,000 barrels of condensate over an average period of seven months.
Allied has acquired substantial working interest position in the initial test area and in the project area which potentially consists of thousands of acres in the prolific Austin Chalk, Buda and Georgetown horizontal trends.
The company said that drilling operations will begin in the next several weeks.