Replies to This Discussion

Permalink Reply by Les Bamburg on May 28, 2009 at 4:02

Ray, please see the following:

Nadel & Gussman, Franks 17 #2 Well, Serial #238018, S17-T19N-R14W, 2208 Mcfd, 25 BCPD, 1800 psi, 15/64" choke
Chesapeake, Prescott 35 #H1 Well, Serial #239214, S35-T19N-R13W, 5221 Mcfd, 0 BCPD, 3752 psi, 22/64" choke
Matador, Hall 9 #1 Well, Serial #238345, S9-T19N-R15W, 2600 Mcfd, 25 BCPD, 2200 psi, 24/64" choke
KCS, Tri-State Realty 28 #2 Well, Serial #238771, S28-T19N-R14W, 3273 Mcfd, 1 BCPD, 2360 psi, 22/64" choke
Chesapeake, Percy Arnold Sharp III 7 #H1 Well, Serial #238043, S7-T18N-R15W, 5100 Mcfd, 0 BCPD, 2616 psi, 22/64" choke
Exco, Sharp 1 #1 Well, Serial #239351, S1-T18N-R16W, 8600 Mcfd, ? BCPD, 4100 psi, 30/64" choke

There are many factors impacting the initial flow rate including shale depth (pressure), clay %, permeability, porosity, condensate production, frac design, etc. Although rates are lower than areas to the south, wells may still have good economics due to the lower capital cost associated with this part of the play. Initial rates seem to be improving as evidenced by the Exco well.

Permalink Reply by Skip Peel - Mineral Consultant on May 28, 2009 at 4:06

Les. Any round numbers on the well cost differential that you mention?

Permalink Reply by Les Bamburg on May 28, 2009 at 9:54

Skip, EnCana stated the shallower parts of the play in Texas could cost $1.0 - $1.5 MM less in drill and complete costs.

Permalink Reply by Skip Peel - Mineral Consultant on May 28, 2009 at 10:02

Thanks, Les. I am thinking specifically of north Caddo Parish. If the difference in TVD is relatively modest between say north Caddo and Desoto and all other cost factors are roughly equal, how would the wells be cheaper in north Caddo?

After hearing of the Twin Cities lease offers from Cathaus and others, I went back and reviewed the north Caddo leases that TC has recorded in the last 60 days. There are a fair number in 18N - 15 & 14W. Small acreages, mainly residential lots, although there are a few in the 30+ acre size. I find no leases recorded during that period for tracts in the 19N Ranges.

Permalink Reply by Les Bamburg on May 28, 2009 at 16:18

Skip, it is more the case of less pressure and temperature allowing for less expensive materials. Also probably requires less proppant because the formation stresses are lower. Finally the CO2 & H2S content are lower as you move north in the play.

Permalink Reply by Skip Peel - Mineral Consultant on May 29, 2009 at 12:56

Electro. How the decline rate varies with the formation pressures in different areas of the play is beyond my pay grade. However, the decline rate projections from the very beginning for HA Shale wells were in the 75-82% first year range. One topic that has gotten little debate but does get mentioned occasionally is the ability to refrac a well once production drops below commercial limits. Jay has stated previously that production from a refrac may be as high as 75% of the original IP. Looking on the positive side of high initial decline, once shale gas production represents ~50% of annual national produciton, the extreme swings in price should be history.

Permalink Reply by Les Bamburg on May 29, 2009 at 17:11

Electro, it is my impression that refrac's are really only applicable to vertical wells rather than horizontals. This is the reason they have been used in the Barnett Shale core area that is 400+ ft thick and was primarily developed with vertical wells. Some operators have even stated they do not believe that refrac's are economic for the Barnett Shale.

Permalink Reply by Les Bamburg on May 29, 2009 at 17:21

Skip, the variation in initial rate, flowing pressures and decline curves are all a function of the differences in rock properties for the difference regions of the Haynesville/Bossier Shale especially the clay content.

This is the reason the wells in Texas have lower initial IP's but could potentially exhibit decline curves similiar to the Barnett Shale wells.

Oh, I don't think refrac's are a real option for the Haynesville Shale wells.

Permalink Reply by RAY on June 12, 2009 at 14:06

this was taken from another post..but it is a breath of fresh gas..
The Crestview well is the 1st to crack 10 MMcfd in T18N. This well plus the Exco Sharp well shows the better operators are getting a handle on the northern portion of the play.

Permalink Reply by Les Bamburg on June 12, 2009 at 16:09

Ray, that post looks really familiar.

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