DUG Midcontinent 2013 Show Report Conference Summary

DUG Midcontinent 2013 Show Report
Conference Summary
Tulsa— The Midcontinent region is undergoing a complete
revival thanks to horizontal drilling and the latest fracturing
techniques. Some well results have been showing the best
economics in the U.S., leading to increased rig count and
more M&A transactions than usual, speakers said at Hart
Energy’s first annual DUG Midcontinent Conference &
Exhibition, April 23 – 24, 2013 in Tulsa, Oklahoma. The event
drew more than 1,000 attendees, who focused on getting
updates on the Mississippi Lime, Granite Wash, Tonkawa
and Cana Woodford activity.
Key concerns in all these plays include water disposal, drilling cost reduction, access to
pipeline takeaway and gas processing, and access to electricity.
Drilling results to date are bringing the sweet spots into focus. The Mississippi Lime
appears to be breaking into several sub-plays, such as the western core, Nemaha Ridge,
southcentral Kansas, and elsewhere. Acreage in Kansas appears to be less economic
than leases in Oklahoma, speakers indicated.
In the Mississippi Lime, there were a “number of significant JVs that occurred early on
and the rig count responded accordingly,” said Richard Mason, Hart Energy Technical
Director. Since first-quarter 2011, there has been approximately $4 billion invested, with
$440 million in annual drilling carries, according to Mason. He said excess capacity on
the services side will keep service costs low. The three major operators in the play,
SandRidge Energy, Devon Energy, and Chesapeake Energy, control the pace of the
play’s development.
Apache Corp., a longtime operator in the Midcontinent region, planned to double its
area production in four years, but it will likely achieve that goal one year earlier, said
Rob Johnston, vice president, central region. Long-reach horizontals are the reason.
Although Apache’s operated horizontal wells make up just 13% of its wells in the region,
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they account for more than half its area production, he said. Apache is operating 26 rigs
here, but expects to increase that to 33 rigs by July.
Meanwhile, year-to-date production from Newfield Exploration Co.’s Cana Woodford
play has exceeded its forecast and is up 40% to 14,400 barrels of oil equivalent per day
(65% liquids). Type curves differ across the acreage, said company vice president,
Midcontinent, Clay Gaspar. To the north, production is mostly oil and the formation is a
bit shallower. To the south, wells find oil and wet gas. Gaspar said Newfield estimates it
has 1,500 locations in the play.
Dual-section Woodford horizontal laterals and stacked horizontals in the thicker
Woodford sections will become more common as the play develops, speakers said.
Operators are also evaluating various increased-density spacing configurations.
Attendees also got an update on a new play, the SCOOP, or South Central Oklahoma Oil
Province, which is south of the Nemaha Uplift. This is an extension of the liquids-rich
Cana Woodford play. Although in its infancy, early wells show great promise, according
to Joe Schimelpfening, senior vice president, upstream business, Eagle Rock Energy
Partners LP.
Successes and potential in the Midcontinent make it attractive for M&A activity, making
up about 15% of total U.S. deal volume. However, from 2011 to year-end 2012, the area
attracted as much as $9 billion, “a much higher level than historically,” said Doug
Reynolds, head, U.S., Scotia Waterous, Scotiabank Global Banking & Markets.
But, he added, the leasing frenzy is over. Instead, operators are focused on putting the
drill bit in the ground.
Leslie Haines
Editor-in-Chief
Oil and Gas Investor
Hart Energy
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Did you meet these industry leaders while at
DUG Midcontinent?
President
Addax Minerals
President
Advanced Industrial Devices
Senior Vice President
Allied Oil & Gas Services
President & CEO
Alta Mesa Holdings LP
President
Altrav Petroleum Co.
Partner
Anadarko Minerals
CEO
Anchor Drilling Fluids USA Inc.
Principal
ArcLight Capital
President
Arkoma Power & Energy
President
Arrowhead Resources
COO
Atlas Pipeline
President
Audubon Field Solutions
President
Avlaon Chemicals Inc.
President
Belport Oil Inc.
President
Best Welder Supply
CEO
Best Well Services
President
Bracken Energy Co.
CEO
Brigadier Oil and Gas LLC
President & CEO
Bright Horizon Resources
President
Cactus Petroleum Corp.
CEO
Calyx Energy LLC
CFO
Calyx Energy LLC
COO
Calyx Energy LLC
CEO
Canary LLC
CEO
Carrollton Mineral Partners
CEO
Castlebay Energy LLC
Principal
CEI Engineering Associates
Chairman
Ceja Corp.
President
CIGECO
CEO
Citizen Energy
President
Clements Exploration Co.
President
Cleveland Integrity Services
Chairman
Commercial Resins Co.
CEO
Comstar Energy
Owner
Concho Land Co., LLC
President
Constien and Associates Inc.
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Did you meet these industry leaders while at
DUG Midcontinent?
SVP - MidCon and Permian
DCP Midstream
President
Demand Point Energy
President
Dexxon Inc.
President
Diamondback Industries
CEO
Diverse Energy Systems
CFO
Dorado E&P Partners
CEO
Eagle Energy Co. of OK, LLC
CFO
Eagle Energy Co. of OK, LLC
President/COO
Eagle Energy Co. of OK, LLC
SVP - Upstream Operations
Eagle Rock Energy Partner
SVP - Midstream Business
Eagle Rock Energy Partner
Partner
EnCap Investments
CEO
EnerJex Resources Inc.
Partner
ESS Funds. LLC
President
EST Co.
President
Farmers Royalty Co.
CEO
Farmers United Cooperative
Pool
Partner
Flat Iron Energy Partners
Chairman & CEO
Gulf Coast Tubulars Inc.
President
Haber Resources
President
Hedlund & Associates
COO
Highmount Exploration &
Production LLC
President
Hissop Energy LLC
Partner and Managing
Director
ICO Fund
President
IPS Engineering/ EPC
SVP - Anadarko
Jones Energy Ltd.
President and CEO
KWB Oil Property Mgmt. Inc
President
Latshaw Drilling Co.
COO
Longfellow Energy LP
President
Longfellow Energy LP
Owner/President
LT Mapping Services Inc.
President
LuGreg Trucking LLC
President
Matlin Petroleum Corp.
COO
Meagher Energy Advisors
President
Meagher Energy Advisors
COO
Nostra Terra Oil and Gas
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Did you meet these industry leaders while at
DUG Midcontinent?
President
Oseco
COO
Packers Plus Energy Services
COO and EVP
Panther Energy Company LLC
CEO
PayRock Energy LLC
Co-Owner
Pel-State Services
President and CEO
Ponderosa Advisors LLC
CEO
Primer Grey
President
QPS Engineering LLC
President
R.D. Davis & Associates LLC
SVP and COO
Range Resources
CFO
Red Fork USA Investments
President
Red Fork USA Investments
Principal
Remora Petroleum
President
Reservoir Visualization Inc
President
Select Engineering
COO
Southwest Sand Distributors
LLC
CFO
Spinnaker
CFO
Territory Resources LLC
Owner
TransPetro Pipeline LLC
President
Turner Bros. Trucking
SVP Operations
Unit Petroleum
Owner
USA Tank Co., LLC
Owner
Vectra Energy LLC
President
Velocity Midstream Partners
Owner
WestStar Oil and Gas Inc.
President
Wildcat Field Services
President
Wright Resources Corp.
“For the very first show, DUG Midcontinent brought back to Tulsa
a show that the Oklahoma oil and gas industry can be proud of
and share information with each other.”
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Did you hear these informative speakers?
Hal Chappelle
President and CEO
Alta Mesa Holdings LP
Robert Johnston
VP - Central Region
Apache Corp.
Alan Aitken
Director Application Engineering,
Sales and Operations Support
Baker Hughes
Dudley Viles
President and CEO
Bright Horizon Resources LLC
Greg Smith
President - MidCon and Permian
DCP Midstream LLC
Kumar Ramachandran
Assistant Professor
Dept. of Geosciences,
University of Tulsa
Mike O'Kelley
President and COO
Eagle Energy Co. of OK, LLC
Steve Antry
Chairman & CEO
Eagle Energy Co. of OK, LLC
Joseph Schimelpfering
SVP - Upstream Business
Eagle Rock Energy Partner LP
Roger Fox
SVP - Midstream Business
Eagle Rock Energy Partner LP
Robert Watson Jr.
CEO
EnerJex Resources Inc.
Mark Parker
Senior Business Technical Manager
Halliburton
Leslie Haines
Editor-in-Chief
Hart Energy
Richard Mason
Chief Technical Director
Hart Energy
Jason Garner
COO
HighMount Exploration and
Production LLC
Stephen Roberts
SVP - Arkoma Group
Jones Energy Ltd.
Danny Weingeist
Managing Partner
Kayne Anderson Energy Funds
Tom Thiele
VP - MidCon
Midstates Petroleum Co., Inc.
Clay Gaspar
VP - MidCon
Newfield Exploration Co.
Dana Murphy
Commissioner
Oklahoma Corp. Commission
Pierce Norton
EVP - Commercial
ONEOK and ONEOK Partners
Daniel Smith
CEO
Petro River Oil LLC
Porter Bennett
President and CEO
Ponderosa Advisors LLC
Ray Walker
SVP & COO
Range Resources
Ralph Williams
President
Reservoir Visualization Inc.
Doug Reynolds
Head of U.S., Scotia Waterous
Sociabank Global Banking &
Markets
Bill Ward
VP of Gas Supply and Business
Development
Superior Pipeline Co.
Frank Young
SVP - Operations
Unit Petroleum Co.
James M. Inhofe
R-Oklahoma
US Senate
Rick Wilkerson
President and CEO
Velocity Midstream Partners
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The DUG Midcontinent
Exhibit Floor sold out within
a week of the
announcement of the new
DUG Event!
DUG Midcontinent 2013 Statistics
 Total Attendance
 Total Sponsors
 Total Exhibitors
1,090
43
76
Countries Represented (4)
● Canada
● United Kingdom
● United States ● Venezuela
DUG Events have grown in
importance as the shale
plays around the country
increase their activity.
United States Represented at DUG Midcontinent - 27
Arkansas
Arizona
California
Colorado
Florida
Illinois
Indiana
Kansas
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Missouri
Nebraska
New Jersey
New Mexico
New York
Ohio
Oklahoma
Pennsylvania
South Carolina
Texas
Utah
Virginia
Wisconsin
West Virginia
Save the Date: DUG Midcontinent 2014
DUG Midcontinent focuses on the red-hot Mississippi Lime play in northcentral
Oklahoma and southcentral Kansas. The Mississippi Lime is the next generation of
resource play: a conventional reservoir made far more economic by the
application of unconventional technology. Learn about the top players, the top
technologies and the top results from this dynamic region.
On behalf of Hart Energy, we thank all those who have participated at our
conferences over the past four years and we invite you back next year. Mark your
calendars for the 2nd Annual DUG Midcontinent Conference and Exhibition.
The dates are March 2 – 4, 2014, at the Tulsa Conference Center in Tulsa,
Oklahoma.
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At DUG Midcontinent,
1 in 3 attendees
worked for an
oil and gas operator
Conference Attendees by Job Title:
Sales/Marketing
35%
Other
6%
Admin./Comm./
Consulting/Legal/I
T
Eng. Mgmt.
6%
Tech/R&D
24%
Field
Operations
3%
General /
Corporate
Management
25%
Purchasing/
Procurement
1%
Conference Attendees by Company Type:
Manufacturing/
Other
9%
Midstream
Operations
8%
Oil and Gas
Operator
31%
Eng./
Geosciences
5%
Drilling Contractor/
Land Services
3%
Banking/Finance/
Consulting
12%
Service and Supply
32%
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437 Companies Represented
713 Energy Group
Access Midstream
Addax Minerals
Advanced Industrial Devices Co.
Aggreko LLC
Agora Financial
Airgas Inc.
Aka Energy Group LLC
All-American Safety & Training
Allied Oil & Gas Services LLC
Alpine Site Services
Alta Mesa Holdings LP
Altrav Petroleum Co.
Amegy Bank of Texas
Anadarko Minerals Inc.
Anchor Drilling Fluids USA Inc.
Apache Corp.
Apex Companies LLC
Aramco Services
ArcLight Capital Partners LLC
Arkoma Power & Energy
Arrow Engine Co.
Arrowhead Resources
Atec Steel
Atlas Pipeline
Atlas Resin Proppants
Audubon Engineering
Audubon Field Solutions
Avlaon Chemicals Inc.
Baker Hughes
Bank of Oklahoma
Basic Energy Services
Belport Oil Inc.
Best Welder Supply
Best Well Services
Black Stone Minerals Co., LP
BMP Enterprises
BP Capital
Bracken Energy Co.
Brigadier Oil and Gas LLC
Bright Horizon Resources
Brown Exploration Co., Inc.
BTI Services
C&J Energy
Caballo Energy LLC
Cactus Drilling LLC
Cactus Petroleum Corp.
Caddo Bay Energy
Calyx Energy LLC
Cameron
Canada Co.
Canary LLC
Capital Exploration
Carbo Ceramics
Cargill Inc.
Carrizo Oil & Gas Inc.
Carrollton Mineral Partners
Castlebay Energy LLC
Cathedral Energy Services
CB&I
CEFS
CEI Engineering Associates
Ceja Corp.
CenterPoint Energy
Central Power Systems & Services
Cessna Aircraft Co.
CGG
Champion Technologies Inc.
Chesapeake Energy
Chestnut Exploration &
Production Inc.
Cheyenne Petroleum Co.
CIBC Griffis & Small
CIGECO
Cimarex Energy Co.
Cimation
Cirrus Aircraft
Citizen Energy
City of Tulsa
Clements Exploration Co.
Cleveland Integrity Services,
Colvin Capital LLC
Commercial Resins Co.
Common Resources
Completion Industrial Minerals
Compressco Partners LP
Comstar Energy
Concho Land Co., LLC
ConocoPhillips
Constellation
Constien and Associates Inc.
Continental Resources
Cooper Natural Resources Inc.
Copano Energy
Corporate Hospitality Services
Core Laboratories
Cortez Resources LLC
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Crestmark
Crown Energy Co.
CRS Proppants
CST Storage
Cudd Energy Services
DACO/Dave Allert Co.
Dale Resources
D'Argent Companies
DCP Midstream
DemandPoint Energy LLC
Denham Capital
Derrick Equipment Co.
Dexxon Inc.
Dialog Wireline Services LLC
Diamondback Industries
Digital Well File
Diverse Energy Systems
Dixon Energy Inc.
Don's Directory
Dorado E&P Partners
Downhole Products
Downing Wellhead Equipment
Dragon Products
Dresser-Rand Co.
Eaton Metal Products
Embraer Executive Jets
Empire Energy E&P LLC
Empirica LLC
Enbridge Marketing (U.S.) LP
EnCap Investments
Energy Spectrum
EnerJex Resources Inc.
Enersight USA
Enventure Global Technology
Environmental Drilling Solutions
ESS Funds LLC
EST
Evraz NA Inc.
Express Energy Services
Exterran
Extex
Fairfield Energy LLC
Farmers Royalty Co.
Farmers United Cooperative Pool
FBR Capital Markets
Felix Energy, LLC
Ferus Inc.
Fike Corp.
First Exploration Ltd.
Five States Energy Capital LLC
Flat Iron Energy Partners
FlexEnergy
Flexpipe Systems
FlexSteel Pipeline Technologies Inc.
Flotek Industries
Flow Data Inc.
FMC Technologies Inc.
Frac Terminals
Freemyer Industrial Pressure
FTS International
Future Petroleum Co. LLC
GableGotwals
Gangline/Trinity Sling
Gas Equipment Co.
GE Oil & Gas Inc.
GEA Refrigeration
North America Inc.
GEO Dynamics Inc.
Geoforce Inc.
Globe Energy Services
Gonzales Welding &
Construction Inc.
Gore Exploration LLC
Grace Automation
Graybar Electric
Green Energy Fuels LLC
Greene's Energy Group
Guardian Oil
Gulf Coast Tubulars Inc.
Haber Resources
Halliburton
Hampel Oil Distributors Inc.
Harding Shelton Inc.
HB Rentals
Hedlund & Associates
Highmount Exploration &
Production LLC
Highside Capital Management
Hissop Energy LLC
Holland Services
Horizon Mud Co.
Horizon Power Systems
Horizon Well Logging LLC
Horizontal Solutions International
Hunt Guillot & Associates
IACX Energy
ICO Fund
IHS
Industrial Piping Specialists
Ingrain Inc.
Integrated Controls Inc.
International Energy Corp.
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Intervale Capital
ION Geophysical
IPS Engineering/EPC
JATCO Inc.
Jetta Operating Co., Inc.
John Marshall Resources
Jones Energy Ltd.
Joshi Oil & Gas
J.P. Morgan
Kaiser-Francis Oil Co.
Kayne Anderson Energy Funds
Kessey Capital Partners
Key Energy Services
KH Investments LLC
Kimray Inc.
Kirkpatrick Oil Co.
KLR Group
Koch Energy Services LLC
Korte & Co., LLC
KWB Oil Property Mgmt., Inc.
Lakeshore TolTest Corp.
Lancaster Flow Automation
Latshaw Drilling Co.
L-Con Inc. Engineers & Constructors
Lee Keeling and Associates Inc.
Leistritz
Loadcraft Industries
Long Industries
Longfellow Energy LP
Longwood Elastomers Inc.
LT Energy Services
Lufkin Industries
LuGreg Trucking LLC
LW Survey Co.
M&H Energy Services
Maalt Transport
Magellan Midstream Partners LP
Mages Group, LLC
Magnum Oil Tools Ltd.
Marathon Oil Co.
MarkWest Energy
Mathey Dearman
Matlin Petroleum Corp.
Meagher Energy Advisors
Mergermarket
Meridian Drilling Co.
Merrill Lynch
MicroSeismic Inc.
Midcon Energy Partners LP
Mid-Continent
Energy Operating Co.
Midstates Petroleum Co., Inc.
Miller Energy Co.
MKEC Engineering Consultants
Momentive Specialty Chemicals
Mountain Supply and Service
MS Energy Services
Murex Petroleum Corp.
Murfin Drilling Co.
Murphy
Muscle Wall
Nabors Drilling USA, LP
National Oilwell Varco
NCS Energy Services
Nelsen Steel & Wire Co.
Nemaha Oil and Gas LLC
NEOK Production Co., LLC
Netherland, Sewell & Associates Inc.
New Pig Energy
New Prospect Co.
Newfield Exploration
NGP Capital Resources Co.
Nitro-Lift Technologies
North American Interpipe
Northern Electric Inc.
Nostra Terra Oil and Gas
Nova Directional
NSC Tripoint
NuTech
OIPA Oklahoma Independent
Petroleum Association
OKKI Industries LLC
Oklahoma Corporation Commission
OleumTech Corp.
ONEOK Inc
Oseberg LLC
Oseco
O-Tex Pumping
Owen Oil Tools
Packers Plus Energy Services Inc.
Panther Energy Co., LLC
PayRock Energy, LLC
Pel-State Services
Peter Paul Petroleum Co.
Petro River Oil
PetroQuest Energy LLC
Phillips & Sons Trucking
Phillips Energy Partners
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Phoenix Technology Services
Pilot Logistics Services
Ponderosa Advisors LLC
Praxair Services Inc.
Preferred Sands
Premier Natural Resources
Primary Natural Resources III LLC
Primer Grey
ProTechnics
Providence Energy Corp.
Prudential Capital Group
QEP Energy Co.
Qmax America Inc.
QPS Engineering, LLC
Quanta Pipeline Services
Quantum Energy Partners
R. D. Davis & Associates LLC
Range Resources
Red Fork Energy
Red Fork USA Investments
Remora Petroleum
Republic Services Inc.
Reservoir Visualization Inc.
RIGDATA
Riveer Environmental
RN Industries
Rockwater Energy Solutions
Rockwell Automation
Rotary Drilling Tools (RDT)
Royalty Holding Co.
RSI
Rupture Pin Technology
Ryan Directional Services
S&B Infrastructure Private Ltd.
Sabine Pipe Inc.
SAIC Energy,
Environment & Infrastructure
SAM Inc.
Samson Resources Co.
SandRidge Energy
SandRidge Energy Inc.
Sanguine Gas Exploration
Schlumberger
Schneider Electric
Scotiabank
Scott-Macon Equipment
Scout Downhole
SEC Energy Products & Services
SEI Energy, LLC
SEI Industries
Select Energy Services
Select Engineering
Seneca Resources Corp.
SERVAgroup, LLC
Shamrock Proppants
Shell Oil Co.
Sidewinder Drilling Inc
Sierra Engineering
Slider
SM Energy Co.
Source Energy Partners
Southbridge Property Co., LLC
Southern Frac
Southwest Sand Distributors, LLC
Spartan Energy Partners
Spectrum Tracer Services
Spinnaker
Spyglass Energy Group LLC
Stallion
Stanley Filter Co.
Steel Service Oilfield
Steptoe & Johnson PLLC
Stonebridge
STS Consulting
Stupp
Summit Proppants Inc.
Sunoco Logistics
Superior Pipeline Co.
SWCA Environmental Consultants
Swire Oilfield Services LLC
T H Hill Associates Inc.
T. S. Dudley Land Co., Inc.
Tablerock Energy
TAM International
Tank Connection
TCI Oilfield Factoring
TD Williamson
Teague Nall and Perkins Inc.
TEAM Oil Tools
TEG Solutions
Tenaris
Territory Resources, LLC
Tetra Tech
Texon LP
The Carlyle Group
The Crosby Group
The Halifax Group
The Heritage Group
The Holmes Organisation
The Oil & Gas Asset Clearinghouse
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The Persimmon Group
The University of Tulsa
TorcSill Foundations Inc.
Total Energy Corp.
Total Energy Partners
Total Safety
Traditions Capital Management
Trans Pacific Oil Corp.
Transpac Managers Inc.
TransPetro Pipeline LLC
TransWood Carriers Inc.
Trinity Chemical Industries /
Trinity Midstream Partners
Trinity Contractors
Triple Crown Energy
Tulsa Business & Legal News
Tulsa Pipeline Expo
Tulsa Word
Turner Bros. Trucking
UKB Capital
Ulterra
Unit Petroleum
UniversalPegasus International
University of Tulsa
URS Flint
USA Tank Co., LLC
Valerus
Varel International
Vectra Energy LLC
Velocity Midstream Partners
Viking Exploration
Virage Energy Group LLC
VisitTulsa
Watco Transload & Port Services
Weatherford
Wells Fargo
Welspun Global Trade LLC
WestStar Oil and Gas, Inc.
Wild Well Control
Wildcat Field Services
Willbros
Williams
Wolseley Industrial
Wood Group Mustang
WPX Energy
Wright Resources Corp.
Zeeco Inc.
Zephyr Gas Services LLC /
CDM Resource Management LLC
DUG Midcontinent Quotes:
 “My partner and I found the conference and exhibits to be very helpful
and instructional. I look forward to next year.”
 “The conference was extremely well-run and highly professional.”
 “Good place to network – visit old friends and meet new ones”
 “Great networking for the Midstream sector.”
 “I appreciated the speakers’ willingness to answer questions with
relevant information.”
 “The after party was a good idea – created a great networking
opportunity”
Photos from the DUG Midcontinent 2013 event
Page 13
Entryway
Registration
Networking
Page 14
Conference
Session Room
Page 15
Luncheon
and
Exhibit Floor
Page 16
Hart Energy
appreciates all the
hard work that the City
of Tulsa provided to
make this first annual
DUG Midcontinent a
huge event.
We also thank our
Sponsors and
Exhibitors who helped
make this a unique
event for the City of
Tulsa.
Please join us next
year in Tulsa on
March 2-4, 2014 for
the second annual
DUG Midcontinent.
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