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Permalink Reply by GJ Jasko on August 19, 2010 at 16:34

In EOG's 2nd Q earnings report (August 6) they presented a slide that said Crane et al averaged 27mmcfd over the first thirty days. Where did you get the 12-15 mmcfd figure?

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Permalink Reply by reallyoldguy on August 19, 2010 at 17:46

Some of the people, in Chireno, have reported these numbers from reading the wells meter.

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Permalink Reply by j garrett on August 20, 2010 at 2:17

They seem to have choked all their wells back in the area, probably due to low gas prices as you suspected. This is probably best for the mineral owners, as their gas will be sold at a higher price later.

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Permalink Reply by Les Bamburg on August 20, 2010 at 2:45

ROG, no - the TRRC does not require wells to be reduced in rate. There could be restrictions in gas infrastructure capacity (ie gas treating) resulting in the rate reductions.

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Permalink Reply by The_Baron on August 20, 2010 at 2:52

There is still some questions as to what rate will provide the best results over time. Just because a well will IP at a high rate doesn't always mean you should let it flow at that rate.

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Permalink Reply by reallyoldguy on August 20, 2010 at 5:57

THis seems to be a sginificant difference from the wells IP. Is it typical to see a wells flow rate reduced, by almost half, after 60 days?

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Permalink Reply by Les Bamburg on August 20, 2010 at 7:18

ROG, it is usual to see a well's production rate to decrease significantly within the first 2-3 months for Haynesville Shale wells that were produced in the past typical style.

Some operators have begun producing wells on smaller choke sizes initially and this has resulted in slower or flatter initial decline rates. Check Petrohawk's website for presentations that show some examples. Under this approach a well's initial rate may be restricted to 8-10 MMcfd rather than 15-25 MMcfd.

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Permalink Reply by nick waters on August 20, 2010 at 9:11

These answers seem very credible, but the pipeline take away at these locations is very limited at this time. I know of only one 8" pipe in the area, just west of Murray and about one mile from Crane. Enbridge is working hared to get a new 24" pipe to these wells as soon as possible. Additionally, CenterPoint is also working to get another East West pipe that will be laid close to these wells.

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Permalink Reply by reallyoldguy on August 22, 2010 at 17:11

Hey Nick! If memory serves me, correctly, you've got some interest in the Murray Unit! If so, congrats!!!

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Permalink Reply by GJ Jasko on August 21, 2010 at 9:56

Crimson has also put out info that they are choking back to get the ultimate amount of reserves possible from their gas wells. Looks like production will be at 35% to 45% of the IP.

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Permalink Reply by reallyoldguy on August 21, 2010 at 10:00

GJ: So, I guess this would mean, that ultimately, the decline will not be as steep and the well will pay out longer?

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Permalink Reply by GJ Jasko on August 21, 2010 at 10:07

That is correct ROG.

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