Petroleum Technology Digest: Horizontal drilling increases production in a reef formation ///

In 1992, SOMOCO Inc. – a Michigan-based company – initially developed the Novi 29 Niagaran reef by drilling a 35° directional discovery well into the southeast corner of the reef. Some eight years later, to increase production and access additional reserves, the well was re-entered, drilling a 417-ft horizontal lateral with a second 272-ft horizontal spur. For a re-entry cost of only $175,000, production more than tripled and estimated ultimate recoverable reserves increased by 233,000 barrels of oil and 606 MMcf. A second horizontal well was subsequently drilled into the north end of the reef. Combined, the incremental reserves attributed to horizontal development are estimated at 283,000 barrels of oil and 1,240 MMcf.

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