4
JANUARY 2011 11 The producon history from the Spearfish Formaon (Triassic) in the state is similar to the drilling history of the Bakken Formaon and other unconvenonal reservoirs. Drilling in Boneau County began with a random wildcat, the Zach Brooks Drilling Company - #1 Edwin Berentson (SW¼ SE¼, Sec. 21, T163N, R79W). Drilled and completed in November 1952, this well was the first commercial oil well in Boneau County and the discovery well for Westhope Field. Early wells in the county produced primarily from the Madison Group (Mississippian) but strong oil shows in the overlying Spearfish Formaon suggested that it might also be a target. Subsequent discoveries at Newburg (1955) and South Westhope (1956) fields proved this to be true (fig. 1). Drilling acvity reached record highs from 1957 to 1959 and connued through 1961 in the region as companies acvely pursued the Madison Group and Spearfish Formaon (LeFever and LeFever, 1991). A number of new fields were added at this me (fig. 1). It is interesng to note that markeng the oil in this area was difficult early in the exploraon history of the region. Prior to 1963, producon in the north-central poron of the basin was marketed by rail unl 1963 when the Portal Pipeline was constructed to carry crude to refineries in Minnesota and Wisconsin (Gerhard et al., 1982). A successful waterflood was iniated by Amerada Petroleum Corporaon in 1967 to reverse the gradual decline of producon in Newburg Field. Drilling acvity slowed basinwide from 1966 to 1974 (Gerhard et al., 1982). A discovery by Omega Hydrocarbons Ltd. in June 1980 resulted in renewed acvity when the company recompleted a Madison producer in the Lower Amaranth Formaon (Spearfish Formaon equivalent) in Waskada Field, Manitoba (Barchyn, 1982). This discovery was followed by a significant lease play in north-central North Dakota, but the drilling success rate was variable and the play did not develop as expected. The play in southern Manitoba connued unl 1990 when exploratory drilling became non- economic. Producon from these fields connued with horizontal development drilling coupled with secondary recovery methods. Early in 2008, EOG Resources revisited the Waskada Field area with technology used to explore for the Bakken Formaon in Mountrail County. The applicaon of horizontal drilling in combinaon with The Spearfish Formation – Another Unconventional Target Julie A. LeFever Figure 1. Structure on the top of the Madison unconformity surface. The distribuon of Spearfish Formaon producing oil fields in Boneau County, North Dakota and Canada are also indicated. The fields are colored based on the discovery date (modified from LeFever and LeFever, 1991). Figure 2. Outcrop photograph of red siltstones, sandstone, and mudstones of the Spearfish Formaon taken in the town of Spearfish, South Dakota (wild turkeys for scale).

The Spearfish Formation – Another Unconventional …A discovery by Omega Hydrocarbons Ltd. in June 1980 resulted in renewed activitywhen the company recompleted a Madison producer

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Page 1: The Spearfish Formation – Another Unconventional …A discovery by Omega Hydrocarbons Ltd. in June 1980 resulted in renewed activitywhen the company recompleted a Madison producer

JANUARY 2011 11

TheproductionhistoryfromtheSpearfishFormation(Triassic)inthestateissimilartothedrillinghistoryoftheBakkenFormationandotherunconventionalreservoirs.DrillinginBottineauCountybeganwitharandomwildcat,theZachBrooksDrillingCompany-#1EdwinBerentson(SW¼SE¼,Sec.21,T163N,R79W).Drilledand completed in November 1952, this well was the firstcommercialoilwell inBottineauCountyand thediscoverywellforWesthopeField.EarlywellsinthecountyproducedprimarilyfromtheMadisonGroup(Mississippian)butstrongoilshowsintheoverlyingSpearfishFormationsuggestedthatitmightalsobeatarget. SubsequentdiscoveriesatNewburg (1955)andSouthWesthope(1956)fieldsprovedthistobetrue(fig.1).

Drilling activity reached record highs from 1957 to 1959 andcontinued through 1961 in the region as companies activelypursued theMadison Group and Spearfish Formation (LeFeverandLeFever,1991).Anumberofnewfieldswereaddedatthistime(fig.1).Itisinterestingtonotethatmarketingtheoilinthisareawasdifficultearly in theexplorationhistoryof the region.Prior to 1963, production in the north-central portion of thebasinwasmarketedby rail until1963when thePortalPipelinewas constructed to carry crude to refineries inMinnesota and

Wisconsin (Gerhard et al., 1982). A successfulwaterfloodwasinitiatedbyAmeradaPetroleumCorporationin1967toreversethegradualdeclineofproductioninNewburgField.Drillingactivityslowedbasinwidefrom1966to1974(Gerhardetal.,1982).

AdiscoverybyOmegaHydrocarbonsLtd. in June1980resultedin renewedactivitywhenthecompanyrecompletedaMadisonproducerintheLowerAmaranthFormation(SpearfishFormationequivalent) in Waskada Field, Manitoba (Barchyn, 1982). Thisdiscoverywasfollowedbyasignificantleaseplayinnorth-centralNorthDakota,butthedrillingsuccessratewasvariableandtheplaydidnotdevelopasexpected.TheplayinsouthernManitobacontinued until 1990 when exploratory drilling became non-economic.Productionfromthesefieldscontinuedwithhorizontaldevelopmentdrillingcoupledwithsecondaryrecoverymethods.Earlyin2008,EOGResourcesrevisitedtheWaskadaFieldareawithtechnologyusedtoexplorefortheBakkenFormationinMountrailCounty.Theapplicationofhorizontaldrillingincombinationwith

The Spearfish Formation – Another Unconventional Target

Julie A. LeFever

Figure 1. Structure on the top of theMadison unconformity surface.ThedistributionofSpearfishFormationproducingoilfieldsinBottineauCounty, North Dakota and Canada are also indicated. The fields arecoloredbasedonthediscoverydate(modifiedfromLeFeverandLeFever,1991).

Figure 2. Outcrop photograph of red siltstones, sandstone, andmudstonesof theSpearfishFormationtaken in thetownofSpearfish,SouthDakota(wildturkeysforscale).

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12 GEO NEWS

fracturestimulationresultedinwellsthatproduceexponentiallybetter than traditional vertical wells (Redekop, 2010). TheManitobaPetroleumBranchestimatedthat300wellswouldbedrilledintothelowerAmaranthinthatprovincein2010atacostof$1.5millionperwell.

EOG Resources announced in April 2010 that they hadmovedthe Spearfish play across the border into north-central NorthDakota.Thisprospect,referredtoastheWaskadaSouthField,isconsideredtobeasmallaccumulation(20millionbarrels)withaveryhighrateofreturn(Papa,2010).

SpearfishFormationThe Spearfish Formation was originally described by Darton(1898,1899-1900)forasequenceofredsandyclay,orshalewithanhydritebeds thatoutcrop in theBlacksHillsofSouthDakota(fig. 2). The Spearfish Formation in North Dakota occurs onlyin thesubsurface,andconsistsof threemembers, inascendingorder:theBelfield,thePineSalt,andtheSaude.Theformationispresentoverhalfofthestate,reachesamaximumthicknessof750feet,andisequivalenttotheLowerWatrousinSaskatchewanandtheLowerAmaranthinManitoba.

Only the uppermost member of the Spearfish Formation ispresent in the north-central portion of the state at a depthrangingfrom2,900to3,400feet.TheSpearfishFormationonlapstheMadisonunconformitysurfaceinBottineauCountyandintosouthernManitobawhereitisproductive(fig.3).Thisportionoftheformationoverthestudyareaisa125-to220-foot-thickredbedsequenceconsistingprimarilyofquartzosesandstonesthatare occasionally cemented with anhydrite or having anhydritenodules, siltstones, shales, shaly sandstones, and some thinanhydritebeds (figs.4,and5;Dow,1967;LeFeverandLeFever,1991).

Thesequenceofshales,siltstones,andsandstonesthatcomprisetheSpearfishFormationweredepositedinasubtidaltosupratidalenvironment.Thesandstoneswereprobablyderivedfromcoastaldunesthatwereinundatedbytransgressiveseas.Thereworkingandre-depositionofthesesandsproducedawidespreadsheet-like morphology. Periodic emergence resulted in evaporiticconditionsandextensiveoxidation.Inaddition,aseriesofsubtidalchannelscrosscuttheinterval.Thesedepositsarecharacterizedby channel lags (recognizable on logs and highly cemented),troughcross-bedding,andbyplanar-beddedandcurrent-rippledsandstones (the trough cross-bedded and planar-bedded faciesare thereservoir faciesatRussell,StarbuckandSouthStarbuckfields(LeFeverandLeFever,1991;OglesbyandFischer,1991).

ReservoirPropertiesMostoftheavailablereservoirdataarefromthetwolargestfieldswithSpearfishpools,NewburgandSouthWesthope.Additionaldatawasobtained in theearly1980swith thedevelopmentofWaskadaandPiersonfieldsontheManitobasideofthebasinandManorFieldinSaskatchewan.

NewburgandSouthWesthopeFieldsProduction in Newburg and South Westhope is from boththe Berentson beds of the underlying Charles and SpearfishFormations (figs. 5 and 6, Table 1). These fields produce froma stratigraphic trap thatoccurson theupdip limbof a synclineformed from the dissolution of salt in the underlying PrairieFormation (Devonian). Theproductive sectionof theSpearfishFormationisunlikethemajorityoftheoverlyingsectionbecauseitisunoxidized,representedbyapalegray-greencolor.

TheSpearfishpoolrangesinthicknessfrom10to40feetwithinthefields.Theeffectivepaymaybesignificantlylessdepending

Figure3.Schematiccross-sectionshowingtheonlapoftheSpearfishFormationovertheMadisonunconformitysurfaceinBottineauCounty,NorthDakota. The shadesof green represent the variousmemberswithin theMissionCanyon Formation. The shades of blue andpurple representmembersoftheLodgepoleFormation(modifiedfromLeFeverandLeFever,1991).

Page 3: The Spearfish Formation – Another Unconventional …A discovery by Omega Hydrocarbons Ltd. in June 1980 resulted in renewed activitywhen the company recompleted a Madison producer

  Southwestern Manitoba  North‐Central North Dakota 

Formation Depth (ft); TVD  2,935 3,000 ft  Thickness (ft)  78 50 Average porosity  14.5% 14% API Oil Gravity  35  36 Initial Production  208‐337 Bopd 285‐305 Bopd Oil‐in‐Place per Section  9‐15 MMbo 13 MMbo 

 

JANUARY 2011 13

on the lithology. The reservoir has measured intergranularporositiesof12to15%withpermeabilitiesrangingfrom<0.1to320millidarcies(md).Thereislittleeffectiveverticalpermeability.Watersaturationcanbeashighas50to60%andoilsaturationsrangefrom0to37%andvaryonawell-to-wellbasis.Thereservoirisundersaturatedwithgas-oilratiosof100:1orless.Productionisaidedbynaturalandsecondarywaterdrives.

RussellandStarbuckfieldsfallalongthesametrendasNewburg-SouthWesthopefields. Thereservoirs forRussellandStarbuckshowsimilarreservoircharacteristicsalthoughtheyresultfromaslightlydifferentdepositionalenvironment.Recoveryefficienciesareverygoodforthesetwofieldsandappeartobeafunctionofreservoirenergy.WellsintheRussellFieldhavehighrecoverieswith abundant water production related to the strong waterdrive.Incontrast,SouthStarbuckhasalowervolume,withnearlywater-freeproduction.

WaskadaandPiersonFieldsThe Lower Amaranth pools (Spearfish equivalent) in Waskadaand Pierson fields are represented by red dolomitic siltstonesand sandstones interbedded with argillaceous siltstones andshale(Barchyn,1982).Barchyn(1982)notedthatthedolomiteisassociatedprimarilywiththefinergrainedsiltymaterial,whereasanhydrite cements the coarser sandy material and occurs asnodulesandlenses.

Again, thetrap is stratigraphicwith thereservoir locatedin the coarser grained lithologies -- the siltstones andsandstones. Porosities average 14.5% with an averagepermeabilityof14.8md.SlightlyhighervalueshavebeennotedfromthesandstonesatPiersonField(Husain,1990).The fields were initially developed with vertical wellsfollowed by secondary recovery through waterflooding.Horizontal drilling has successfully increased productionandreserves.

ManorFieldManorFieldinsoutheasternSaskatchewanisdifferentfromthepreviouslydiscussedfields, inthatpriortohorizontaldrillingtherewasnocommercialproductionfromverticalwells. Theverticaltestswereusedtodelineatethefieldbyidentifyingthedistributionandreservoirqualityofthesandstones.ProductionisfromthebasalsandsoftheLowerWatrousFormation(SpearfishFormationequivalent).TheLowerWatrousisinterpretedasamarginalmarinetotidalflat environment with the reservoir in the interbeddedto bioturbated sandstone and muddy siltstone facies,interpretedassubtidalshoaldeposits.ThesebedsonlaptruncatedMississippianstrata(Musial,1995).AnisopachmapofthetopoftheLowerWatroustotheMississippian

unconformity is a good indicator of the presence of the basalreservoir sandstone. The sand is deposited in areas of lowMississippianrelief.

Porosity,permeabilityandpaythicknessaresimilartoNewburg/South Westhope and Waskada/Pierson. Porosity values rangefrom15 to24%,averaging19%. Permeabilitiesaverage10mdwithanaveragenetpayof16feet.ThereservoiratManorisalsoundersaturated,withagas-oilratioof292.

CurrentActivityAspreviouslystated,thecurrentactivitybeganinsouthwesternManitobawithEOGResources.Applyingthedrillingadvancementacquired in Mountrail County with the Bakken Formation, thecompanyhasbeenhorizontallydrillingandfracturestimulatingtheLowerAmaranthsuccessfully(table1).ReservesfortheManitobaportionoftheplayareestimatedtobe25millionbarrels.

InApril2010,EOGResources,Inc.announcedthatitwasextendingtheplay from southwesternManitoba intoNorthDakota. TwowellshavebeencompletedintheSourisFieldtodate,aspartofitsWaskadaSouthprospect.Wellscurrentlyrequirefourdaystodrillandcompleteatacostofapproximately$1million.ReservesfortheNorthDakotaportionoftheplayhavebeenplacedat20millionbarrels.

Figure 4. Isopach of the Spearfish Formation through Bottineau County andsouthernManitoba.Oilfieldsrepresentedinfigure1areoutlinedinblue.

Table 1. A comparison of the reservoir characteristics of the currentSpearfish play (modified from Papa, 2010; Redekop, 2010; NDIC Case#12076). TVD = true vertical depth, Bopd = barrels of oil per day,MMbo=millionsofbarrels.

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14 GEO NEWS

ReferencesBarchyn, D., 1982, Geology and hydrocarbon potential of the Lower

Amaranth Formation Waskada-Pierson area, southwesternManitoba:ManitobaDepartmentofEnergyandMinesGeologicalReport82-6,30p.

Darton,N.H.,1898,JurassicFormationsoftheBlackHillsofSouthDakota:GeologicalSocietyofAmericaBulletin,v.10,p.383-409.

Darton, N.H., 1899-1900, Preliminary description of the geology andwaterresourcesofthesouthernhalfoftheBlackHillsandadjacentregions in SouthDakota andWyoming:USGS 21stAnnual ReportandHydrography,pt.4,p.489-598.

Dow, W.G., 1967, The Spearfish Formation in the Williston Basin ofwesternNorthDakota:NorthDakotaGeologicalSurveyBulletin52,28p.

Gerhard, L.C., Anderson, S.B., LeFever, J.A., and Carlson, C.G., 1982,Geologicaldevelopment,origin,andenergymineralresourcesoftheWillistonBasin,NorthDakota:AmericanAssociationofPetroleumGeologistsBulletin,v.66,p.989-1020.

Husain, M., 1990, Regional geology and petroleum potential of theLower Amaranth Formation, Coulter-Pierson area, SouthwesternManitoba:ManitobaEnergyandMinesPetroleumOpenFileReport11-90,54p.

LeFever, R.D., and LeFever, J.A., 1991, Newburg and SouthWesthopefields,in,Foster,N.H.,andBeaumont,E.A.,(eds.),StratigraphictrapsII, Atlas of oil and gas fields: American Association of PetroleumGeologistsTreatiseofPetroleumGeology,p.161-188.

Musial, R., 1995, An overview of the Lower Watrous Manor Pool insoutheast Saskatchewan, in, Hunter, L.D. and Schalla, R.A., (eds.),Seventh International Williston Basin Symposium: MontanaGeologicalSociety,Billings,MT,p.219-234.

Oglesby, C.A. and Fischer, D.W., 1991, Sedimentology and petroleumgeologyofaTriassicSpearfishsandstonereservoir,SouthStarbuckField, Bottineau County, North Dakota, in, Christopher, J.E. andHaidl, F.M., (eds.), Sixth InternationalWilliston Basin Symposium:Saskatchewan Geological Society Special Publication 11, p. 161-164.

Papa,B.,2010,EOGResources,RockyMountainOil,QuarterlyReporttoInvestors.

Redekop,B., 2010, SouthwestManitobawelcomesoil slick: WinnipegFreePress,February20.

Figure6.TypicallogfromthecurrentplayintheSpearfishFormation(modifiedfromPapa,2010).

Figure5.RepresentativecorephotographsoftheSpearfishFormationfromproducingwellsinBottineauCounty-(a)NewburgFieldSpearfishpaysandstoneatadepthof3,357feet(AmeradaHessCorp.-Newburg-Spearfish-CharlesUnitP-713,NE¼NE¼,Sec.16,T161N,R79W,33-009-01390-0000)(widthinphotographrepresents3.25inchesofcore);(b)TypicalSpearfishFormationshalebedatadepthof2,977feet(NorcenEnergyInc.-Lindstrom34-1,NW¼NE¼,Sec.34,T164N,R78W,33-009-01599-0000)(widthis4inches);(c)SpearfishFormationshalewithanhydritenodulesatadepthof2,987feet(NorcenEnergyInc.-Lindstrom34-1,NW¼NE¼,Sec.34,T164N,R78W,33-009-01599-0000)(widthis4inches);(d)SpearfishFormationsandstonebedwithrip-upclastsatadepthof3,020.5feet(NorcenEnergyInc.-Lindstrom34-1,NW¼NE¼,Sec.34,T164N,R78W,33-009-01599-0000)(widthis3inches).

(a) (b) (c) (d)