Anyone local to the Avoyelles area hearing anything about the Eagles Ranch Well? It appears that they recently finished drilling well and should be moving frac crews on location soon.
You would think that EOG wouldn't be foolish enough to play the gold rush game after what the industries been through. They are too big to need to fool investors with initial 24 hour production rates for a stock bump, so maybe they know something that we don't see. If EOG wasn't involved and this wasn't just after a major downturn in the energy markets I'd think differently, but I feel like we'll have to let this play out.
Don't forget about their cash outlay for the 3D Seismic. It's not insignificant.
Over the life of GHS we have followed and rooted for a number of plays that had experienced operating companies, large land lease programs and seismic covering acreages greater than what exists currently in the LA AC prospective area - that proved to not be economic. Will this time be different? We all hope so but it is worth pointing out that our expectations should be tempered until enough wells are drilled and completed to prove up specific acreage.
In my experience EOG will tend to understate results at this point in a play if the prospects are good.
Hey Guys, Maybe I'm missing something but it looks like EOG went with a straight EagleFord frack. I don't see anything that indicates they did any acidization. Also, the well history shows they cemented the 7" liner in. There was no need to do that. The cement only fills and obstructs the natural fractures. Those are two things that may be important to how the well preforms.
Seeing as how the 7 inch liner is set in the pilot vertical hole above the Austin Chalk, I don't think it will impede flow.
Jay, What I see in the Well History is they pumped 1100 sacks. That's a lot of cement. I'm also assuming that they ran full weighted mud. That would be typical of drilling EagleFord. They should have drilled AC with under weighted mud. It would be interesting to see how much mud loss there was in Chalk.
They drilled with oil base for hole stability. Unless they intersected natural fractures they would not have lost any mud. Based on the offset well production by Anadarko, I think the presence of natural fractures is unlikely.
I think we see the same problem with the Anadarko and Pryme wells. They were drilling with weighted mud and did not clear the mud from the chalk. Again, the chalk should be acidized to clear the debris and mud from the formation.
I see what your saying about the mud, but the 1100 sacks of cement being too much is hard to tell. You'd have to figure what that particular annulus needed, then ask did they have full returns and if so and how much cement did they reversed out.
In a perfect world a good cement sheath shouldn't be a problem, but if it migrated into fractures your right that could be a real problem. Whether or not that happened is somewhat knowable and cement jobs can be adjusted in the future if need be.
Keith, they could have completed the well without cementing the liner in the lateral. There was no reason to cement it in. You do the tieback and let the liner float free. Then sand pack it in The liner in the lateral only serves to keep the well bore from collapsing in on the hole. If they had "gravel bed" fractures in the lateral then they could have run slotted liner to hold the formation in place.
I agree Joe, I was just saying that a good cement job that didn't get into the fractures in a perfect world shouldn't be a show stopper.
I also agree with the previous comment about EOG making the same mistakes as Anadarko in this same area. I was working with some Anadarko folks on conventional GOM stuff when the chalk work was going on and no one that had chalk experience could understand what they were thinking.
Why are these companies using conventional practices in an area where those practices have been proven to fail?