Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on February 20, 2015 at 13:08

Jay, this application for alternate cross unit lateral wells is for 4 horizontal wells.  I don't know about "pressured wells".  We'll have to wait and see.  The usual reason for a company to choose horizontal wells over vertical wells is low permeability.  I will be interested to see the True Vertical Depth (TVD) once the wells are drilled.

Vanguard Operating appears to be new to Louisiana and I'm unsure concerning their experience in horizontal completions.  I think this will be their first operated LA wells.  They acquired their currently operated wells and leasehold from Hunt Oil Company in the last 6 or so months.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellorg6?...

Permalink Reply by Skip Peel - Mineral Consultant on February 20, 2015 at 13:42

Jay, these existing units are quarter section, 160 acres.  The spacing plat, when approved,  would allow for horizontal cross unit lateral wells with a maximum theoretical length of 4,620'.

Permalink Reply by Skip Peel - Mineral Consultant on March 3, 2015 at 3:20

Excerpt from a financial analyst covering Vanguard:

VNR's Q4 Adjusted EBITDA, distributable cash flow and production were in-line with the preliminary unaudited results provided on February 17. There were no changes to VNR's recently announced 2015 and 2016 budgets and guidance. VNR has set 2015 and 2016 capital budgets of $114 million and $117 million, respectively, compared with $142 million (including $26 million of growth capital) last year.

Roughly 50% of the 2015 capital budget is allocated to non-operated vertical wells in the Pinedale Anticline, 25% to the East Haynesville assets (both vertical and horizontal wells and several recompletions) with the remainder for maintenance activities in its other operating areas.

VNR estimates this year's Pinedale wells will generate a ~25% pre-tax return based on current strip commodity prices and assumed $3.8 million well costs, which do not include the benefit of potential cost reductions with its operated partners in the play assuming well costs of ~$3.5 million this year.

VNR estimates both its vertical and horizontal East Haynesville wells in 2015 could generate pre-tax returns of 50+% based on current strip commodity prices and assumed costs of $2.25 million for vertical wells and $7.5 million for horizontal wells.

Permalink Reply by obed w odom on May 5, 2015 at 3:58

These 4 cross-unit horizontal Upper Haynesville wells have been approved by the Commissioner of Conservation in Field Orders 105-L-31 and 105-L-32, issued 4/29/15 and effective 3/31/15. Vanguard said in a recent press release that they plan to begin drilling one or more of these wells in the third quarter of 2015.

Permalink Reply by Eric Polansky on May 5, 2015 at 17:34

It's good news. We finally get to see some movement/action and Claiborne again!

Permalink Reply by Skip Peel - Mineral Consultant on May 8, 2015 at 3:31

Eric, approval of a drilling unit does not come with a requirement to drill a well.  It is certainly a positive turn of events but the unit application is relatively simple and cheap.  On the other hand drilling one or more horizontal wells is a very big step for a small company such as Vanguard.  If their projections for investment in the East Haynesville Field have not changed since last stated they are allocating about $28,000,000 to their development efforts.  That's a lot of money to you and me but a drop in the bucket for a company contemplating horizontal wells and associated infrastructure.  That amount, if everything were to go just right, would drill 2 or 3 wells depending on the other working interests.  We will all be interested to see if Vanguard follows through with one or more well permits and then brings in a rig and spuds a well.  It is possible that forming these drilling units is part of their effort to attract a partner with deeper pockets and more horizontal development experience.  We can all keep our fingers crossed.  Here is a new unit application for Vanguard in the East Haynesville Field.

http://ucmwww.dnr.state.la.us/ucmsearch_070611/UCMRedir.aspx?url=ht...

Permalink Reply by Eric Polansky on May 8, 2015 at 3:44

Thanks for the update, I was just referring to companies still having interest in the area I know it takes a while, and a couple bucks .. Jk it's just good news for Claiborne

Permalink Reply by Skip Peel - Mineral Consultant on May 8, 2015 at 3:46

I appreciate your optimism, Eric.  Mine is somewhat tempered by experience.  Cross your fingers but don't count any chickens quite yet.

Permalink Reply by obed w odom on August 6, 2015 at 10:16

Vanguard has now permitted the above cross-unit horizontal well, the HA RC SUI;DEL GREEN 8-17 HC, with surface location in section 8 T23N R7W and bottom hole location in section 17 T23N R7W. It will have about 4632 feet of lateral in the formation.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

Permalink Reply by tony allen on August 6, 2015 at 10:46

Obed, the location is ready for the rig but it was still on the Hightower last Thursday. They had to sidetrack the well after getting stuck in the lateral. Vanguard stated in their webcast that they were satisfied with the results of the W.T. Owens well.

http://edge.media-server.com/m/p/ow6jcty2/lan/en

Permalink Reply by obed w odom on August 7, 2015 at 4:42

Tony, thanks for the info and for the link to the Vanguard presentation. I listened to it and thought they sounded upbeat about their East Haynesville operations. We should know more fairly soon I would think.

Permalink Reply by obed w odom on June 10, 2015 at 18:39

SONRIS shows that Vanguard has permitted a well, the W.T. Owens No.2, with a very short lateral in sections 13 and 14 of T23N R7W. This is a 10900' try for the "non-unitized Haynesville". The surface location is in section 13 and the proposed bottom hole location is about 873 feet away in section 14. Don't know why they aren't drilling one of their already approved cross-unit laterals.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

• ‹ Previous
• 1
• 2
• Next ›
• Page