Interest dims in Oklahoma shale play as drilling results disappoint

NEW YORK - It promised to be the next great shale play, but an oil-and-gas-rich area of central and south Oklahoma has confounded many of the producers lured there, with one of its biggest champions warning that its business may struggle to survive.

But while their many layers of oil mimicked the Permian, the region’s geology proved more inconsistent, undercutting results and making it a higher-cost U.S. shale area for producers. Cimarex Energy also forecasts a cut in spending, to 15% in the region in 2019, down from 30% last year, company presentations showed.

“The SCOOP/STACK is not a traditional shale play, so when you think about developing it, there are a number of different rock types,” said Denise Yee, vice president at consultancy RS Energy Group. “As it’s so complex, the hydrocarbon mix changes across the play, and the oil window is limited.” “The ‘Permian Jr’ nickname set some lofty expectations,” said Shak Ahmed, research analyst at RS Energy. “The play is resetting expectations around what it is capable of, and while this won’t be painless, it will be better in the long term.”

How much of money wasted?

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