Collingwood Shale - Michigan
Shale - Oil & Natural Gas Field
The Collingwood Shale is located in the following Michigan
counties: Emmet County, Cheboygan County, Presque Isle County, Antrim County, Charlevoix County, Otsego County,
Montmorency County, Alpena County, Benzie County, Grand Traverse County, Kalkaska County, Crawford County, Oscoda County,
Alcona County, Manistee County, Wexford County, Missaukee County, Roscommon County, Ogeman County, Iosco County, Lake County,
Clare County, Gladwin County.
What is the Collingwood Shale?
The Collingwood Shale is an Oil & Natural Gas field between 10,000-12,000 feet below Northern Michigan. The
Collingwood Formation is the latest emerging Oil & Natural Gas field in the form of shale that companies are flocking
to. Things started to heat up in 2008 when Encana began buying up mineral rights acreage. The company drilled their first natural gas well in 2010 which was located in Missaukee County, Michigan.
Encana came up with 2.5 mmcfd of natural gas from that well.
The Collingwood
Shale is 40-45 feet thick and is about 2 miles below the surface. Recently, a land auction brought in a lot of money!
Some of the highest counties were Kalkaska, Crawford, Charlevoix, and Cheboygan.
While
many companies have been very silent in regards to the Collingwood Shale, you can bet we will here more on this shale play
in 2012. The price of natural gas around $3.40 and I feel we may test $4.00 sometime in 2012. Since the Collingwood
Shale is so deep, drilling costs are very expensive. Having said that, it would take a gas price of $6-7
before many more companies step up to the plate and test this shale formation. As far as Collingwood Shale Oil, I expect
oil to be discovered here and oil prices to hit $95 in 2012.
Collingwood Shale Map - Northern Michigan
Collingwood Shale
Stocks - Companies Drilling in the Collingwood Shale
BreitBurn Energy Partners LP BBEP - BreitBurn Energy Partners has a large position in the Collingwood Shale located in Northern Michigan
Finally, we’ve been closely monitoring the recent activity in the Utica Collingwood shale play in Northern Michigan. As the
largest gas producer in Michigan, and the owner of significant acreage and extensive infrastructure, we’re well positioned
to take advantage of this emerging play,
There has been a lot
of news in the past few weeks about the Utica Collingwood
shale play in Michigan. BreitBurn holds a significant acreage position in Northern Michigan of more than 470,000 net acres.
Additionally, we own and operate more than 150 miles of high pressure gas gathering lines over 1,000 miles of low pressure
line, more than 100,000 horsepower of compression, three gas processing plants and four NGL recovery plants.
With what we know about the play today, we have more than 90,000 net acres in areas
where we believe the Utica Collingwood is prospective.
The vast majority of our acreage position is held by production, which gives us the flexibility to monitor industry activity
and determine the best course of action to capture that volume.
Encana ECA - Encana is drilling in the Collingwood Shale which is located in Michigan. The Collingwood Shale has the potential to be
a new Oil & Natural Gas field in the United States.
Additionally, the 425,000 acres we hold in the Collingwood
shale in Michigan are also expected to be perspective for liquids. We plan to drill 4 wells in the play this year, 2 vertical
wells in our northern oil play and 2 horizontal wells in liquids-rich southern portion of this natural gas play. Initial drilling
results and indications in each of the prospective formations that I just described are showing promise as we step up our
evaluation and identification of its liquids potential. Over the next few years, these plays have a potential to deliver substantial
volumes of high-value liquids production to Encana's portfolio. In the Collingwood, what we've identified is a liquid-rich area in the southern part of the play. And moving towards
an oil window, we believe, in the northern part of the play. There are just very few data points on that play at this point
in time, so we really don't have anything more to offer.
October 2011 Update - In the Collingwood shale in Michigan, we drilled 2 horizontal wells in the southern liquids rich gas part of the play.
The second horizontal well was drilled to a total measured depth of 16,900 feet with an effective horizontal length of 7,500
feet. Both wells are expected to be completed during the fourth quarter. Services are somewhat scarce in Michigan compared
to other parts of the country, but we have contracted a completions crew and expect to have them arrive in Michigan later
this month.