Replies to This Discussion

Permalink Reply by kittycatmama on July 14, 2016 at 2:58

I am just waiting for them to permit sec. 7 of 14/14 in Desoto. DNR approval in Feb. Thought they would permit soon after that. This is positive!!! Thanks Skip for the info

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2016 at 3:07

You're welcome, kcm.  GEPH has received approval for a number of alternate unit wells but has not applied for drilling permits until now.  I suspect we will see more in the near future although a single rig will likely drill all 4 of these wells.  If we see more permits in the near future we might be able to get an idea of the extent of the GEPH drilling program for the remainder of 2016.  Several members have asked me about the fact that these are not HC wells.  The well plats are now entered in the database if anyone would care to review them.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2016 at 4:50

I was under the impression that GEPH retained ECA's HA drilling management team and supposed that there would be little or no learning curve involved.

HA RA SUY to the north is a Vine unit.  Considering how good this short lateral unit well is it seems strange no HA well has ever been drilled in Section 33 to the south.  GEPH may control that section as they are using it as the surface location for these 4 alt wells.  GEPH does control Section 4 - 13N - 10W 9one section further south) and that is another well surprising productive for a short lateral. 

Now all we need is a rig to be assigned.  I'll post when one appears on the weekly rig report.

• ▶ Reply

Permalink Reply by john hamilton on July 15, 2016 at 22:17

Does this new drilling in section 033 point to possible other units in section 033 being targeted as future well sites?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 16, 2016 at 1:52

Hard to know, john.  Since there is an original unit well, if will depend on how many alternate wells GEPH thinks it will take to fully develop the section.  Although state HA spacing regulations allow for 8 most industry folks think something less than that may be enough.  When the well plats are entered in the database, the layout may indicate the intention to leave room for one or more additional wells however these wells well largely deplete the reserves in S33-14N-10W.

• ▶ Reply

Permalink Reply by kittycatmama on July 17, 2016 at 4:47

I went back to early 2016 and found the notice where GEP applied to DNR to drill this area in Jan. (Sec. 33 of 14/10. Then in Feb. they applied to drill alternate wells In Sec. 7 of 14/14. You all (Jay and Skip) know more about this group, so with your knowledge would they finish the alt. wells in Sec. 33 & then move on to Sec. 7 or are they strong enough to start drilling another section soon. I assume there LOTS of rigs out there, so they wouldn't have to wait on a rig like in 2008-9.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2016 at 5:00

Not sure what you mean by "strong enough" but we can make some assumptions when we see how many rigs they deploy.  As I mentioned previously the first four well permits being in the same unit will only require a single rig.

• ▶ Reply

Permalink Reply by kittycatmama on July 17, 2016 at 6:39

Strong enough to me means are they financially capable of drilling multiple units. A lot of companies that were super strong 7-8 yrs. ago (Exco, Linn Energy for example) have limited  financial capablilities to do a lot of drilling in today's environment. I don't know anything about GEP. Obviously they have the financials to buy EnCana's interests in the Haynesville, but those financials can change in even a year.

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2016 at 6:42

The financing behind GEP Haynesville LLC is the Black Stone Group.  They have the financial strength to drill as many wells as they care to.  And few equity firms have the knowledge of and commitment to the Haynesville Shale as Black Stone as evidenced by the number of wells in both states with the name BSM,  Even that does not give a hint as to just how many mineral acres they own that are as yet undeveloped.

Black Stone is also the financing behind Vine O&G.  So they effectively have a major stake in everything ECA and SWEPI once owned in the Haynesville Shale play.  If you will check the Angelina County Group discussions you will find additional BSM Haynesville interests.

• ▶ Reply

Permalink Reply by kittycatmama on July 17, 2016 at 13:02

Jay (and your two cents is always welcome)so far they have applied to drill in only a couple of areas. I have to assume they consider those areas the most economic to drill in with current price of gas.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2016 at 14:25

Although these are the first permits to drill GEPH has been applying for alternate unit wells for some time.  In a quick database search that covers only three fields I count 48.  I suspect that a comprehensive search would reveal more.

• ▶ Reply

Permalink Reply by kittycatmama on July 27, 2016 at 15:19

Have you seen anymore permits filed by GEPH? I am ready to be underpaid by an oil and gas co.  That is better than NO pay. LOL

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page