SCOOP/STACK to gain in-basin shale sand operation

By Luke Geiver | August 28, 2018

The SCOOP/STACK shale play of Oklahoma is gaining a new in-basin frack sand mine. Black Mountain Sand, a Texas-based firm that first began operating in-basin sand operations in the Permian before expanding into the Eagle Ford, announced this week it will open its sixth in-basin mine in Blaine County, Oklahoma.

“Since shipping our first truckload of sand in January 2018, our customers began asking for more,” said Rhett Bennett, found and CEO of Black Mountain Sand. “To help meet this demand, we first expanded into the Eagle Ford Shale while also increasing our annual capacity in the Permian. Today’s move means we can now deliver our product’s cost-savings benefit to our customers with operations in Oklahoma, helping strengthen their bottom line across multiple projects in multiple basins.”

The western Oklahoma mine, set for operation by early 2019, gives Black Mountain Sand more than 19 million tons of sand production capacity across its three sand areas. The Blaine County mine will employ 75 people and produce 3 million tons of sand annually.

The growth of the SCOOP/STACK play means the mine’s sand could be in high demand. FIG Tree Capital, a Texas venture capital firm with projects in Oklahoma, the Bakken and the Eagle Ford, announced earlier this week results of two wells in the area that recorded massive initial production rates for shale gas.

“We targeted acreage in the STACK and SCOOP during the downturn because the well data showed the respective plays were highly economic even at lower prices. These flowback numbers are characteristic of what we saw back then that attracted us to the area in the first place,” said Garland Benton, director of business development for FIG.

“This type of development is highly attractive to us due to the lower cap ex and improved returns that can be associated with multi-well pad drilling,” according to Ryan Wright, CEO of the venture capital firm. Wright and his team have mainly been working with Oklahoma City-based Continental Resources. Wright said the recent production rates indicate Continental has continued to improve their completion techniques during the course of development in the past few years which is leading to better well results.

FIG Tree partnered with Continental Resources to drill wells to the Meramec Formation from the same pad located in Custer County. The Rockin Dobbin 1-23-14-11XHM had 24-hour production reach a peak rate of 216 bbls of oil and 17,796 mcf of gas. The Zettie 1-23-26XHM 24-hour production peaked at just over 100 bbls of oil and 21,049 mcf of gas.