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Permalink Reply by Skip Peel - Mineral Consultant on September 7, 2017 at 13:33

The permits to drill for all four wells are good until 12/11/17 (six month permits).  Indigo is complicating our lives by drilling wells under three different names and operator codes:  Indigo Minerals, Indigo Haynesville and Indigo Resources, so it helps to be more specific than just Indigo where possible.  These wells are permitted to Indigo Haynesville. Unless you heard this from someone who works for Indigo or Brammer Engineering, I wouldn't take it as a fact.  Just a rumor.

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Permalink Reply by SL on September 7, 2017 at 14:00

Thanks Skip!

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Permalink Reply by Greg Whitson on September 8, 2017 at 4:30

Indigo Haynesville is hard to figure out.  In DeSoto they have drilled about 14 wells so far this year looking at Sonris.  Only 1 has been brought on line.  The rest are waiting for frac. There are also 11 permits open.  Seems like a big expenditure without any return.  I too wish I knew what the business plan is here.

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Permalink Reply by Doctor Joe on September 8, 2017 at 5:06

I wish I new what their plans are for Sabine Parish as well.

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Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2017 at 5:19

I don't think Indigo has any near term plans for Sabine Parish but other Haynesville operating companies do.  These are key wells for extending development further south in Sabine.  These are latest version wells by experienced field personnel. The following are the current live permits for Sabine as of 9/8. Click on the operator code in blue to see which company holds the permit.

250174	HA RA SUZ;BSMC LA 18-7 HC	001-ALT	05-APR-17	C332	19-10N-14W		BENSON
250187	HA RA SUP;NABORS 13&12-10-13HC	001-ALT	19-APR-17	C441	24-10N-13W		BENSON
250230	JUR RA SUO;OLYMPIA MIN 2-11 HC	001-ALT	02-MAY-17	G2380	2-08N-12W		BAYOU SAN MIGUEL
250242	HA RA SURR;CT 4&33-9-12 HC	001-ALT	15-MAY-17	C441	4-09N-12W		PLEASANT HILL
250243	HA RA SURR;CT 4&33-9-12 HC	002-ALT	15-MAY-17	C441	4-09N-12W		PLEASANT HILL
250322	JUR RA SUI;LA MINERALS 27-22HC	001-ALT	15-JUN-17	60046	34-09N-12W		BAYOU SAN MIGUEL
250323	JUR RA SUI;LA MINERALS 27-22HC	002-ALT	15-JUN-17	60046	34-09N-12W		BAYOU SAN MIGUEL
250324	JUR RA SUI;OLYMPIA MIN 27-22HC	001-ALT	16-JUN-17	60046	27-09N-12W		BAYOU SAN MIGUEL
250325	JUR RA SUI;OLYMPIA MIN 27-22HC	002-ALT	16-JUN-17	60046	27-09N-12W		BAYOU SAN MIGUEL
250326	JUR RA SUI;LA MINERALS 27-22HC	003-ALT	16-JUN-17	60046	34-09N-12W		BAYOU SAN MIGUEL
250370	HA RA SUPP;ARRINGTON 11&2HC	001-ALT	17-JUL-17	C3020	11-09N-14W		CONVERSE
250422	HA RA SUB;THOMAS GREER ETAL16H	001-ALT	11-AUG-17	G2380	16-09N-12W		BAYOU SAN MIGUEL
250423	HA RA SUII;THOMAS GREERETAL17H	001-ALT	11-AUG-17	G2380	16-09N-12W		BAYOU SAN MIGUEL

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Permalink Reply by SL on September 8, 2017 at 5:26

I did receive something saying Indigo was fixing to apply for permit on 2 wells in Sabine. It's on the Sabine/desoto line. Not certain about section but it was 10N/14W.

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Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2017 at 5:38

It's not a permit, it's a spacing order.  State regulations require an application for "alternate unit wells' which must meet spacing requirements (no lateral closer than 330' from a unit boundary or an adjoining lateral).  The applicant is required to send notice letters to all mineral and surface interests in the unit and those immediately adjoining to a distance of 1000'.  Once the application is approved as a Field Order the unit operator may choose to permit the wells although the Field Order is effective indefinitely and does not require that wells be permitted.  A Field Order more often than not is followed up, eventually, with actual permits to drill and those permits are generally drilled except in unusual circumstances.

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Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2017 at 5:25

Greg, which Indigo are you looking at?  There are 3.

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Permalink Reply by Greg Whitson on September 8, 2017 at 5:42

60052

INDIGO HAYNESVILLE LLC

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Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2017 at 6:12

Indigo also drills under the following names.  This has to do with the investors associated with each entity.  It's basically accounting purposes and the field operations are, I believe, overseen by the same staff.  Indigo Haynesville only operates Haynesville rights while Indigo Minerals drills both Haynesville and Cotton Valley wells in different units.  The first wells were recently permitted by Indigo Resources so how they will operate is not yet clear from publicly available information.

60005

INDIGO MINERALS LLC

 

60050

INDIGO RESOURCES LLC

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Permalink Reply by Greg Whitson on September 8, 2017 at 7:30

Skip, my question is why would they invest so much in drilling and not complete the project?  It looks like they are drilling only to shut them in pending the frac.  It would seem to me that they would complete the wells and choke them down until the market is ripe for the business plan.  That way they would at least get a small return on investment while waiting for the master plan to come into play and have a better idea as to the well's production.

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Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2017 at 7:38

Greg, the development pattern has changed significantly.  Part of that change is pad drilling multiple wells and the other part is multi-well completions.  The instances of fracking one well are getting fewer and further between.  Now operators wait until they have at least two, and sometimes more, drilled but not completed wells.  Some companies talk about zipper fracks but I don't as yet know if that is the proper terminology for Haynesville completions.  The Status 31 Code used to mean something different but now it usually signifies a drilled well that is Waiting On Completion.  I think that by reporting a well as a 31 that effectively puts it in limbo so the operator does not have to make any further reports to the state.  Scheduling a frack crew is another reason for delays.  The big downturn in prices a couple of years ago put some companies out of business and some that remained in business lost experienced employees when they curtailed operations.  I don't think you should worry about "completing the project", just have a little more patience. 

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