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Permalink Reply by olddog573 on June 13, 2008 at 7:04

i have heard both. don't know exactly. but here is article with sabine paragraphs included. i learned something yesterday, don't just copy link, print it or copy it. i guess you can teach an old dog new tricks.

TOiland
Investor
Haynesville Play 80% Leased; Bossier Expands Potential: Petrohawk's Wilson
Article By Steve Toon
Published Jun 11, 2008
Haynesville-shale player Petrohawk Energy Corp. is "well beyond" its last announced position of 150,000 acres in the play and the leasing is 80% complete, according to president and chief executive Floyd Wilson, but the emerging Bossier formation potential could expand the play even further, he predicts.
Wilson spoke at Oil and Gas Investor's Energy Capital Investment Symposium in Houston on Wednesday.
"We'll buy all the land that we can beg, borrow or steal," he said. "We'll go back to the market if we have to because you don't get an opportunity like this very often. We're right in the middle of it and we already have a lot of land."
Already the company is in a position to drill for decades, he said, and not "ratty" locations where success is hit or miss. "These are places where we can drill thousands of wells with no dry holes." Petrohawk has three rigs running at present and plans to have 10 by year-end.
The company is estimating reserves of 5 billion cubic feet per well at a well cost of $5 million with 150 billion cubic feet recoverable per section. With production tests on eight wells, Wilson said the recoverables "calculate better per section than the Barnett does."
Since April lease costs have escalated to $10,000 to $15,000 per acre for a typical three-year, 75% net-revenue-interest lease and into the $2O,ooos for deeper rights extending beyond the three-year time frame.
"If the play goes gold, it's going to be $40,000 to $50,000 per acre in three years."
And do the economics of the play justify such lease costs? "For sure," he said without pause. "We haven't seen anything yet to dampen our enthusiasm for the play. Hence our spending activities over the last month or two increasing to hundreds of millions of dollars per week."
Growing data on the Bossier formation, however, which lies just above the Haynesville shale, is adding a newfacet to the play, he said, possibly expanding the size of the play south in Louisiana and further west into East Texas beyond the boundaries of the Haynesville. The Bossier comes into play where the Haynesville gets thin and could be just as good as the Haynesville.
Although some reports have interchanged the terms for the Haynesville and Bossier trends as synonymous, Wilson makes a distinction that they are overlapping but separate trends.
"The Bossier is just picking up speed and may double the size of the overall area," Wilson said. "The Bossier seems to be very real, all the way over to Rusk County" in East Texas. "It's going to go quite a ways over there."
He said Petrohawk will continue leasing as far west of the northern Louisiana epicenter of the play as research indicates. "Our focus has been the Haynesville and it still is, but we have certainly shifted gears over the past two months to try to pick up leaseholds in the Bossier play as well."
He reports of a BP Pic test well in RusK County flowing at 26 million cubic feet per day. Shell tested a vertical well on the southern edge of Sabine Parish, he said, at 3 million per day from the Bossier and another 3 million from the Haynesville that commingled for a total of 4- to 6 million cubic feet per day.
"From a vertical well bore that is almost unheard of from a shale well," he said.
Shell Oil and EnCana hold half a million acres in the southern region of the Haynesville and Bossier plays, he indicated. "When Shell and EnCana got into the play it was a Bossier shale play for them, and the Haynesville came with it. Chesapeake (Energy Inc.) started out looking for Bossier and found the Haynesville potential was huge."East Texas lease holders targeting the James lime and Travis Peak trends are "looking pretty prospective now for Bossier," he adds.
Wilson said the play is breaking so fast that it will cause bottlenecks in rigs and takeaway capacity in a year or so. He expects 100 rigs running by mid 2009, up from five at the beginning of 2008, and horizontal rigs with top drives will become scarce.
"You're going to have a huge traffic jam of people hauling rigs up into this area over the next couple of years."
Getting the anticipated gas out of the area and into an interstate pipeline is going to be an issue as well. If you've got a lot of wells coming in at 5- to 15 million cubic feet a day, you could get this field up to a Bcf (billion cubic feet) a day rather quickly. If it gets to a Bcf, there's not that much capacity there."
Another pipeline will need to be built to handle the capacity, he said, as the existing infrastructure is

Permalink Reply by JW on June 13, 2008 at 8:01

Why do you think they took out the part about Sabine Parish? I think that all of the drilling companies know way more than they show us. I am on the outskirts of all of the maps and I am beginning to think that may be a blessing in disguise. The more time goes by, the more information we get to see. If you don't mind me asking, have you leased already?

Permalink Reply by Keith Mauck (Site Publisher) on June 16, 2008 at 2:18

Well, it is a quote that they took out...so he probably let more out than he wanted to initially....they realized they were only flaming higher lease prices.

Permalink Reply by Keith Mauck (Site Publisher) on June 16, 2008 at 2:11

Amazing! Good thing youprinted ths out and good thng we have a forum like this. Good work.

Permalink Reply by ken hatcher on June 27, 2008 at 8:17

does anyone know what the shell well in the big woods is doing? between pleasant hill and zwolle.

Permalink Reply by olddog573 on June 27, 2008 at 14:51

i have heard 6MM-8MM. i believe it is a vertical.

Permalink Reply by Les Bamburg on June 27, 2008 at 16:21

I assume this is the Olympia Minerals 26 #1 in Sec 26 of T9N-R12W. Reports indicate it is vertical so that would be a very interesting flow rate.

Permalink Reply by JW on June 27, 2008 at 16:31

By "interesting", do you mean good?

Permalink Reply by Les Bamburg on June 27, 2008 at 18:36

Yes and surprising!!!

Permalink Reply by olddog573 on June 28, 2008 at 9:58

olympia minerals is the one i am referring to.

Permalink Reply by Jim Edwards on July 6, 2008 at 12:56

Can anyone give me the web site for the murry well in Pleasant Hill, LA
or the Olympia Well in Belmont, LA?
Thank you,
Jim

Permalink Reply by Donna Thornton on July 6, 2008 at 15:00

Hi Jim. That Murray 31 well SONRIS web page is
http://sonris-www.dnr.state.la.us/www_root/sonris_portal_1.htm

Thanks, Donna

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