Abstract

Initiation of the Barnett Shale Gas play in 1981 ushered in a new era of understanding of source rock resource plays. Over the years as industry’s knowledge base increased, many attempts were made to extend the shale play into the oil window. In the late 1980’s, Mitchell made several unsuccessful attempts in Jack County followed by Oryx’s 1991 failed attempt in their horizontal Grant #1 in Montague County.

In 2000, Dallas Production Inc. drilled and completed their Swint #1 in the Barnett Shale in Montague County and the industry began to seriously consider the oil potential. However, the production data from the Swint #1 and unsuccessful attempts by the industry to follow up on this producer only resulted in a short period of enthusiasm.

It was not until W. B. Osborne’s successful recompletions and new wells at St. Joe Ridge field in Southeast Montague County that the industry really began to take notice. Mitchell Energy had internally proposed a Barnett Shale oil model in the late 90’s, but due to low oil prices and preoccupation with the gas play, never tested the idea. There were many lines of evidence that suggested the existence of a commercial oil play and the geologic conditions by which it might be successful.

With the current level of oil pricing in the $100/barrel range, the play has potential for being much more widespread than Mitchell’s original model suggested. EOG’s recent announcement of its success in Montague and Clay Counties has potentially ushered in a new technological boom in the Barnett, however like the gas play it is not without risk.