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 Dorcheated A1 on -
Ok Cookie,
I'm like (getoverit) that I can undestand.
I can't comment on it. But I can understand it. -
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Permalink Reply by Cathaus on
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KB,
Don't you mean, KISS?!?!?!? I feel really stupid compared to MoonCookie. But what would you expect from an old Republican like my humble self?
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Permalink Reply by mooncookie on
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reductionist sounds like a sauce to me (a very fattening one), but I like to think of them as minimalist movement: Rothko and his black canvases or the squares with 3 colors!
google rothko, he is a better example of Occam
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Permalink Reply by shelby on
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Damn Mooncookie,
Did you make that up? You make me want to go back to school.
Thanks,
Shleby
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Permalink Reply by mooncookie on
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I just grabbed it from wikipedia, my philosophy notes are underwater right now thanks to IKE....but I would like to thank the late Dr. Grahmm for making such a dork (I took audit course from the man...he is legend!)
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Permalink Reply by Dorcheated A1 on
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Ok Cookie. let me try mine on you.
Amen brother Ben,Shot a Rooster killed a Hen.
I don't know what I have been told. A Green Grasshoper got Green butt hole.
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Permalink Reply by Dorcheated A1 on
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Sorry about that Haynesville.
I just got carried away.
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Permalink Reply by Two Dogs, Pirate on -
So Darwin should be blowed off as a crack pot?
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Permalink Reply by mooncookie on
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Like butter!
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Permalink Reply by Lrb2brnot2b on
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Was that English??
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Permalink Reply by RAY on
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one simple question..
Why are some "really poor" people......Republicans??
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