Expert: James H. McConnell, CPL
Date: 8/2/2008
Subject: Haynesville Shale play in DeSoto Parish,LA

Question
Mr. McConnell, a couple of years ago, our family leased our property in Desoto Parish,LA (Section 13, T14N-R13W) to Winchester Production (now EXCO Resources). The leases and bonuses were fair for the time and wells are producing nicely (we like the "mailbox money"). I realize we are already locked in on the lease we have as it is held by production, but I'm wondering what the Haynesville shale will do for production. In your opinion, will it affect production at all? Can vertical wells be re-completed as horizontal wells? Is this feasible for a company to do so? How does EXCO shape up with the big companies like Cheasapeake? Also, the horizontal wells seem to be very expensive to drill but the possible production seems to be worth it, but their depths are about 10,000 to 11,000 ft. much the same as the vertical wells there already. How much more production can be accomplished from a horizontal? Is the increased production from the increased surface area from the lateral? By the way,not too far from our property there is land owned by someone with your last name. Any relations? Thanks for your help responding to my rambling post, Cannie


Answer
You have read a lot of information, but you don't really get the overall picture yet. The Haynesville shale in 14n-13W is probably 11000-12000 feet. When they drill a horizontal well they add a lateral of about 4000-6000 feet, making total depth around 15,000 to 17,000 feet.

The wells cost about $6.5mm to drill and complete and they should average 6-6.5 BCF per well. The completions from the horizontal wells are from 6.5mmcfd to 18.5mmcfd. At $10.00 per mcf that's $60-65mm revenue per well or close to $600mm per unit. Yeah, it will affect the production in the unit. If you like those Cotton Valley wells, you will love the Haynesville wells.

The Haynesville Shale has porosity but no permeability, so a vertical well will do very little after initial completion. They are drilling vertical wells to test the rock, because this is a whole new ball game and they are learning while drilling. Once they have the data they need to understand the reservoir rock under their lease block and can plan the multi stage frac jobs accordingly, they will commence their drilling program in earnest. As of now, they are looking at 8 wells per unit or 80 acre spacing. This can change over time and experience. As far as reentering a vertical wellbore and drilling a horizontal leg, they will do that. They will drill several laterals at one time from the same pad and frac them at the same time to consolidate costs.

For the first time in my career, this business has thirty to forty years of work laid out for itself in developing these shale plays. They will run these things with real efficiency.

McConnell is the 26th most common name in America. I have family in Shreveport and Red River Parish.


Buck

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These people seem to forget that he was banned from this site! As ignorant as I have been on numerous occasions , I haven't even been banned from the site! Had a couple of team meatings with "H" but thats about it.He is badgering Jay again and these well meaning unknowing people are feeding that.
Who is pitting Jim against Jay. Read their comment walls for crying out loud! And I agree wholeheartedly that you are blessed.But not because of CPLJIM!!!!!! I may have to get the kool-aid out on that one. You are a warm (most of the time) kindhearted person that sees the good in all , until you misunderstand someone and throw them under the proverbial bus like you did me. HA!HA! Just a little shot for old times sake.

I know you don't believe me but I do still care for you as a person that used to spend time conversing back and forth with each other on a regular basis. Those times may be behind us but I will continue to respect you regardless of the situation.That being said , Mr. MAC does what he does. Jim and Jay both work for or with the O&G's , however you wish to explain it. They make money by using their expertise in their respected fields, period ! If you feel that CPLJim wouldn't gobble up your minerals then he wouldn't be a good CPL now would he ? He has been admonished for advertising(without paying for it in advance) as his comment wall will show.

This is a mute point tho. I just wish his deleted comments could magically reappear so you could read the disgusting mess yourself! Especially when he was derogatory toward women. I am sure you would have gotten a big kick out of that if you would have read it.
Anyway , that is his actual site if you need to pay further homage to him. Too the old timers on this site, that saw all he had to offer , it certainly looks ridiculous tho.
Hey Snake I like your new logo. You need me to recomend a good "charm school".
Any suggestion would be appreciated at this point here in lala land! HA!HA! Your pic looks like you may be all out of good suggestions! HA!HA!HA!HA! Bad thing about this crap is that I will get blamed for your picture! Can't a guy catcha break?
The picture relates to my Cherokee name. Remember back around the time when the movie "Dances with Wolves" came out and the joke soon came about the way Indians get their name. Getting high on drugs in a tee pee and your name became the first thing you saw when emerging from the tee pee. This picture is in reverse because of censorship. The Dale Carnagie course "Making Friends and Influencing People" would be a good read for charm school.
I will try to pick that one up next time I get out of the asylum!
I live on the other end of the street from the asylum in Pineville.
I am so glad you brought up Mr. Ed , that adds to your sense of not having any idea about who you think is who. For those of you that can remember, before his post was deleted ,he talked about someone performing a certain sexual favor for him leasing their minerals for them 2 years ago! You must have missed that conversation. That is the conversation that mean old belittling Snake jumped Ed Hill! Sorry about that ! It may have eventually been a very informative thread.HA!HA!

I used to be bothered by this thing that you do but I am beginning to feel sorry for you. You are so engulfed with making everybody play nice that you have become delusioned in what you read.By the way , just for future reference. A private message is given in private , as in top left hand corner of the board.That is were private conversations take place , not on your comment wall. If I wanted to leave you a comment on your comment wall,since we aren't friends anymore I cant leave you a private one, I would be forced ,against my will, to see other comments that had been left by previous posters. You make it sound so dirty , to read other peoples comment walls. Another by the way, you can set your page up to make comments have to be approved before they become "public".

I surrender! These guy's that you hold so dear, are angels and I made up every single thing that I have ever said about either one! Not really but it reads better this way. Anyway , I will try my best not to snicker whenever his highness speaks and if he gets gonged again I promise not to belittle you for looking so silly for taking up for him and belittling me.HA!HA!

I will continue trying to inform as many as I can as honestly as I can. Even if it ruffles the feathers of a few birds.If I were you I would just be cautious about heaping too much praise on two dudes that have become quite wealthy at the expense of mineral owners everywhere. If I am wrong about someone I am man enough to admit it and say I am sorry. Ben done several times on this site. Have you ever been wrong Ms. Ann ?

I will copy and paste the comments to you from your idol so you wont have to pry in such a sneaky way. Good Evening Ms. Ann
Permalink Reply by Two Dogs 26 minutes ago
I live on the other end of the street from the asylum in Pineville.

Maybe we have met then ! HA!HA!
All the nuts were turned loose back in the early 70's, they became the homeless that we know today. Central State Hospital has more employees than they have patients.
Nice to see some classrooms aren't overcrowded. Sorry , I really should try to avoid making political statements. They can really get a person in trouble , or so I have heard.
Snake if you don't stand by what you believe then you are a whimp. I have never been politically correct, look at my new logo.

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