Information from EnCana's 3rd Qtr analyst call.

 

"In the Haynesville Shale, the Haynesville Shale performed exceptionally well during the quarter. Production averaged 524 million cubic feet equivalent per day, up about 70% from the third quarter of 2010. We've drilled 20 net wells in the third quarter for a total of 65 net wells in the first 3 quarters of the year, and we plan to drill a total of about 85 net wells by year end. We currently have 11 operated rigs running in the area, as well as an additional 9 rigs operated by our partners.

Drilling and completion efficiencies continue to improve with our resource play hub development model, and infill wells are producing as expected.

In the Credence area of the DeSoto Parish, drilling days averaged 32 days versus the 2010 average of 42 days. This is a 24% year-over-year improvement. Our experience in developing resource plays has taught us that longer horizontal lateral lengths brings increased initial production rates, higher expected ultimate recoveries and improved supply costs. To that end, we drilled 2 record length Haynesville horizontal wells in the Sabine area of East Texas during the quarter. Both wells were drilled with a horizontal length of about 7,500 feet and completion of the wells begins this quarter with up to 30 to 35 completion stages per lateral. We expect to achieve expected ultimate recoveries from these wells between 11 and 13 Bcf per well.

And just a few weeks ago, we successfully drilled 2 record length horizontal wells in North Louisiana. The first lateral section was drilled to a length of 6,879 feet and one week later, we raised the bar by drilling a lateral section reaching 8,003 feet. If you'll recall, we obtained regulatory approval in Louisiana to drill extended length wells across a 3-section unit where previously lateral length was limited by the lease boundary to approximately 4,500 feet. We are currently drilling 2 additional long lateral wells, and we'll then have a total of 4 unit wells in Louisiana of approximately 7,000 feet in length, which are expected to be completed before the end of the year.

We have several more applications under review in Louisiana, and we expect to receive the results of those applications in the upcoming months. Our Mid-Continent team continues to deliver when it comes to optimizing completion design and driving down cycle times. A year ago, we thought that pumping up to 80 completion stages per month was pushing the limits of our technical abilities. In the month of September, one of our completion crews pumped a total of 145 stages. The combined efforts of our field staff and our service providers have significantly accelerated the pace, as we are both advancing the design and execution of completions in the play.

Our Haynesville dedicated fit-for-purpose completion crews have only been up and running for -- the most recent crew has only been up and running for 3 months, and already they have completed a total of 90 stimulation intervals in September, reaching this milestone much faster than we had expected. Our goal is to have this new crew execute an average of 140 stages per month by the end of the year, at about 1/3 of the time it took our previous crew to do that same feat. And our teams are well on their way to achieving this objective."

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I think the proper way to phrase this question may be, "can a horizontal well bore pass through unleased lands in a section containing the surface location  even if the perforations in the lateral are located in the adjacent section"?  The answer would be no, unless the operator had obtained a subsurface easement from the mineral owner of the unleased land transited in the non-perforated portion of the lateral.  Renee, If this is not the case, then try restating the question as it is vague,

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