Dry Hole

If this has been discussed previously, I cannot locate it here. I've been reading the site over the past few weeks and this is my first attempt at a discussion. I've heard discussion of a dry hole in certain areas that may lessen the value of leases in and around that area. Does anyone know if a well was previously drilled and determined to be dry if that does affect the surrounding area? Also I'm not good at reading the SONRIS map in LA but it looks like the the Desoto, Sabine, and Red River Parishes all contain numerous dry holes. It appears the ones that I viewed the data for date back to 1960s-1980s. If talk of a dry hole can hurt a particular area, then if I am reading it correctly, are they just talking about a recent dry hole?

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Permalink Reply by RAY on August 12, 2008 at 10:06
No such thing as a "dry hole",if you are on the Shale,you are on gas.

the Shale gets "thinner" at the fringes[ Texas,Arkansas,Mississippi,,etc..]
and will not support directional drilling.
Permalink Reply by The_Baron on August 12, 2008 at 10:20
We will see. Just because the shale is there does not mean that it contains gas in paying quanities. Also, the well must produce enough to justify the expense of completion. Many of the more experianced geologists in the area believe that there will be sweet spots that will be more productive than others. This has been the case of the Barnett in Fort Worth.

Also keep in mind that the haynsville shale is not a new discovery, it has been known for many decades. The theory is that the shale was the source rock for the gas found in the cotton valley and hosston formations (sands). The problem is it shale was not productive on its own until many of the new technologies that are now being used (horizontal drilling, better fracs, etc.).

Dry holes are a common occurance. Also many more wells underpreform and do not pay out, i.e they cost more to drill, complete and operate than they produce.

Too many dry holes and the drilling companies will pack up and look for greener pastures.
Permalink Reply by Diamond on August 12, 2008 at 12:23
What do you know about the smackover formation below the
haynesville shale ???
Permalink Reply by Iris on August 12, 2008 at 11:01
??? So let them look for greener pastures or wetter holes somewhere else...no reason I should give rights away...
Permalink Reply by Snake Stewart on August 12, 2008 at 11:04
I agree to an extent Baron. The Barnett has over 8100 holes in it , none dry. Are some areas going to produce better then others ? Absolutely ! Do we as mineral owners know exactly where these different areas are ? Nope ! With the constant misdirection that the O&G's are using you can't take their word for diddly squat ! That being said , Uncle MAC has been quoted as saying the Haynesville wasn't discovered until about six months ago. What do we believe, unless the Haynesville used to be called something else. Like the Bossier Shale maybe ? Dry holes have been a none occurance since they started drilling the Barnett over 10 years ago!
Just out of curiosity , how many shale wells haven't paid out in Texas or La. ? Within the last 10 years that is.
Permalink Reply by Snake Stewart on August 12, 2008 at 11:44
Interesting about the caps.Wonder if too many were unleased in these areas ? Thanks for the post. There is entirey too much fear factor and O&G leaning commentary for the good of this site and the newer posters. You and I see the rhetoric and can swim safely by but many can't do that as easily. It still bothers me that the misinformation usually comes from the people that know better. Just part of their job I guess. Thanks!
Permalink Reply by Coonman on August 13, 2008 at 2:36
woah.. I been wanting to drill my own hole for years even a couple of chalk wells but money...IS A problem.
Permalink Reply by TCB DS3 on August 12, 2008 at 12:18
There are no Haynesville Shale dry holes. None in the Barnett play and none in LA that is one of the reasons these wells, deeper than 11,500ft, are so valuable for the o/gs. Risk is down and the cost for drilling these deeper wells has gone down to $5m per well per a CHK statement. What you saw on SONRIS for the '60's-'80's were wells most likely in the 6K-6,500 ft depth range.

There were some posts on this site about a "dry hole collar" being placed on a well. But that was an equipment name being used before the "tree" was placed on the well.

Talk of a dry well can not hurt the lease value of an area if the landowners always realize it is just that talk to slow the rate of lease increases down in the parishes you listed.

Check the per acre bid rates on the state's auction Wed., 7/13, to see if the o/gs fear dry holes in these parishes by bidding lower lease rates.
Permalink Reply by txhistory1836 on August 12, 2008 at 12:29
I just wondered if the wells that are on record as dry holes have any effect on your land lease if they date back 20 or 30 years. Obviously technology has changed and yes those wells do appear to have a 6500 depth range, so they weren't drilled deep enough for the shale. If you are on what is currently thought to be the fringe area of the haynesville shale would those o&g companies have any information from their dry well records or reports that would give them an indication of what was farther down than 6500 ft?
Permalink Reply by Snake Stewart on August 12, 2008 at 12:36
They seem to be slinging a lot of dough around when you stand your ground , for dry holes in the '80's to be having any effect on them.
Permalink Reply by TCB DS3 on August 12, 2008 at 13:15
The o/gs old records on particular wells from years ago may not be available to the company currently holding the lease. Even if they do have this information they will not tell the landowner because they paid for that information and they own it.

There is a geologist on this site who graciously answers questions about if your land is in the HA if you provide him with your Section, Township, and Range numbers.

Those old "dry holes" may get reworked and become producers in today's higher gas and oil priced marketplace. They should not be compared to today's deeper well results, drilling methods and nor should they decrease the value of your land.

The o/gs are not telling us really where the fringe is located. Some landmen/women might us words like "your land is on the fringe" but it does not mean anything other than a method to undervalue the lease they are trying to get you to sign today. Only as wells are drilled and the results reported will all of us know for certain where the fringe begins and that is going to take some time.
Permalink Reply by North LA on August 12, 2008 at 14:26
When I look on Sonris I see a lot of dry holes around Red River parish and De Soto but the new deep rigs numbered greater than 20000 are all productive. That's just from what I've observed.

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