Horizontal Wells In Oklahoma Open Up Previously Unreachable Deposits

   Horizontal drilling in North America over the last decade has produced more and more oil from past-producing deposits and shale and will continue to do so as technology continues to grow.

In Oklahoma, Devon Energy Corp. (NYSE: DVN), Panhandle Oil and Gas, Inc (NYSE: PHX) and Sandridge Energy, Inc (NYSE: SD) are some of the bigger names that have begun using or explored the merits of horizontal drilling. An up and coming exploration and production (E&P) company, American Petro-Hunter (OTCBB: AAPH) has already begun operations in Oklahoma with its horizontal drill project.

In a recent interview about horizontal drilling with Kevin Shaw, an analyst with Wellington West Capital Oil & Gas, he states, "It's all about going into poor-quality rock, which over the last 30 years typically would have been uneconomic to drill vertically. Horizontal drilling can open up more reservoir rock, connect the wellbore to more reservoirs, go into tighter sands with multistage fracture completions and increase recovery factors to increase reserves and production..."

Companies on the leading edge of this technology will fare better than companies playing catch up in the coming years.

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