Good read
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
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
Views: 227
Replies to This Discussion
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Permalink Reply by mooncookie on -
Republicans encouraged deregulation and thus had no thought of the future... these democrats that borrowed the money from the Republicons could afford the introductory rates before that ARM kicked in SO CRY ME A RIVER....
A person with a credit score 650 that can afford a 3.5% interest rate on say 150,000 home cannot afford a 13.1% interest hike (which is roughly several hundred dollars more a month for the same house...working a job with no health insurance and getting sick= foreclosure) I don't feel sorry for anyone involved because everyone is equally responsible and accountable for their lot INCLUDING MYSELF BY THE WAY...
....Then the fact that these sub-prime mortgages were rated as investment-grade by STANDARD's and POOR's ....is where the real crime of greed happens (other than Phil's paybacks from Enron, etc.
If these bundled mortgages, weren't sold to the rest of the central banks globally....our dollar would look like a peso right now....
So why don't we get off the soapbox and fix this instead of pointing the finger because I've never met a Republican victim in my life.
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Permalink Reply by Snake Stewart on
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Broke from paying taxes to fund the handout programs ?
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Permalink Reply by old as dirt on
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Some things I have learned from this discussion. Jim McConnell is a lightning rod. He evokes strong opinions, pro and con. Occama shaves with a sharp razor. Snake still has his head and he has a side business where he jumps out of cakes. Dorcheated has a brother named Ben that went hunting for chicken but saw a green butted grasshopper instead. Moon Cookie must be really old because she knows 14th century people. She doesn't like fattening sauces and she has heard about Occama's razor.
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Permalink Reply by Dorcheated A1 on
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If I had to grade this Oldy. It would go like this. Content of the material used in the crack (A+) thought going into the crack (A) Time putting the crack together(A). Presenation of the crack(A+). You Sir, are my kind of man.
Please do not waste your talent here come to the BBQ where it can really be appreciated.
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Permalink Reply by Cathaus on
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Old as dirt, I think you have figured all of these folks out good and proper like!!!
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Hey O.A.D. I will have you know I haven't received 1 red cent for jumping out of cakes!
Yet!!!
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Permalink Reply by Margaret Wren on
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Now, even I would have to pay to see that one!!!!! ROTFLMBO
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Permalink Reply by getoverit on
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In response to Snake's "Hey O.A.D. I will have you know I haven't received 1 red cent for jumping out of cakes!", I'd buy that for a dollar. =)
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Permalink Reply by mooncookie on
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I'm just a throw back to when we could keep real... both sides of the argument.
Your argument(s) here: well formed it has premises and conclusions with evidence!
And the style impeccable!
Glad you've minded the gap in technology and joined the conversation....
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Permalink Reply by Simba on
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This is jolly stuff,
Mooncookie,
Thanks for the google on the Franciscan.Apparently it did'nt go much of anywhere,it was funny though.I like Snake, always have. I just think he's wrong sometimes.I think that Jimmy Mac and MyOilpro and anyone else with that kind of frame of reference should be present in these proceedings. To run them out on a rail is selling yourselves short of a great deal of insight and a worthy adversary.Step up to the plate that's all I'm sayin.They are more helpful than they are dangerous.
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Permalink Reply by Big Daddy, bcnr on
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Very well said Simba! I concur wholeheartedly.
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