Elm Coulee Oil Field
| Elm Coulee | |
|---|---|
 |
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| Country | United States |
| Region | Montana |
| Location | Richland County |
| Coordinates | 48°2′33″N 104°27′58″W / 48.04250°N 104.46611°WCoordinates: 48°2′33″N 104°27′58″W / 48.04250°N 104.46611°W |
| Field history | |
| Discovery | 2000 |
| Production | |
| Current production of oil | 53,000 barrels per day (~2.6×106 t/a) |
| Producing formations | Bakken formation |
Elm Coulee Oil Field was discovered in the Williston Basin in Richland County, eastern Montana, in 2000. It produces oil from the Bakken formation and, as of 2007, was the "highest-producing onshore field found in the lower 48 states in the past 56 years." By 2007, the field had become one of the 20 largest oil fields in the United States.
Geologist Richard Findley was undaunted by the failure of "horizontal" Bakken play of the early 1990s. This early attempt to exploit the Bakken Formation using horizontal drilling failed because the wells were placed in the shale members of the Bakken. Findley found that the dolomitic middle Bakken member in Montana had oil shows and porosity in sample cuttings, as well as porosity on well logs. Also, the porous middle Bakken member could be mapped over a large area in Montana, which Findley called a "Sleeping Giant". The Bakken formation had long been known to produce small amounts of oil throughout much of the deeper Williston Basin. Although the volume of oil recovered was commonly small, rare wells would produce large, economic volumes from the Bakken. Two wells in the future Elm Coulee area had made significant production from the Bakken in vertical boreholes, which was somewhat unusual.
The area Findley mapped was too large for a small operator like Findley, so he submitted his concept to Lyco Energy of Dallas, Texas in 1996, and Lyco promptly decided to take the project on, with Findley retaining a small ownership interest. Lyco began leasing in 1996, and then re-entered nine old vertical wells as a test, completing them with 100,000 lb fracs in the middle Bakken formation in 1996-7. The results were mixed, but confirmed that the Middle Bakken was saturated with producible oil, and would respond to a frac.
Although there were a handful of horizontal wells being fracced in the Barnett Shale of Texas at the time (1997-8), those activities were not yet released. So, with no data available for an analogy, Lyco's geologist (Michael Lewis) and engineers (Charles Wiley and Gary Dittmar) set out to design the initial test well. Because of the relatively high cost and large potential scope of the project, Bobby Lyle (president of Lyco) decided that it would be prudent to involve investors. So, the Lyco team sought funding from numerous financial institutions and a few independent oil companies. But, the project was viewed as too risky, since there was no analogy for the concept. Finally, Halliburton agreed with Lyco's assessment of the potential, including the potential boon for its stimulation business, and agreed to support Lyco's operations financially through its commercial services division.
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