2010 Unit Application features/trends I've noticed upon review, year to date.

This morning I woke up early and used it as an opportunity to review the Unit Applications that have been filed for 2010. Several things jumped out at me after completing my review:
1) Petrohawk has been very busy. A very large number of the Unit Applications for 2010 so far have been Petrohawk's.
2) As Les B has mentioned before, Devon filed for four Unit Applications in the Caddo Pine Island Field, well north if I-20. They created Haynesville/Smackover/Cotton Valley units. Is there much Smackover production in Caddo Pine Island???
3) Many of the Operators (Chesapeake, Petrohawk, XTO, Encana, Comstock, etc.) are beginning to file for alternate unit wells in a number of sections in the play. The volume surprised me as there are still so many undrilled sections, but it should lead to multiple Hauynesville wells in many sections.
4) Chesapeake filed an Alternate Unit Application for a Horizontal Cotton Valley well (Skip, I think it's the real thing) in T14N,R10W, Section 10. The Conly 10-14-10H-1. Don't recall CHK drilling many horizontal Cotton Valley wells lately, but it would be a nice trend to see develop.

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A person at STR explained to me that the process takes so long that they just go ahead and apply for the alternate wells and then whenever they're ready, do the well permit which only takes a few days.
what is the difference between a preapplication and an application?
Good morning, Spring Branch.

1) Yes, Petrohawk has 25 HA unit applications on the 2010 hearing schedule but they represent only 27 total units. In the same period Chesapeake has 6 HA apps for a total of 13 units and Encana has 7 for a total of 16. 23 of Petrohawk's apps are for a single unit. When the Hawk generated additional capital through a stock offering and an asset sale in the Fall, we speculated where that money would be invested. I thought they would spend it in the northeast and the bulk of the new units are in the Red River - Bull Bayou and Lake Bistineau/Sibley fields. There is a Cedar Grove unit and a Converse unit in 13W Ranges and three units in 12W Ranges (three separate fields). The other 22 units are all 11W to 9W. Petrohawk obviously likes the eastern third of the Play.

2) Not that I am aware of.

3) IMO, the significant number of alternate unit wells represent efforts to experiment with unit completion designs. In the Barnett, some companies are drilling and fracing side by side horizontals in an effort to increase EUR. With depressed nat gas prices, I could imagine no other reason to drill these wells.

4) Maybe, maybe not. The Woodardville Field Order 990-B-57 (1/8/2008) redefined the CV in this unit as 9,730' to 12,925'. IMO, this depth definition includes the HA zone.
As to #4, I realize that I probably made a dumb assumption. Since there is NOT an existing Haynesville unit well in Section 10, but only the Conly 10-1 Cotton Valley well, I assumed you first must have a Haynesville Unit well before you can have an Alternate Unit well. Throw logic out the window! Like Jay says, when we see the TVD, we'll know.
Darn, SB, I thought you were poised to start a debate about which area of the Play was the most productive to date before I left for Christmas. Petrohawk seems to be making a big bet with limited capital that the east and particularly the northeast is currently the best open acreage. It would appear that to some degree Chesapeake, Questar and XTO agree. We seem to be developing multiple "sweet spots"!
Oh, that I had any acreage to trade, oh shalefull one. Ain't much "open" acreage in Lower DeSoto. And as you have so thoughtfully pointed out in the past, "thickness ain't everything". Think north Caddo. Question: Are the HA/BO combined EUR's you mention likely to be greater than that of the best HA Only areas?
Skip, the stacked areas should have EUR's in the 10-12 Bcf per 80 acre range but it will require two horizontal wells per 80 acres.

Some of the very best of the Haynesville Shale near the DeSoto/Red River/Bossier triangle may approach 9-12 Bcf EUR's per 80 acres.
Thanks, Les. I thought they might be roughly equal.
Les,

I'd love to know what points form your triangle.
me too.
This would indicate that from WI point of view, the sweet spot around the Red River (16,15,14-11) might be best because of cost. From a RI point of view, the better "stacked" areas of the play might be best except for the time value of money, assuming it might take a good while to fully develop the Bossier Shale. From my perspective, both areas have a green $$$ tint to them.
Les, Skip,

Are you guessing that the lake bistineau field "might" become the next sweet spot with 10-12 bcf per well???

LT

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