Curious for input for reasons that the Haynesville is doing pretty well, but the F'ville has not had a rig in two years. I know the wells are more productive, but the lower cost of D&C in the F'ville should make it somewhat attractive. Any input?
Thanks, and please don't go to any excessive trouble if you do look into it, I'm simply curious. Basically it is what it is. Could even be a simple numbers thing in that there are only 3 large players here, and maybe 2-3 smaller ones, so there's just not as many chances for someone to decide to drill.
I also know that the "machine" SWN put together to do everything in house basically caused there to not be any local drilling or completions companies left. So if a company wants to drill a well or two they have to mobilize everything from at least 300 miles from here.
On the plus side the last two wells drilled here were to prove up the "upper F'ville", which they reported as successful. In some parts of the play it's almost a stack play, with 3 potential zones. (upper, lower, Moorefield)
One of the issues for non drilling in the FV could be that a lot of the best acreage is HBP and operators don't have to drill to maintain their leases.
They can wait for higher prices down the road.
Your point as to contractor location and support is a good one. A big issue in that it causes operating costs to increase versus areas of good contractor support (e.g. Haynesville)
If they are still tying up leases in the Haynesville, that would absolutely be a reason. I would be surprised to find a lease here, that's worth having, that isn't HBP. I was told that one of the new companies has said their plan is to simply produce what they have now.
As far as contractor support, it's a sea of empty building up here...
Probably rate of return driven. New gen HA wells can pay out in under a year. No way can the Fayetteville hold a candle to that.
What Jay said. Same thing going on in Barnett - that area simply needs higher gas prices, or vastly lower D&C costs, or vastly more effective completions to compete on a ROR basis.
That said, I would love to see what would happen if you implemented all of the Haynesville learnings in either the Barnett or Fayetteville, assuming available good rock,
I am pretty confident saying that in today's world, operators are taking best practices for drilling and stimulation from other areas / plays and seeing if they "work" in different areas.
The big issues for all these plays are the details of the reservoir as to P&P, brittleness, volumetrics, etc. Haynesville has a leg up on plays like the Barnett and Fayetteville due to its higher reservoir pressures and more storage capacity (original gas in place).