EnCana indicated on their conference call today that they have successfully re-fraced 2 wells, are preparing to re-frac 5 more and are looking at an additional 30 after that. They indicated the cost per re-frac is approximately $1 million and the payback is only a matter of months. They will be studying other shale plays to see if re-fracs make sense in those. They indicated that these re-fracs would result in the highest return on capital in their entire portfolio. This should end the debate about the plausibility of re-fracing wells in the Haynesville once and for all.
EnCana also has sections 6,7,8,9 in 14/14 Desoto. They worked that area hard for leasing in winter and spring of 2008 BEFORE the Haynesville was announced. they got a lot of big land owners for $350 ac and 20% royalties. When the secret of the HA was out, then they leased the little acreages for more but the cost basis was super low because of all the acreage they accumulated at the $350 price
What section, township, and range is that, Ms. Kitty?
Does anyone know how low production must be or the % decreased production level when the operator would decide it is time to refrac?
Wow, I mentioned re-fracking years ago and was told it was not done at all on these horizontal wells. I have watched movies that stated these wells can be re-fracked up to 10 times. I guess time will tell. I also got a big check, over $600 this month but from EXTO and they had a copy of every month from the time my well started to this past month. I expect it to drop back to under $50 a month from now on......or less.
Years ago horizontal wells weren't re-fraced. Vertical wells were. The ability to re-frac horizontal wells is a relatively new development.
I meant XTO, I don't know why I put an E there... Strange how they did not explain anything about my "big" check and I assume they went back to the first month of production and paid me for "something they left out" since the well has been in operation.
I understand the 32-14-11 well in rr parish is going to be refraced or maybe being refraced as I write. Think it would qualify as a real good ip well that to soon became a troubled well.