What happens after a year?

Four questions for those who know far more than I do...

#1) Considering a well's production drops off so much so quickly, what happens to a well after a year or more? Does it just stop producing at some point?

#2) How productive is refracing? It can't return a well to original production, right?

#3) I've heard the HA is really "dense." (I read some news article somewhere...) It mentioned that a single unit can support eight wells? Is that what will happen to all units eventually, many years down the road?? Doesn't that seem a little crazy, or can the shale really support that? (Maybe we don't know yet?)

#4) What happens for the mineral rights owner if the operator doesn't drill within the first three years? 

Thanks for any help on these questions... Enjoy the weekend.
 

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landownerPermalink Reply by Checkmateking on March 6, 2010 at 4:00
The well tapers off until it hits what is called the "flat line" of the hyperbolic curve, which could last for many years.

No refracing won't return a well, a shale well. to original production, you will get a shirt burst then it will decline quickly, not much of an incentive at the costs of these massive grac jobs

The jury is still out on optimum unitization, I would think a minimum of at least 6 wells per section, and yes I think they could support 8 with no problem.

If the operator doesn't drill in the time specified in a lease, and they do not have an option clause which they pick up then the leasing contract is finished and the owner is free to lease again.

Oil & Gas ProPermalink Reply by Les Bamburg on March 6, 2010 at 4:35
Frank, some of my reply may be repetitive to CMK's excellent initial response.

#1) I have attached an example decline curve for a Haynesville Shale well for the 1st five years. Operators have said a typical well will produce for over 30 years before reaching its economic limit.

#2) Refracing is not technically feasible for horizontal Haynesville Shale wells. Refracing is an option for vertical wells in areas such as the Barnett Shale where much of the original core was developed with vertical wells.

#3) Some units may have 8 wells (80 acre spacing) but others could have only 4-6 dependent upon economics. Remember some areas have both Haynesville Shale and Bossier Shale present and could require 16 horizontal wells for full development.

#4) Nothing to add.
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landownerPermalink Reply by Checkmateking on March 6, 2010 at 5:49
What I wouldn't do with for one of those stacked units with 16 horizontals fully developed and gas back around the 10 dollar range, talk about mailbox money.

Les, do you think will drill a Haynesville well, scoot the rig and drill a bossier from the same location? It seems like it would make a ton of sense? Especially from an economic and infrastructure point of view.

Oil & Gas ProPermalink Reply by Les Bamburg on March 6, 2010 at 6:26
CMK, I think it will be 1-3 years before we get a better understanding of the approach of each operator for drilling in a pad mode. A single pad may handle 4 to 16 wells which could be drilled into 1-4 sections dependent upon location. I definitely think they will utilize the same pads for both HS wells and BS wells. It is unclear if the operator would drill only Haynesville Shale wells in the first batch or, as you said, alternate between HS wells and BS wells. It will be difficult to follow because the well permits do not distinguish between the Haynesville Shale and Bossier Shale.

EOG is already drilling multiple wells in a couple of units and stated these are a mix of HS & BS wells.
Permalink Reply by Parkdota on March 6, 2010 at 5:56
Les, I know at some point there was discussion about the direction of the wells/drilling, and I believe the verdict was that most run north/south. The reason I'm saying that is to ask this....Encana told us that they will drill more than one well on one pad, or that is what I believe they said. It seems to me that if one were to maximize the wells then they'd space them the exact same length from west to east and then drill north to south or vice versa. How can they still drill north to south or vice versa if they are doing it from the same pad? Also, 10-14-14 has asked permission to drill from our 9 bc they hit a fault line in their initial drill. How is that going to work if most wells are drilled N/S seeing as how 10 is east of 9?

landownerPermalink Reply by Checkmateking on March 6, 2010 at 6:03
I think Encana has done alot of experimenting when it comes to horizontal directions, east west, north south, diagonal etc. Les will know more.

Oil & Gas ProPermalink Reply by Les Bamburg on March 6, 2010 at 9:46
CMK. it is interesting because EnCana has never given any insight into their reasons for the different well lateral orientations. I can only guess it may be related to faulting or some other geologic feature.

landownerPermalink Reply by Checkmateking on March 6, 2010 at 10:08
I can only surmise they were experimenting, if my memory serves correct I believe the east-west and due laterals had lower IP's
Permalink Reply by Parkdota on March 6, 2010 at 10:37
They definitely have done some experimenting from what I can tell. I know they are big believers in seismic data to aid their drilling techniques. Btw, the sec 10-14-14 where the fault line was hit was not Encana. From what I can tell in 14n 14w Encana has got their "stuff" together and is doing well. Everything I'm seeing them do in 14n 14w is N/S laterals. I know they also just did a 12 frac on 9. We've been real pleased with them. I think they also have a pad on 6 or 7 - 14n 14w and are using it to drill in both 6 or 7. They seem to be saving money with this technique. Now that I think of it, I bet they allow the operator in 10-14-14 to put a pad in the NE of section 9 with them getting to use it as well thus benefiting Encana and the other operator. I'm guessing this way they could have 2 pads for 4 wells a piece with the cost of only one pad.

landownerPermalink Reply by kittycatmama on March 6, 2010 at 21:01
sec. 21 of 15/14 Desoto is an Encana east west lateral that was an experiment and a way to miss the fault. Based on its production, doubt Encana will be doing more of those.

Oil & Gas ProPermalink Reply by Les Bamburg on March 6, 2010 at 6:34
Parkdota, I believe most of the HS & BS wells will be drilled in a north-south orientation unless local faulting interfers with the pattern. Multiple N-S wells can be drilled from a single pad by angling the "vertical" section of the well before making the bend. This is same way a well can be drilled from Section 9 into Section 10. A pad located near the intersection of four section corners could be utilized to drill N-S wells into all four sections.
Permalink Reply by Parkdota on March 6, 2010 at 6:47
Ah, that makes perfect sense...thanks. When I hear the term vertical I took it to mean literally vertical. Encana initially said they'd drill 4 wells from the pad in the NW portion of 9-14-14 and have just finished one for HBP. I'm guessing since they have that pad in the NW of sec 9 then maybe they'd put one down in the SE of sec 9 for the remaining wells.

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