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>> Texanna Coal Bed Methane
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Texanna Coal Bed Methane
Project
Bonanza Resources has acquired a 25% working interest in the Texanna Coal Bed Methane Project located in the McIntosh County of Eastern Oklahoma. The Texanna project is positioned in the shallow part of the Arkoma Basin. The Company owns a 25% Working Interest with a 18.75% Net Revenue Interest covering 3,800 acres gross. Full infrastructure, pipeline, and compression station runs through Bonanza'a acreage. One key point in Bonanza's decision to acquire an interest in the Texanna project was the very low dewatering requirements. This allows for potentially more immediate production in an environmentally sound location.
The Hartshorne Coal at approximately 1,500 feet is the primary objective with the Booch Channel sand being a secondary possibility at a depth of 1,300 feet. A minimum of 22 wells are to be drilled on 160 acre spacing at the end of 2005 through 2006, with additional wells to be drilled on 80 acres later. Reserves per well are estimated to be 400 - 500,000 Million Cubic Feet of Gas Per Well at an average estimated cost for a drilled and completed well to be $100,000.00 per well
ARKOMA BASIN
The 13,500 square mile Arkoma basin is bounded structurally on the north by the Ozark Dome, on the west by the Central Oklahoma platform and Seminole uplift, and on the south by the Ouachita overthrust belt. Principal coalbeds occur (in ascending order) in the Hartshorne Formation (Sandstone) and in the McAlester, Savanna, and Boggy Formations (all Middle Pennsylvanian). Coal rank increases across the basin from medium- and high- volatile bituminous in the west, to low-volatile bituminous in the center, to anthracite in the east. The Upper and Lower Hartshorne coals (which coalesce northward into one bed) are the principal coalbed methane targets because of their high mine-methane emission rates and desorbed gas contents of 200 to 672 CF/T, among the highest in the United States. Using average gas contents of 200 to 450 CF/T, Rieke and Kirr (1984) estimated the potential coalbed methane resource at 1.58 to 3.55 TCF in place.
Targeted coalbed methane production was first achieved by Bear Production Company in Haskell County, Oklahoma in May 1989. The 3 to 9 foot thick Hartshorne coal is the primary exploration target. Coal depths generally are 600 to 1,400 ft, although some seams have been downfolded deeper than 5,000 ft. According to operators, high permeability has been measured in the Hartshorne coal --- 3 md from laboratory core tests, 10 md from in situ pressure-transient analysis, and 30 md inferred from hydraulic stimulation pressure data. Despite the substantial permeability, water production is low, indicating that the coal seams do not act as aquifers.
Wells generally are cased, hydraulically stimulated and usually completed open hole. Most Hartshorne coalbed wells have been drilled on structural highs, which reportedly help minimize water production (less than 0.5 BWPD) and disposal costs. More recently wells drilled in structural lows have encountered water-saturated coals that upon initial dewatering yield 10 to 50 BWPD with 15 to 30 MCFD. This production level suggests that favorable permeability exists within structural lows as well as highs. Operators anticipate that gas production will increase substantially as the coal reservoirs are progressively dewatered.
There were 2,179 CBM completions (865 from the Arkoma Basin) in Oklahoma from 1988 through 2002.
IP rates were from a trace to 2.3 MMcfd (average 128 Mcfd) from 726 wells in the Arkoma Basin. The greatest CBM potential was from 153 horizontal CBM wells in the Hartshorne coal with IP rates from 15 to 2,300 Mcfd (average 418 Mcfd). Of 222 wells having an IP T100 Mcfd, 125 are horizontal CBM wells with lateral lengths of 526 to 3,173 ft.
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