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Economic Analysis of Mission Canyon Production, 1980-1987, Burke County, North Dakota: ABSTRACT

Authors :
Roger N. Borchert
Guy H. Ausmus
Source :
AAPG Bulletin. 72
Publication Year :
1988
Publisher :
American Association of Petroleum Geologists AAPG/Datapages, 1988.

Abstract

Mission Canyon formation oil pools in central Burke County, North Dakota, were the exploration objective for operators from 1980 to 1987. Area exploration led to the drilling of 309 tests, with successful Mission Canyon completions achieved in 134 of these wells. Spectacular initial potentials, as high as 600 BOPD, were recorded for several wells. Twenty-two Mission Canyon oil fields were discovered in the study area, all characterized by high initial potentials, rapid production decline, and subsequent stabilization at or below economic limit. Of all completion attempts, 33% were commercial ventures and 67% were economic failures. Only three Mission Canyon oil fields were total economic successes - Coteau, South Coteau, and Rival. These fields are neither the largest in well count nor aerial extent. All the producing Mission Canyon formation wells in central Burke County were studied to determine oil reserves required to reach present and historic investment hurdle rates of 25% BFIT. Several economic simulations were constructed to examine value profiles for Mission Canyon development. It was observed that profitability is associated with those wells demonstrating the greatest amount of structural relief across well-defined subsurface noses. High structural relief helped the development of favorable reservoir characteristics. Shallow Charles Formation production,more » present over many of the Mission Canyon oil fields, did not convert uneconomic Mission Canyon development into profitable ventures. The authors recommend that operators involved in central Burke County Mission Canyon exploration use structural relief across subsurface noses as the discriminating factor when selecting prospects, and that management abstain from the development of discoveries demonstrating low structural relief.« less

Details

ISSN :
01491423
Volume :
72
Database :
OpenAIRE
Journal :
AAPG Bulletin
Accession number :
edsair.doi...........97787c8fbe5afe129f9f066fadc8a21d
Full Text :
https://doi.org/10.1306/703c8f65-1707-11d7-8645000102c1865d