Indigo Minerals has applied to the state to form 2 Haynesville Shale Units (HA RA SUY and HA RA SUX) in the King Hill Field.  The application also includes 5 HC (Horizontal Cross - long lateral) wells.  Since the sections/units are undrilled, these 5 wells will serve as "unit wells" and, if drilled and found to be productive, will hold the leases covering those sections.  These units if fully developed would mean the drilling of 54 to 72 horizontal wells (6 to 8 wells per unit depending on how Indigo chooses to space them).

This is an area that was deemed non-economic by a handful of early wells.  However the willingness to explore these areas (and there are numerous others) is the result of the new well designs.  Though many choose to focus on the lateral length, that is more of a cost saving to the operator than a boon to the mineral owner.  Where the mineral owner does benefit is in the "high intensity" completion designs (shorter frac stages, more perforation clusters and massive amounts of sand and water).  The early Haynesville well designs pumped anywhere from 1000# to 2000# of sand per linear foot of perforated lateral.  The new designs pump 3000# to 4000# and stimulate a much larger volume of rock.  The cross unit laterals do provide one additional benefit for everyone.  The elimination of the "no perf" zone.  Prior to the approval of cross unit laterals, there could be no perf cluster (and thus no production) closer than 330 from a unit boundary.  Now as wells drill north south, they stimulate rock that never before contributed to production.  Potentially another 80 acres in a 640 acre unit equal to an additional well at 8 well per unit spacing by eliminating the no perf zones on the north and south ends of each unit.

It will be interesting to see when Indigo begins to explore this new area of interest and to follow their progress.  Use the link below to view the unit and unit well plats for this area along the Red River and Natchitoches parish lines in the King Hill Field and the Redoak Lake Field.

INDIGO%20KING%20HILL%20REDOAK%20LAKE%20UNITS-WELLS.pdf

Views: 3531

Replies to This Discussion

Yeah, George, the application is confusing.  First note the "X" mark across the title box in the lower right corner and disregard Exhibit 1 as it was originally approved in December 2019 and is being superseded by this application, Docket 2020-295.  Now look at Exhibit 2.  Re SU53: the solid line is a previously proposed unit well that is being replaced by the dotted line substitute unit well. Usually a solid line that is not entirely straight is used to show the "as drilled path" of an existing well but that will was never drilled, just approved in that 2019 order.  The dotted line well with surface location in Section 6 - 9N-10W replaces it.  Re SUNN:  The solid line appears to be Serial Number 252200, drilled and now in completion operations, that is meant to replace the previously approved but undrilled unit well shown as a dotted line in Exhibit 1 in sections 29 & 33.  I hope this makes sense,  I had to look at the wording of the application and print out the two exhibits to place them side by side to get it straight.

I was looking at the production of this well https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

It seems that this well is extremely productive in comparison to other wells in the area.  If that is the case, is this due to the well being in the Bossier formation or due to the length of the lateral?

Could be a number of reasons considering the specific area.  This is on the slope of Natchitoches Island.  A little further east is the apex of the dome and the Haynesville Shale is faulted out.  This far east is further down the slope and should have good HA and BO.  I suggest that you look at the TVD (most recent date under Well History) for other near by wells and see if there is an obvious difference, something in the neighborhood of 500' of separation  between landing zones for the HA and the BO.  It is a long lateral, 8187 linear feet of perforated lateral so also compare that to the near by wells which are less productive.  The last variable is the fact that the northern perforations in these wells are abutting a fault zone.  Although operators don't highlight this in any press releases or corporate presentations, we have long speculated that there are greater natural fracture networks around faults so a greater drainage area.  We have seen examples in the past of much slower decline in wells drilled into areas of major faulting.  Where once fault zones were are problem for drilling horizontal wells, now with cross unit lateral wells they can be a benefit.  Let us know what you find out.  Good luck.

Replying to George Wiley’s post re production on 252199.  There are 5 wells in this production report and 4 are culs.

Yep, Paw.  That would do it.  The production volumes found in the SONRIS database for unitized wells are cumulative for all the wells in the unit.  The only time you will see an entry for an individual well is the IP data in the Well Scout section of the Well File.  Monthly production totals cover all the wells producing from the unit.  Click on the six digit LUW Code number starting with a "6" and it will pull up a list of the wells reporting production for a specific unit regardless of each well's surface location.  SONRIS no long updates the Well Ctn column so viewing the LUW report is the only accurate means to know how many wells are contributing to the reported monthly unit production.

I leased 40 acres in S23-10N-10W in the King Hill Field to Indigo back in 2018.  They were moving along on the permitting process and then everything went quiet.  Indigo did not renew the lease at 3 years before selling to SWN.  What was the reason for the seeming loss of interest in the Ha Ra Suz area?    

I don't know of any reason beyond that I think Indigo was moving toward selling their Haynesville Shale assets during those three years.  Did you get the Indigo application for the well including Section 23?  I'll post a link to it below.  Field Orders are effective indefinitely unless dissolved by a subsequent Field Order.  Think of these Field Orders as "spacing approval".  Horizontal well laterals must conform to spacing regulations and may be no closer to a unit line than 330' and no less than 660' between lateral wellbores.  HC (Horizontal Cross)  wells may ignore the 330' between units in a north south direction.  Once an operator has secured spacing approval through a Field Order, they can permit a well or wells that conform to those approved lateral slots at any time in the future.  Interested Parties are required to be "noticed" to form a drilling unit or approve well slots.  There is no notice requirement for the permitting of one or more wells.  You'd have to checking SONRIS to know that permits had been granted.

https://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%...

Thank you for that information, Skip. 

I had received the pre-application notice in October 2019 showing Section 23 within the unit, but nothing further after that.  When I inquired recently with SWN, they checked with Indigo and then responded that Indigo had allowed the lease to expire in February 2021 with no desire to extend.  

SWN now owns this Field Order even though leases have expired, it continues in effect.  Obviously, SWN would need to pursue leases to be able to develop Section 23 which the company might do in the future.  SWN has been super aggressive since acquiring the Haynesville assets of Indigo and GEPH.  They have seven Haynesville directed rigs drilling in Louisiana currently.

Yes, I do keep an eye on your weekly rig report.  

It will certainly be nice to have another lease offer come along.  I will be eagerly awaiting that day, which might not be too far away, given the current price and demand for natural gas.   

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service