Maybe Bigger is Not Always Better--Recent PetroHawk Announcement

Included in the 62 operated wells that are currently on production are four wells being tested at restricted rates to compare the decline characteristics of the test wells to other wells in the same area that have been produced conventionally. The four test wells, which have been kept on a 14/64" choke since first production, had initial production rates of between 8-9 Mmcfe/d and flowing casing pressures of approximately 8500#. They have all exhibited shallower decline rates in both production and flowing pressure than the control set. The oldest well in the group has produced approximately 900 Mmcfe and has considerably higher flowing pressure than the control wells had at the same cumulative production. Further study of the economic and reservoir implications of this reduced rate method are needed before any conclusions are reached that would impact the Company's production practices.


I have posted numerous times that maybe flowing your horizontal shale wells at "Hall of Fame" rates is not such a good idea. Looks like there may be some truth to my theory after all.
Jay

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Long ago the La. Dept. of CONSERVATION set meaningful production allowables for individual wells. Guess what the purpose was. To maximize ultimate production from these wells.

Nowadays the big operators want their wells to "pay out" as soon as possible so they can get the "cream" and move on. At that point they sell their wells to smaller operators. Ultimately the % of O&G recovered is compromised.

Aubrey Sanders
Aubrey, sometime ago I saw a post from you which (I believe) said you owned interests in the Sentell Field subject to lease to Southern Star. I do also. This company is bankrupt and I got some hope when it announced some sort of combination with 2 other companies - that is, until I found out that they are also penny stock companies. Do you know anything about the situation, specifically about the company's claim of HA discoveries in Sections 16 and 17-T19N-R13W. Neilson Jacobs
There is no doubt Haynesville in the Township/Range you mentioned, it is the quality of the rock that is the problem, it will take much higher gas prices to lure an operator into this area, especially with the big expansion of the play to the south. Operators will spend their dollars elsewhere as of now, but it's time will come.
We identified this while testing vertical Haynesville wells and have followed this practice since day 1.
Besides a slower decline rate would you rather your gas be sold at current low prices or at a possibly higher price later?
The price is the price.........what assurance do you have that it won'r be lower later?
drillinginfo released some data and analysis on this topic for free. http://info.drillinginfo.com/urb/haynesville/uncategorized/2010/03/...
I'd take a higher EUR.
section 17 15n 11w has one of these 14/64th choke wells.
Here are some Petrohawk examples:

Petrohawk, Dehan 15 #H1 Well, Serial #239644, S15-T13N-R14W, DeSoto Parish, 7643 Mcfd, 14/64" Choke, 8396 psi Flowing Pressure
Petrohawk, Tullos 17 #H1 Well, Serial #239834, S16(17)-T15N-R11W, DeSoto Parish, 8349 Mcfd, 14/64" Choke, 8625 psi Flowing Pressure
Petrohawk, De Soto Police Jury 26 #H1 Well, Serial #239668, S35(26)-T13N-R14W, DeSoto Parish, 8689 Mcfd, 14/64" Choke, 8762 psi Flowing Pressure
Petrohawk, Huckabay 31 #H1 Well, Serial #239975, S6(31)-T12(13)N-R10W, Red River Parish, 8613 Mcfd, 14/64" Choke, 8450 psi Flowing Pressure
Petrohawk, Albritton Cattle Co 10 #H1 Well, Serial #239086, S10-T13N-R11W, Red River Parish, 6929 Mcfd, 14/64" Choke, 8350 psi Flowing Pressure
Petrohawk, Matthews 17 #H1 Well, Serial #239157, S17-T13N-R11W, Red River Parish, 8014 Mcfd, 14/64" Choke, 8964 psi Flowing Pressure
Jay did anybody happen to mention how far east they are going to go in Natchitoches Parish? Golddonna specifically? Thanks.
Les, thought you might be interested in the production figures from the first well on your list, the Petrohawk, Dehan 15 #H1 well:

08/09 176252 mcf
09/09 229646mcf
10/09 237279mcf
11/09 179680mcf
12/09 239356mcf
01/10 228203mcf

Hopefully, the level trend will continue, but I guess it will be awhile before any firm conclusions can be reached.

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