Oklahoma plays a critical role in producing oil, natural gas, and agricultural products. This state is home to several leading mineral-producing counties. The EIA report of 2022 has recorded the production of around 152 million barrels of crude oil in the state.
This means the state is known not only for its agricultural produce but also for an enormous amount of oil! When it comes to oil production, shale plays are the major contributors to boosting the economy of the state.
The Oklahoma STACK play, one of the top shale plays in the US, offers numerous benefits to investors. Investors are increasingly drawn to this play due to its strategic location, technological advancements, and, of course, its high resource potential.
Here you will explore the role of Oklahoma’s STACK play in the growth of the US oil and gas industry. Let's dive deeper.
What is the Oklahoma STACK Play?
The Oklahoma STACK play is one of the high mineral potential shale plays in US. In 2011, Newfield Exploration first drilled the STACK region with its first Wildcat Well. Later, in 2013 it was declared as the STACK play. Geoscientists named it STACK, an acronym derived from its regional and geological characteristics.
STACK stands for Sooner Trend, Anadarko Canadian, and Kingfisher Play. It is situated mainly in Canadian and Kingfisher Counties. Although it covers the maximum area of Canadian and Kingfisher counties, it has spread over other counties in Oklahoma.
Industry experts regard the play as a highly mineral-rich shale formation that significantly contributes to Oklahoma’s developed economy. This play includes areas with significant condensate and crude oil reservoirs. In the past few years, the shale play caught the attention of several drillers.
It has become the targeted place for alternative drilling techniques and significant oil and gas investments. This includes the acquisition of mineral rights. Since its official designation as a Shale Play in 2013, it has continued to demonstrate significant productivity, thereby underlining the enhanced economy. It is easier for drillers to extract the minerals from a single drilling site due to its potential layers of producible formations.
The STACK play covers an area of around 1000 Sq. Miles in the core region. Its abundant reserves have led to the adoption of horizontal drilling techniques. It has now expanded its reach to include two additional counties, Dewey and Blaine. Its expansion into other counties increases the likelihood of mineral rights transactions.
It offers advantages to individuals looking to sell their mineral rights. It also emphasizes ongoing research and exploration efforts, further demonstrating the play’s potential to enhance drilling operations. Due to such abilities, many investors and explorers get enticed by the STACK play values.
Why Investors Turn to the Oklahoma STACK Play for Value
Investors in any field anticipate a favorable return on their capital. Considering the current market conditions, the prices per acre of land in the Permian basin, one of the leading shale plays in the US, have significantly increased. Yet, given the current modest prices and the high mineral potential in the Oklahoma STACK, numerous investors are choosing to invest here. Have a deeper look at why this play is catching the attention of investors for better value.
Attractive ROI and Strategic Location:
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The STACK is located in the Anadarko Basin, Oklahoma, thanks to its abundant natural resources and excellent location, attracting oil and gas investors.
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Since early 2016, oil experts have recognized its growth and potential reserves.
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IHS Energy, a leading oil and gas information provider, highlighted that this play remains viable, even with prices as low as $45 per barrel.
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This shale play reserves have hydrocarbon friendly surroundings, which results in lower costs. These factors make the play appealing to investors.
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Major companies, including Jericho Oil Corp and ExxonMobil Corp, have expressed interest in this play.
The table below displays the production values of the STACK Play from 2013 to 2020. The significant investment potential of the STACK has drawn numerous investors due to its robust value.
| Year | Oil Production in BBLs | Gas Production in MCFs |
|---|---|---|
| 2013 | 10,834,415 | 334,022,020 |
| 2014 | 17,821,781 | 682,941,327 |
| 2015 | 23,731,204 | 353,888,408 |
| 2016 | 37,216,003 | 458,821,059 |
| 2017 | 58,607,919 | 691,690,896 |
| 2018 | 83,173,503 | 996,172,458 |
| 2019 | 92,172,051 | 110,589,827 |
| 2020 | 42,526,449 | 626,071,680 |
The following table shows the number of oil and gas wells that were drilled in the STACK Play from 2013 to 2020.
The impressive production values, strategic location of the shale play, and its significant opportunities for enhanced ROI captivate many investors.
What Makes the Oklahoma STACK Play, a Magnet for Oil and Gas Investors?
Investors tend to invest money in fields where there is profit and potential for a higher return on investment. The STACK play in Oklahoma emphasizes lower costs and hydrocarbon free drilling. Here are some factors that make the play a magnet for oil and gas investors.
Economic Stability and Additional Benefits:
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Wells in this shale play account for lesser costs for drilling. It also conducts better performance than other developments. It contributes to the state's economic stability.
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As it requires less cost for drilling, it ultimately minimizes the transportational and operational expenses. This also contributes to lower production taxes.
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The investor invested in the STACK play is eligible to receive full WTI (West Texas Intermediate) spot prices for the produced oil and gas.
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In some cases, the investors also permitted BTU (British Thermal Unit) bonuses.
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Due to such bonuses and spot prices, this play not only benefits investors but also contributes to its economic stability.
Higher Chances for Prolonged Returns:
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Investors can enjoy prolonged periods of passive income from higher-quality oil and gas.
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According to oil and gas experts, this play provides a positive return on investment due to its lower prices and high potential reserves.
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It offers the advantage of continuous returns and income tax benefits for savvy investors.
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While the Permian Basin is recognized as a top producer, the STACK play is also known as a highly potential producer.
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This shale play exhibits enhanced oil production during low-price scenarios compared to other drilling locations.
Market Access:
The STACK play is strategically located near key oil and gas markets, including refineries and transportation hubs. Clearly, nearby transportation reduces costs and accelerates product delivery, enhancing investment profitability.
Technological Developments:
Horizontal drilling and hydraulic fracturing have unlocked the potential of the STACK play deposits. Oil and gas investors are interested since this has greatly raised output and revenue. Naturally, this attracts significant investments.
So the answer for what makes the STACK play in Oklahoma a magnet for oil and gas investors is: the location, market access, technology, and economic stability! They make the STACK play a top oil and gas investment setting, offering sustained expansion and financial security for interested parties.
If you are a passionate investor seeking new opportunities, investing in this play will provide the aforementioned advantages.
Future of the STACK Play in Oklahoma
Defining the future of any shale play sets multiple challenges like advancements in technology, declining curve of mineral potential, market price fluctuations, political scenarios, global crises, and so on. Regarding the STACK play, the formation still harbors significant mineral reserves. Along with the STACK play, one more play that contributes to Oklahoma’s economy is SCOOP play.
SCOOP indicates South Central Oklahoma Oil Province. The STACK and the SCOOP helped Oklahoma in shaping the energy outlook. These plays navigate conventional as well as non-conventional formations across the Oklahoma State. Observing the high production amount of these plays, the Newfield Exploration Co. have initiated a new concept SCORE.
SCORE stands for Sycamore, Caney, and Osage Recourse Expansion. It aims to exceed the development of oil and gas within the STACK area and explore the several eventual horizons within the STACK play. It involves formations like Meramec, Caney, and Osage. Implementing SCORE results in improved production and continues to enhance drilling activities for optimized outcomes.
Oklahoma also incorporates the Merge play. The Merge play is located in the region of the Anadarko Basin. It lies between the STACK and the SCOOP plays. Two prolific trends are successfully merged by Merge play. As it holds the centralized area of the STACK and the SCOOP, several energy companies target these plays for exploration. It significantly improves the potential of oil and gas in Oklahoma.
Today, the latest drilling techniques and technological advancements are restructuring the energy industries, and so is the Oklahoma STACK play. The STACK play will continue contributing to a developed economy, reinforcing its future potential.
Conclusion
The Oklahoma STACK play has become a dominant shale play due to its high potential mineral reserves. This play features lower drilling costs and benefits from a hydrocarbon-friendly environment. Investing in the STACK play provides multiple advantages for investors. Investors will benefit from full WTI spot prices, BTU bonuses, and other similar advantages. Due to its production abilities and enormous advantages, it encourages investors to invest in this play.
Its compatible production values and improved number of drilled wells emphasize its durability and potential for significant return on investment. Moreover, the latest technologies and innovations have simplified the drilling operations in the play. The production dynamics in the STACK prompted Newfield Exploration Co. to introduce SCORE. It assesses the overall performance of the play.
Along with the implementation of SCORE, its competitive pricing and environmentally sustainable drilling practices are poised to establish the play as a key contributor to the state’s economy. The attention and involvement of several investors will shape the STACK play and Oklahoma’s energy sector, eventually contributing to economic growth and prosperity in the upcoming years.
Similar to the Oklahoma STACK play, other high-yielding plays such as the Eagle Ford and Barnett Shales in Texas also stand out. You can get the details of such plays on our innovative and data-driven platform, Mineral View! Our integration with innovative techniques offers the most up to date production, well, and counties data in one click.
FAQ’s
What is the STACK play in Oklahoma?
The STACK play is the mineral formation, including multiple counties. It is one of the high potential shale plays in Oklahoma.
What does the STACK play in Oklahoma stand for?
In Oklahoma, 'STACK' stands for Sooner Trend (the oil fields), Anadarko (the basin), and Canadian-Kingfisher (the counties). STACK is the initials of these oil fields, basins, and counties.
