Replies to This Discussion

Permalink Reply by Les Bamburg on February 28, 2010 at 14:54

Suzan,

Yellow - 1 to 29 units in a township
Light Red - 30 to 35 units in a township
Blue - 36 units in a township

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Permalink Reply by Parkdota on March 1, 2010 at 9:47

Great info, Les. It looks like companies are about 45% in to the HBP. I'm guessing there might be some more units so let's just pretend they've got about 60% to go to HBP. I'm guessing they started around the summer of 2008. If so, then they've made some serious movement in only 1.5ish years. Would it be reasonable to think, then, that they might have all units HBP by 2012? If so, would it also be reasonable to assume that would be when most 2nd wells are begun?

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Permalink Reply by Les Bamburg on March 1, 2010 at 9:56

Parkdota, it somewhat varies by operator. Exco says they are HBP'd now so their drilling is purely for production growth. Of course some of their acreage is HBP'd by shallower wells so some of the Haynesville/Bossier Shale wells may be the 1st in the section.

EnCana/Shell on the other hand, probably will not have all their acreage HBP'd before 2013 so less likely you will see a substantial number of 2nd wells on their units before then.

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Permalink Reply by Henry on March 1, 2010 at 13:19

Parkdota,
I would not be planning on a 2nd well from the big guys any time soon. Two reasons. They have to spend their money HBP'ing land in other plays. Also, it would be hard to imagine that they would go through and give each section a second well. Rather, they would likely do numbers 2-8 in one section before moving to the next one, once everything is HBP. It would be more economical. So, while a few mineral owners might get numbers 2-8 in the near years, most will likely wait a loooonnnng time for the second well. Remember, Chesapeake alone has 5000+ drill sites in the units they control.

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Permalink Reply by Parkdota on March 1, 2010 at 14:34

Henry & Les, I noticed before prices tanked that some operators were drilling many wells in one section. So, I guess Henry's idea that when companies are finished with HBP they then might tackle wells 2-8 in one section then hit the next, the next, and so forth for economical reasons does make perfect sense. With regards to the larger companies I would imagine that most of their leases were done in 2008. So, they have to do something by the end of 2011 whether it be spud, drill, get extensions, etc. assuming the original leases were for 3 years. Also, how in the world would they decide what section to target in the post HBP phases? I'd like to think they'd go in the order they started but if they are trying to save money then they might start with where they finished and work the rigs and drilling back to the original spot, right? I'm guessing infrastructure also might have something to do with it as well. I'm in 14n 14w and have guessed 2015 to 2017 for our 2nd well.

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Permalink Reply by Les Bamburg on March 1, 2010 at 16:43

Parkdota, it appears that EOG may be currently experimenting as they are drilling multiple wells (both HS & BS) in a couple of sections but they have not provided any comments.

Much of the acreage was leased back in 2005 but had five year (3+1+1) terms so need to be drilled by this year. Other acreage will expire in 2011 & 2012.

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Permalink Reply by Henry on March 2, 2010 at 0:58

Parkdota,
Les is right. EOG is drilling many wells in some of their sections in Trenton Field (11N-13W). And sonris is full of El Paso requests for alternate unit wells in their sections. But on the opposite end of the spectrum, look at Chesapeake. They have already announced they will remove many of their rigs from Louisiana, once they hold all their leases. So even if they keep 10-15 rigs in Louisiana, and they have 5000+ sites, well, you do the math. Money will decide where they drill - ease of access, pipeline capacity, ability to do "factory drilling," etc. If I were leased to one of the big leaseholders, I would not hold my breath for the second well.

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