In-Basin Sand Cost-Savings in Oklahoma’s Anadarko Basin
The adoption of in-basin sand has been wide-scale and swift––and for good reason. In-basin sand delivers significant cost savings, which can have a profound effect on a well’s economic potential. For SCOOP/STACK/Cana-Woodford producers, including Black Mountain Sand’s Watonga White™ sand in their completion designs can deliver upwards of 35 percent in savings in proppant costs per well.
Northern White & Watonga White: Head-to-Head
Northern White | Watonga White™ |
Pricing Breakdown | |
$100 Total Estimated Per Ton | $65 Total Estimated Per Ton |
Cost Per Well (5,750 average tons per completion) | |
$575,000 per well | $373,750 per wel |
35% cost savings per well | |
Availability | |
Rail-dependent | Sand is produced continually on property and is fed directly from the dryers into the silos for immediate deployment to the wellsite. |
Subject to inventory depletion with potential 7 to 10-day lag time between shipments | Loadout system is configured to load twenty-three tons of sand in 2.5 minutes with a total average truck load-in time, mine-gate to mine-gate, of ten minutes or less. |
Supply Chain Management | |
Rail + Transload + Last Mile | Last Mile only |
~850 miles | 125 miles or less |
Watonga White™ Technical Specifications
Centrally located in Fay, Oklahoma, Black Mountain Sand’s Mid-Con facility serves Anadarko Basin producers in the SCOOP/STACK Cana-Woodford plays:
- Blaine County
- Caddo County
- Canadian County
- Carter County
- Custer County
- Dewey County
- Garvin County
- Grady County
- Kingfisher County
- Love County
- McClain County
- Stephens County
Anadarko Basin Emergence
Much like Texas, Oklahoma is experiencing an energy renaissance with new oil production records being made due to production gains primarily in the SCOOP/STACK shale plays in the Anadarko Basin. SCOOP stands for South-Central Oklahoma Oil Province. STACK gets its name from an abbreviated reference to its geographic boundaries – Sooner Trend, Anadarko (basin), Canadian and Kingfisher (counties) and includes the birthplace of horizontal drilling in the region, the Cana-Woodford Shale. Both the SCOOP and STACK feature multiple stacked geologic horizons with significant liquids potential.
As modern horizontal drilling and fracing techniques continue to be refined, further gains are expected. In fact, market insiders peg the Anadarko Basin to emerge as the most prolific onshore play outside of the Permian Basin. This prediction comes as no surprise considering the area is rich in hydrocarbons with an estimated 16 billion barrels of oil and over 200 trillion cubic feet of natural gas. By what is surprising, is the estimated amount of future drilling and completion activity the basin can sustain.
According to John Roberts, IHS Markit executive director for global subsurface operations: “As it stands now, only about 20 percent of the Anadarko Basin’s STACK ‘sweet-spot’ locations have been drilled or developed. The play is still in its early stages of unconventional development. We can easily envision an additional 4,000 to 5,000 horizontal wells drilled.”
A recent market analysis by IHS Markit reports an average proppant volume of 5,750 tons per horizontal well completed in the Anadarko Basin. For an operator with a 20-well completion package, a switch to in-basin sand represents CapEx savings potential of over $4,000,000.
Call today for Sales: 817-529-7263 (SAND)
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