Recovery of bypassed oil in the Dundee Formation using horizontal drains. Annual report, May 1, 1995--April 30, 1996

The principal objective of this project is to demonstrate the feasibility and economics success of producing oil from abandoned or nearly abandoned fields in the Dundee Formation of Central Michigan using horizontal drilling technology. The project is a cooperative venture between Michigan Technological University (MTU), Western Michigan University (WMU), and Terra Energy (now Cronus Development Co.). During the fall of 1995, the demonstration well for this project, the TOW No. 1-3 well in Crystal Field, Montcalm County, Michigan, was completed in the Dundee Formation and for the first three months of operation produced 50 bbl/day oil with no water cut. Because surface facilities were inadequate to handle full production, the well was produced for 12 hrs/day and shut in for 12 hrs/day. In January, 1996, new surface Facilities were completed and production was raised to 100 bbl/day. Daily production has varied from about 75 to 100 BOPD since that time. To date, the well has produced over 10, 000 bbls. The water cut remains at 0% and pressure has been maintained at 1445 psi by an active water drive. If expectations are met, the well will pay out in less than 1 year and continue on production for at least 5 years. Cronus Development Co. is tentatively planning to drill three more horizontal wells in the Dundee in Crystal Field. Thus, the play concept we chose to test, that bypassed attic oil remained in the Dundee reservoir between wells that had been produced at excessively high flow rates and had coned water during primary production, appears to be correct, and the TOW No. 1-3 HD-1 well is now a scientific, and appears soon to become an economic, success