Category Archives: Weir Sand Formation

Ohio’s Clinton Sandstone Produces Oil From Horizontal Fracturing

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EnerVest is drilling horizontal wells down to the Clinton formation in Ohio.  The Clinton produces oil, but not in huge quantities.  It’s enough to make a profit though, even in today’s bad oil market.  The wells cost just under $2 million, and return between $7 million and $10 million.  That’s a pretty good ROI.

Cunningham Energy is doing something similar with the Big Injun and the Weir Sand formations here in West Virginia.  They’re not drilling a lot right now, and the market isn’t good for oil right now, but if they’re able to keep the lights on until oil prices start to come back up they should be in a really good position.

Speaking of oil prices, they’re back over $41/bbl today.  We don’t see those prices being sustainable over the long term but if the Saudis are able to get Iran to agree to a production freeze at any level, maybe they will be.  Maybe.

More Horizontal Oil Drilling in West Virginia

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We’ve talked about drilling for oil in West Virginia before.  The same folks who brought drilling to the Big Injun formation are introducing us to drilling to the Weir Sand formation.

Cunningham Energy has announced that it’s drilling for oil in Kanawha County, WV.  It’s currently working on another site in Clay County, WV.

It doesn’t seem like a really good time to be drilling for oil.  The Saudis have said they will produce enough to keep up with demand, and American frackers will follow the dictates of the market, so it’s impossible to tell how low oil prices will go.

Cunningham seems to think that their oil will be marketable.  They may be right.  Getting leases in that part of West Virginia will be cheap, probably in the $100-$300 per acre range when they’re dealing with knowledgeable mineral owners.  They’ll be able to pick up leases for $5-$10 per acre from people who don’t take the time to educate themselves about oil and gas.  Drilling only 2000 feet down and 4000 feet out will not present any kind of technology challenge.  The real trick will be putting systems in place to be efficient.