Despite low gas prices, drilling of Haynesville Shale continues
Posted: Sunday, May 2, 2010 12:13 am | Updated: 10:44 am, Sun May 2, 2010.
The price of natural gas might fluctuate widely, but a major player in the quest to secure the energy source for years to come has been steadfast in its regional investment and exploration activity.
Chesapeake Energy has staked a big claim in one of the nation's largest natural gas fields — the Haynesville Shale — and anticipates advancing that stronghold for years to come, according
to Katie McCullin, spokeswoman for the energy company. "We expect to be operating 41 rigs by the end of the year" in the Haynesville and Bossier Shale areas of Northwest Louisiana and
East Texas, she said. The company has been working with about 120 different land brokers to secure drilling rights to the leases Chesapeake wants in the region.
While the bulk of drilling activity so far has been in Louisiana, McCullin said the company also has been active in East Texas, especially in Panola and Shelby counties with some activity
in Harrison County. Chesapeake is the most active driller in the U.S. of independent natural gas exploration and production companies. McCullin said the company already has invested about $5.3 billion in the Haynesville Shale area. "We're currently producing more than 550 million cubic feet of natural gas per day and expect to be producing approximately 970
million cubic feet per day by the end of the year," she said.
She said energy exploration is much more high-tech than in the days of East Texas wildcatters. McCullin said technology allows drillers to have a good idea of what is beneath the surface before it moves a rig on site and begins to drill.
In addition to Chesapeake's drilling operations, the company has subsidiaries operating in Marshall — MIDCON and NOMCA. MIDCON makes and installs compressors in the pipeline network throughout Haynesville, Bossier Shale and other formations, and NOMCA produces the drilling equipment. Chesapeake is headquartered in Oklahoma City and has corporate offices in Shreveport.
McCullin said the company uses horizontal drilling technology to reach the natural gas trapped inside the shale. The process involves drilling down vertically before gradually turning the pipe
— 12 inches per 100 feet — to get it horizontal at the right point. Until the past couple of years, the production of oil and gas in East Texas and Louisiana has been obtained from the conventional subsurface reservoirs that are in sandstone or limestone formations, McCullin said.
The Haynesville Shale involves drilling to depths below 10,000 feet throughout most of the region.
In addition, McCullin said 90 percent of the fracturing water comes from surface water, and the company has a dedicated water management team seeking surface water. In addition, she said thecompany is one of the first to be awarded a water permit for the Red River, which should be a great source, especially during the spring.
CEO comments
Aubrey McClendon, Chesapeake's chief executive, said the company's geologists have been studying the potential of the Haynesville Shale for several years. In a prepared statement, hesaid every square mile of Haynesville Shale contains an average of 180 billion cubic feet of natural gas.
The irregularly shaped area that Chesapeake has targeted for leasing in the Haynesville Shale of about 3 million acres is internally referred to as "the blob," he said. "The blob's outlines have evolved over time, but the same basic area where we have focused our leasing is about 90 percent unchanged," he said. At one time in 2008, McClendon estimated his company alone had about 800 landmen working the region attempting to secure mineral rights for future drilling.McClendon said the market and supply and demand will play a major role in the development of the Haynesville Shale. When the price is down like it has been in recent months, activity might drop. But his company and others have indicated with their spending plans they expect big things from the Haynesville Shale.
McClendon said the producing shale is found at about 11,500 feet on average and takes larger and more powerful rigs than those used in other regional formations such as the Travis Peak and Cotton
Valley.
the form of compressed natural gas for cars, the market for natural
gas could accelerate in coming years, he said.
"If that market doesn't develop, then I think the Haynesville will not develop as quickly," McClendon said. "I kind of see the Haynesville as this enormous big gas resource and its tempo of
development, I think, will be determined by the growth in gas
demand, and if that gas demand skyrockets, then I think production
can do the same."
http://www.news-journal.com/news/business/article_8ea89f65-978d-5b3...
Tags: Chesapeake, Energy, Haynesville, Shale
Views: 46
Replies to This Discussion
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Permalink Reply by Parkdota on
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"Aubrey McClendon, Chesapeake's chief executive, said the company's geologists have been studying the potential of the Haynesville Shale for several years. In a prepared statement, he said every square mile of Haynesville Shale contains an average of 180 billion cubic feet of natural gas."
I would assume that the estimated 180 bcf natgas encompases all shales/formations per square mile? Maybe they're counting both the HA and BO combined in that number.
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Permalink Reply by king john on -
jay, in regard to recoverable gas, has anyone that you know of started using stimulation techniques? at what point would a well need to be stimulated? other than re-frac, what else can be done to increase production?
kj
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Permalink Reply by Les Bamburg on -
Jay, actually CO2 injection is only used in very limited number of oil reservoirs. That may increase with the incentives to store CO2 but there are still only a limited number of potential target reservoirs.
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Permalink Reply by Les Bamburg on
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KJ, CO2 injection is not an option as it would not increase the recovery in the Haynesville Shale Formation.
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Permalink Reply by Les Bamburg on
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KJ, refracs are not a viable option for multi-stage horizontal frac'ed wells.
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Permalink Reply by Les Bamburg on
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Parkdota, the 180 Bcf/Section gas-in-place would apply to the Haynesville Shale alone.
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Permalink Reply by adubu on
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jffree1, Pardota, or ShaleGeo---Has CHK or any other company started in unit drilling of addition wells yet vs drilling one well per 640a unit to HBP the acreage. Does any one know of any multiple shale H wells in same gas unit in the Haynesville? The only one I know of is in Nacogdoches County by EOG in the Hassel unit near Chireno in the Bossier Shale
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Permalink Reply by Henry on
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adubu,
Check out EOG's operations in the Trenton Field. In some sections, they are up to their 4th or 5th well, I believe. Also, El Paso and EXCO are drilling multiple well in many sections. However, with few exceptions (like EnCana's recently permitted gas factory), the big three (CHK, HK, and SWEPI/EnCana) are mostly drilling to hold leases for now.
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Permalink Reply by Les Bamburg on
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Adubu, check EOG, EXCO & Questar in Louisiana. Also EnCana will pilot one or two multi-well Haynesville Units in Louisiana this year.
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