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Permalink Reply by Ben on December 12, 2012 at 7:01

The leases would have to have a "vertical" Pugh Clause in them with is certain more rare than the normal horizontal pugh clause.  The horizontal pugh clause would release all acreage outside the geographical confines of the unit, but you would have to have a vertical pugh clause to require the company to come back and lease deeper drilling rights.

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Permalink Reply by robert minton on December 12, 2012 at 14:03

Vertical pugh is not same as horizontal pugh.

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Permalink Reply by Checkmateking on December 11, 2012 at 11:06

It's almost a geological certainty any hydrocarbons underneath the Haynesville will be ever hotter and dryer than the Haynesville, can we finally put this bad rumor to rest?

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Permalink Reply by Frank on December 12, 2012 at 14:45

No, I want to keep hearing about it until they prove there is more oil down there than the Dakotas and South Texas combined.  I don't believe it, but desire they prove me wrong.

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Permalink Reply by kittycatmama on December 12, 2012 at 16:51

If the Davy Jones well ever gets completed, then McMoran will be able to show that drillling at extreme depths with extreme temps  is possible

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Permalink Reply by David Blaine on December 12, 2012 at 16:52

+- 300 rigs in the Dakotas, +- 300 rigs in South Texas, 20 rigs in the Haynesville. Its obvious where the oils at.

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Permalink Reply by kittycatmama on December 12, 2012 at 17:17

But didn't the poster say the rigs were going to Desoto Parish? So they aren't scattered across the Haynesville but localized in Desoto if poster got it correct

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Permalink Reply by Henry on December 13, 2012 at 0:58

I have no clue about these 17 new rigs, but I do think drilling will resume within the next 5 - 10 years.  Think about the numbers.  The Sabine Pass export terminal can handle 800 Bcfe/year (as reported by Tom Fowler in Energy Watch).  The new gas-to-liquids facility in Lake Charles can handle 300 Bcfe/year (according to press releases).  If I assume a Haynesville well has an EUR of 5 Bcfe, this translates into 220 wells per year, just to supply those two demands (based on the possibly optimistic assumption that the Haynesville Shale will be the sole supplier for those facilities).  Throw in the new chemical plants going into south Louisiana, and we should expect to see a robust drilling program within 10 years.

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Permalink Reply by Ben on December 13, 2012 at 3:46

Notwithstanding, each well still needs to be able to generate a decent return on investment and from some of the studies I've read, the price per mcf needs to be in the $6+ range.  Sooooo . . . we'll need a cold winter, increased economy (don't hold your breath), and continued change to natural gas from coal as the fuel stock for electricity.  Believe me, I hope it all happens.  I'm reading that the decline curves on shale wells are much steeper than earlier predicted, that is, they are declining more rapidly, so I'm not sure that won't cast a chill on further drilling.  I really hope the rumour is true but would like more confirmation.  Whose rigs are they?  Are they coming to drill for one or more operators?  Are they destined just for Desoto Parish?  And the list goes on.  Stay thirsty, my friends!

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