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Permalink Reply by Jimmy Stiles on March 16, 2010 at 5:31

Mr. Martin,

I have been interested and researching that myself and my best guess is that they will proceed with units they designate using their drilling data as "core units" (i.e. those screamers in the heart of the play) to get those HBP before the leases expire and then work their way out towards those (expected to produce, but at a lower rate) on the periphery of the play. Unless there are other mitigating factors possibly such as combo plays or something of that nature. I am sure that others on here will be able to provide a more definitive answer. And as for drilling a unit for sure if it has been planned, I would hesitate to say that from what I have been reading here and in some other articles online and barring some rather extreme circumstances, my feeling is that if your unit has been planned, it will get drilled.

JS

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Permalink Reply by Skip Peel - Mineral Consultant on March 16, 2010 at 6:35

Frank. There are far too many factors to distill into a single simple answer. No, all units do not get drilled. There will be units formed on the boundaries of the Play that will be proven uneconomic before a Haynesville well is drilled. The best example of this is the 20N HA units. There are 4 in 16W, 4 in 15W, 8 in 14W and 2 in 11W. There are vertical wells completed or nearly so in S25 & 35 of 11W. All the other units have no HA well. Units formed in areas where there is existing proximal economic production would obviously stand a much better chance of being drilled in the near term if they are not already Held By Production. There will be a few units in proven economic locations that will go undrilled for some period of time owing to legal issues.

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