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: 207
Replies to This Discussion
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Permalink Reply by Snake Stewart on
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Point taken !
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Permalink Reply by Dorcheated A1 on -
Mr. Snake,
Please leave the political incorrectness to a trained professional like myself. A novice like yourself will not survive in the jungle. Although you are a snake their are plenty of mongooses on this site.
Oh, by the way my power is back on. It was hotter than a two dollar pistol last night.
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Who am I to turn down such a stupendous offer. HA!HA!
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Permalink Reply by Bobi Carr ("parker") on
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SS,
Everyone who works in Oil and Gas is not the enemy. How much would you have learned on this site if it had not been from people like Mr. McConnell, Jay, Les and others.
I can understand your frustration with the process of working for your group and trying to get them the best offer, but don't you think that you are overly argumentative with your comments to anyone who disagrees with you.
And as to Mr. McConnell's supposed negative comments about women. You completely read that one wrong. He made a comment about someone opening a business with no knowledge whatsoever about said business. He put it on my comment wall. I commented back to him, with something that I thought was funny, but admittedly it was in bad taste. I am female so I assuredly did not mean anything derogatory to women or even the women in question. It was a joke between friends that in no way was meant to belittle anyone. I ERASED BOTH COMMENTS NOT MR. McCONNELL.
And back to the original disagreement. You were the one who posted Mr. McConnell's site 20 oaks site and his site on allexperts.com.
And also about the solicitation comment on his wall. Someone asked him if he buys minerals and he replied back to him.
I DO NOT KNOW WHY YOU WANT TO ARGUE WITH THE VERY PEOPLE WHO ARE PROVIDING HELPFUL INFORMATION TO US.
Mr. McConnell buys minerals. I see no sin in this. If I ever decide to sell any of mine, I would surely get a quote from him. There will probably come a time where certain people will be glad that there is someone to turn to that will buy their minerals. There are always people who mismanage their money or have horrible things happen that they need to be bailed out.
I have followed his advice on allexperts for a year or two. The fact that he buys minerals is not even on that site.
How much information are you getting from the oil pro from tiger droppings.
Mr. McConnell and Jay have been exceedingly helpful to all of us.
I understand your frustration with oil and gas, but how much accurate information do those of us outside of the industry have to provide.
I don't see why you can't try to have a dialog instead of your arguing with everyone who disagrees with you.
And as far as attacking Rosebud now that is completely low.
I respect what you are trying to do for your group but you are not doing much for the dialog on this site. Some of us want more information than what the bonus and royalties are being paid. You seem to have a heart for the people of your community so why not have a heart for the community of the people on this board.
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Permalink Reply by Bobi Carr ("parker") on
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Also don't you think that if Jim wanted to "toot" his own horn he would do so on the main board instead of the respectful way that he did on Jay's comment page.
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Permalink Reply by true hunter on
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Snake,
I am just a reader usually. But I have had it with
your tirades. I do not care what your personal
opinion is about ANYBODY. Grow Up!!!
I have learned a lot from Mr. McConnell and Jay.
Please post your personal opinion somewhere else!
Thanks....
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Hey true hunter , If you would pull your head out of your own arse long enough to actually read something, you would know that this whole thing happened because of the attacks from CPLJIM
McconnellKrow toward Jay. I simply made the statement that it was happening again. Jay has done much more for this site then MAC ever will do. Well excecpt for chasing good people off. MAC has certainly done more in that department.
As for wanting me to move on......Take a number and get in line chump!!
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Permalink Reply by Bobi Carr ("parker") on
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SS,
It sure as heck seems like you are the one running people off more than Mr. McConnell or anyone else.
If someone disagrees with you, you name call. How about arguing facts instead of just bullying.
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Permalink Reply by papaw-Cb4 on
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Well said true hunter. HA HA seems yo be the only things he really says. But it's not funny!!!!!!!!!!!!!!1
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Permalink Reply by Big Daddy, bcnr on
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Nicely done Parker!
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Permalink Reply by Bobi Carr ("parker") on
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SS,
What is it that bothers you so much about Mr. McConnell?
Is it that he is a CPL? (Have you looked at what the required education to become one entails?)
Is it that he owns Twenty Oaks Corporation and they buy minerals? (If so, have you looked at his web site? How about the information about the lawsuit in favor of mineral owners who were not receiving their proper royalties).
Is it that he has provided experience whereas you have not?
Since, I am female, is it something I just can't understand? Is it just a piss'n contest?
What exactly is the problem?
Maybe if you state it clearly, we can argue it reasonably.
Why are those of us that are reading posts from all of the professionals, and then forming our own opinions, why do you think us such fools?
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Permalink Reply by Bobi Carr ("parker") on
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SS,
Obviously there is something, I just can't understand unless you clear it up for me. -
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