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Permalink Reply by Dion Warr, CPL on January 18, 2009 at 12:48

O&G will have to get on the stick and continue to drill wells to maintain leasehold already acquired in the HS from 2006-2008.

The 200 permitted wells will serve to HBP or HBO only 128,000 acres of leasehold, if drilled prior to the expiration date (180 days). Each well will take approximately 45 - 80 days to complete (vertical vs. horizontal) completion. Drilling existing leasehold will remain a continuing priority throughout 2009 and 2010, particularly until NYMEX/Henry Hub prices improve.

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Permalink Reply by Bruce on January 19, 2009 at 15:44

Hey Parker, once again a fine post. I saw today that Goldman Sach's is predicting a "sudden and volatile" upswing in oil prices the second half of the year. While I don't wish anything bad on anybody as far as higher gasoline prices it should cause natural gas prices to rise dramatically also which would be great for all my shale friends. Thanks Parker, have a nice day.

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Permalink Reply by Les Bamburg on January 19, 2009 at 17:07

Parker, great post again. The 200 HS drilling permits is close my count as I show a total of 258 Haynesville Shale wells that have been permitted (both drilled and undrilled) in Louisiana alone.

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Permalink Reply by Bobi Carr ("parker") on January 19, 2009 at 22:08

I've been reading the unit applications, but EXACTLY where are the permits shown?

After the Unit is approved, do they have to have a separate permit approved?

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Permalink Reply by Dion Warr, CPL on January 20, 2009 at 2:58

Parker:

If you have downloaded all the plugins suggested by LOC on the SONRIS website (although all you need for this procedure is Panagon IDM viewer), simply click on the Document Access - Document Images option on the left side of the page, and enter the well serial number in the appropriate field (at the bottom) on the Java-based fill-in form. The well permit (along with maybe other documents tied to the well) should pull in the left-hand window below the form. Generally the well permit is first on the list. The initial permit will have a plat attached showing the well location. If the viewer does not work (you get an 'X' in the upper-left corner of the viewer window), call the SONRIS help desk; they will walk you through the resolution process. You can download the scans by ising the Download link, but it slows the process down considerably. Having a functioning viewer speeds up the process dramatically.

A separate well permit (and approval) is required for all new wells. The field order does not authorize the well to be drilled, although the proposed unit well (or alternate well) may be named in the field order.

Also: keep in mind that well permits may be issued prior to the unit being approved. This is very common for discovery wells (wildcats) where the field either doesn't exist or has not been previously unitized at the given strata (a la 'ununitized Cotton Valley stringer). Remember the notices that you have received in the last month? Those units are not approved yet.

On a separate note: thanks for keeping us informed.

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