The Anadarko Basin is the new Permian Basin
The Permian basin is overcrowded and the Anadarko basin - home to the SCOOP and STACK - is coming on strong. Private equity firms and public companies asked one question at the most recent Energy Capital Conference in Austin, TX, "where to next?", and the Anadarko Basin has been the resounding answer.
Oklahoma's Anadarko Basin is home to multiple productive reservoirs including the Woodford, Meramec, Sycamore, Hoxbar, Springer, and Osage with more than 50 wells producing more than 2,000 barrels of oil equivalent per day ("Boe/d"). These world-class wells boast >50% IRR in a sub-$50 oil price environment, making the Anadarko basin the hottest new basin in financial circles.
While our wells rival that of the Permian, our completion and production designs are still in their adolescent years. Devon Energy's record Privott 17-20-16N-9W 1HX well in Blaine County, OK at 6,000 Boe/d (50% oil cut) is but one example of what we might be able to expect with better completion designs.
The SCOOP was first coined by Continental Resources (NSYE:CLR) in 2013, standing for "South Central Oklahoma Oil Province." Since, it's become one of the most prolific plays in the United States and was awarded Oil & Gas Investor's Best Discovery in 2015. While this play has been overshadowed by the STACK play in recent years, Gulfport Energy's (NYSE:GPOR) unexpected 2016 entry into the SCOOP (through acquisition of Vitruvian Exploration II) for more than $28,000 per net acre demonstrates just how exciting the SCOOP still is.
Newfield Exploration announced it's "STACK" play shortly after Continental announced the SCOOP play in early 2013; STACK standing for "Sooner Trend Anadarko basin, Canadian and Kingfisher Counties." This play has quickly emerged as one of the top plays in the United States, highlighted by Devon Energy's (NYSE:DVN) 2015 acquisition of Felix Energy for roughly $23,750 per net acre.