GRADY COUNTY —
Interest in energy excavation in Grady County continues to rise, after Tulsa based UNIT Corporation released an earnings call transcript detailing the company's local work.
During the call, Geologic Manager Brad Guidry detailed the company's work in their newest oil play, the SOHOT (Southern Oklahoma Hoxbar Oil Trend).
Essentially mimicking the geographic region of the SCOOP, UNIT's SOHOT is primed to be a massive producer for the company, according to Guidry's comments during the call.
"Its formation is very strong, just to have an oil well flowing at those rates (950 barrels of oil equivalent per day) over a 30, 40 day period is pretty incredible," he said.
UNIT's primary focus is in southwestern Grady County,. near the Cement area. Guidry said the Hoxbar is a Pennsylvanian sand/shale sequence. that's approximately 2,000 feet thick, containing four to six stacked sand benches that could be productive.
There is one UNIT rig drilling in the play, but Guidry said plans are to add two more in June.
"The capital drilling budget in this area for '14 has been increased approximately 49 percent to $82 million," he said.
There are approximately 50,560 gross acres and 12,810 net acres in this area available for drilling, according to Guidry.
The first well has been so profitable that Guidry said money has been reallocated from other plays to fund expansion in the SOHOT. A reduction of $41 million is being reallocated from UNIT's interests in the Mississippian play to their work in the SOHOT and Granite Wash areas.
"I mean, there is no question. It's early on in the state of this," Guidry said. "…There is no question the well looks very strong. We are very comfortable in the range we are looking at."