Can someone explain why Aethon is spending so much money to drill the below CULs in the Cotton Valley sands (and/or LCV)? They look like duds. I'm guessing they cost over $10 mil. But I might be wrong. Maybe someone who knows the engineering can clarify. Check out 35 17N 11W and 1 16N 11W and 2 16N 11W. Some pads are in other sections and the laterals slant into section 35 and section 26 of 17N 11W. I can understand making a mistake on one big well, but why do they continue to keep putting in more low producers? In Oct. they spudded this new one in 1 16N 11w:
|250520||HA RA SU60;CHARRY 2-35 HC||001-ALT|
Now I doubt this is some sort of wildcatting for oil in the CV sands, right? So I guess the only logic here is for these wells to pay out in NG low quantities for 30 years. As I understand it, I had always heard that shale wells, which these might not be, were sort of sure things, whereas these look to be hugely unprofitable. Of course the two below seem to have had drilling problems with sidetracks, which I could only assume might have been a fault or rock issue. Any thoughts on what's going on with these wells would be much appreciated. Thanks.
|250255||CV RA SU113;TOOKE 35-26 HC||
|250256||CV RA SU113;TOOKE 35-26 HC||002-ALT|
I noticed this recently and wondered the same thing.
I can't shed any light on why Aethon chose to drill these horizontal CV wells in this location. I can state a fact that I think is not widely known. Drilling horizontal Haynesville Shale wells is relatively simple as to landing depth. Keep in mind that the CV series of sands are a wedding cake of 1000' or better feet of potential landing zones that vary in thickness, porosity and permeability. There are about six or seven different CV sands that have been targeted in NW LA. Indigo Minerals has had success with horizontal CV wells in south Caddo, north DeSoto. Anyone who would care to look more closely at the CV sands can perform an internet search for past presentations by Indigo. The company published some detailed data in their press releases and presentations.
Thanks, Skip. So maybe they were wildcatting for oil. I guess if you could call it that.
I don't think they are after oil, not at those depths. There is a learning curve to the CV/LCV. Hopefully Aethon will master it.