Note:  The media is beginning to recognize the increase in Haynesville drilling even if they continue to mistakenly  think that some of that activity occurs in Arkansas.  One day they may understand that not only is there no Haynesville Shale wells in AR, there are none within twenty miles of the state line.  SP

by Naureen Malik  7:38 AM CDT March 11, 2015 bloomberg.com

 (Bloomberg) -- Natural gas output from the Haynesville deposit in Louisiana, which lost the crown as the nation’s biggest source of gas from shale two years ago, is growing again as drilling costs decline.

Chesapeake Energy Corp., the biggest U.S. gas producer after Exxon Mobil Corp., said it’s scaling back production at the Marcellus deposit in Pennsylvania to focus on Haynesville, while Comstock Resources Inc. is testing a process called “refracking” to get more gas from Haynesville wells that were previously hydraulically fractured.

Gas flows from Haynesville have climbed 7 percent from a four-year low in July, government data show. Output is still down 33 percent from a 2011 high as producers migrated north to the Marcellus, the biggest shale-gas region, to take advantage of low costs and higher yields.

“The companies that are becoming increasingly more active in the Haynesville are getting better at cost reduction,” Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York, said in a March 9 telephone interview. “We are hearing about refracking, and a couple of companies have done this as a way to improve returns out of the play, but we’ve also heard that the efficiency gains have gotten better.”

Spot gas at the Henry Hub in Erath, Louisiana, traded at $2.79 per million British thermal units Wednesday, compared with $1.65 for Marcellus gas in Pennsylvania at the Dominion North Point/Leidy hub, according to the Intercontinental Exchange. Henry Hub gas has been at a premium to the Dominion hub since February 2014.

Production Gain

Haynesville gas production will rise 79.5 million cubic feet a day to 7.13 billion in April from March, the most since August 2013, according to the U.S. Energy Information Administration. Output at Marcellus wells will rise 74.5 million a day to 16.8 billion. Production growth at the Haynesville deposit, which also straddles Texas and Arkansas, will exceed Marcellus for the first time since October, when Marcellus production dropped. Haynesville lost its crown as the biggest U.S. shale-gas producer in 2012.

The break-even cost for new Haynesville gas wells has fallen to about $2.30 to $2.40 per million Btu from $4 two years ago, Moses Rahnama, an analyst at London-based consultants Energy Aspects Ltd., said in a March 10 e-mail.

Haynesville is also rebounding because supplies can be sold into a Gulf Coast market where new industrial plants are opening and liquefied natural gas exports are scheduled to start later this year, Rahnama said March 5.

New Demand

Chemical and fertilizer producers will spend about $35 billion this year through 2022 in Louisiana on new projects that rely heavily on gas, Deren Gursel, an energy analyst at Wood Mackenzie Ltd. in Boston, said in a March 10 e-mail.

“There are many unfinished wells in some of these legacy plays that require less investment and will produce reasonable volumes,” Rahnama said.

Comstock will drill 14 new Haynesville wells while testing whether “it may be less expensive” to refrack 10 existing producing wells, Chief Financial Officer Roland Burns said in a Feb. 10 conference call.

Companies hydraulically fracture shale deposits by injecting water, chemicals and sand at high pressure into wells to open fissures and release the gas.

Chesapeake is drilling longer horizontal wells and stacking them, Jason Pigott, executive senior vice president of southern division operations for Chesapeake, said in a Feb. 25 call with analysts. Some well lengths this year will be 7,500 feet to 10,000 feet, costing about $9 million to $11 million.

“One of our lowest-cost wells” was drilled in the Haynesville for about $6.3 million, Pigott said. “The teams are really just crushing it there on costs.”

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I was talking about any formation.  Not one in particular.  I hadn't heard of a well that drilled to the Haynesville formation and also had separate laterals into another formation. 

I'm somewhat familiar with the HA stacked laterals in E TX that dbob mentions.  Julie (jffree1) could probably provide us with some additional information on those.  I am unaware of any stacked laterals in the NW LA. 

Before we go too far down this road there is a distinction to be made.  Stacked laterals as mentioned here are multiple horizontal wellbore extensions from the same vertical wellbore.  Then there is what I will call "stacking laterals".  This is the practice of orienting one horizontal wellbore from one vertical wellbore directly over or under another horizontal wellbore from a different vertical wellbore.  This is done so that the two frac cylinders communicate (overlap) and stimulate a larger volume of rock.  I don't think "stacking" horizontal wellbores is applicable for the Haynesville Shale as it is generally not thick enough to need two laterals.  "Stacking" laterals certainly can work where there is a target formation with pay greater than >400' in thickness or multiple stacked formations that have sufficient hydrocarbons.  Wildhorse is "stacking" laterals in some of their Lincoln Parish wells.

God bless you skip for injecting that clarity. :) .

when Bobi took me to task i had to go into high-speed edumacate lol myself mode.

and quickly realized from my speed reading that horizontal advances such as multi-lateral is the one area in which the "proving fields" have been marcellus and texas etc. and specifically NOT NW-LA-Haynesville. Thus I stood/stand corrected lol.

Now a lil bit of waxing poetic about who I am.

What has occurred in only 10 years, continues to leave me speechless. Because the initial single and isolated benefit has quickly become a global cascading force like an avalanche it will be realized eventually that The Shale Revolution was/is, for Mankind, a technological advance that can stand alongside the handful of others that occur only once every 500 years or heck longer.

And it was born in Fayettville, and Barnett, and right here right now in Haynesville, where my 2 brothers and I feel so fortunate to be the sole heirs and now owner's of 1,000's of acres of property acquired before the Civil War by my father's father's father's father and my father's mother's mother that just by pure dumb luck is located at the epicenter of Haynesville, specifically one piece that what at one time was "one continuous piece" but became 3 corners of I-49 at Highway 175. (dad sold the surface where subsequently the Relay Station and Casino popped up, but not the minerals thank God lol).

My father's father, a Mansfield, LA "Roberts", was President/CEO of Nabors Trailers in its heyday never leaving his grandfather's and father's place, the 10 acres and pillared white house on Gibbs Street at Crosby, and in fact "saved" it when his father had borrowed heavily on it and then died in 1930. His mother and siblings, as many in the country did, headed to california, never to return. The dust bowl, the great depression, etc. My father's mother a Kingston, LA "Scott".

I am most happy to have been born, and will always be, an environmentalist. But it now gives me even greater pleasure to be a proud natural gas producer in Haynesville, the "proving fields" and birthplace imho of The Shale Revolution, located far beneath the surface of the Parish of DeSoto, in the great state of Louisiana, USA.

{ -_-} .

Fortunate indeed.  Great location.  Congratulations, js.

To clarify, ye

I know exactly how you feel,we have inherited our 20 acres in Claborne Parish,just off of Arizona road.my Grandfather Dayton C.Kimbell was sent to California via US Navy,which is where we(grandchildren)grew up hearing about great times in Louisiana and beloved family members down in the South.wasn't until last year we inherited it,and just like you I feel blessed and lucky to be apart/ have a part of such great opportunity and beautiful land. So my goal this year is to finally make it down there and see it while fishing in beautiful Claiborne lake while camping in "The Backwoods" that I can actually call our own.Thanks to our Great Grandparents,Grandparents and my Mom ..thank you for sharing your story (jscottrx)it validates true emotion and gratitude and lets me know I'm not the only one who feels this way
Thorn Lake, Red River Parish Louisiana has stacked laterals in the Hainesville and Cotton Valley reservoirs in sections 4 and 5, Township 14 N. Range 11 W.

Ben, can you indicate which of the wells are stacked?

Section

Township

Range

004

14N

11W

Count

Well Serial

Well Name

Well Num

Field ID

Org ID

Parish

Upper Perf

Lower Perf

Total Depth

API Count

LUW Code

LUW Type

Well Status

6

239583

CV RA SUF;SAMPLE 4 H

001-ALT

8918

Q016

41

9800

13913

14264

1

615076

2

10

7

240052

HA RA SUD;SAMPLE ETAL 9H

002-ALT

8918

B373

41

12630

17165

17308

1

615411

2

10

8

242542

HA RA SUC;SAMPLE ETAL 4H

004-ALT

8918

B373

41

12162

16675

16755

1

615460

2

10

9

245337

HA RA SUD;SAMPLE ETAL 9H

006-ALT

8918

B373

41

12570

17135

17222

1

615411

2

10

Section

Township

Range

005

14N

11W

Count

Well Serial

Well Name

Well Num

Field ID

Org ID

Parish

Upper Perf

Lower Perf

Total Depth

API Count

LUW Code

LUW Type

Well Status

6

237950

CV RA SUA;SAMPLE

006-ALT

8918

Q016

41

10100

13950

14134

1

607518

2

10

7

238488

HA RA SUE;SAMPLE ETAL 5 H

001

8918

B373

41

12279

16290

16290

1

615551

2

10

8

239987

HA RA SUY;SAMPLE ETAL 32H

001

8918

B373

41

12489

17020

17170

1

615734

2

10

9

241527

HA RA SUJ;SAMPLE ETAL 8

002-ALT

8918

B373

41

12740

17330

17415

1

615612

2

10

10

241528

HA RA SUJ;SAMPLE ETAL 8

003-ALT

8918

B373

41

12590

17152

17245

1

615612

2

10

11

241529

HA RA SUJ;SAMPLE ETAL 8

004-ALT

8918

B373

41

12824

17388

17520

1

615612

2

10

Skip: Can you direct me as to how to contact you directly?

Ben, you can send me a friend request and leave a message on My Page or get my off site email there.  Just click on my name.

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