I know that many people in Avoyelles signed with EOG and some signed with Halcon around the 2011 - 2012 time range and they had a 3 year lease with an option to renew after three years if the lease wasn't held by production. Well it's about time for the renews to start or possibly ,,,,, not. Is anyone hearing anything on that front?
In my gut I would think that the the Halcon wells in Rapides, the lower initial production rates of the EOG wells and the success in the eastern part of the play may have Avoyelles landowners not getting renewed under the contracted terms unless the greater oil maket dictates otherwise.
Any thoughts or news?
Unfortunately, for any field, an operator's good wells must be averaged with the less successful wells and the dry holes to know if a prospect will "play" in the long run.
EOG Well Costs.
Gauthier 14H #1 $8,039,980
Dupuy Land Co 20H #1 $9,136,147
Paul 15H #1 $11,560,307
Dupuy Land Co 30H #1 ?
Dupuy Land Co #1 (vertical) ? Shut In Dry Hole, Future Utility
Gauthier #1 (vertical) ? Shut In Dry Hole Future Utility
It is my understanding that their JR. Partner put all the cash for these wells to be drilled something like 50 million to buy in.......How much of it they paid is another story
Skip, I may be dealing with old info but I know that the Dupuy 20H-1 had an IP 30 of 420 b/d and the Gauthier 14H-1 had an IP of 252 b/d.
I saw the shut in dry hole status on the Sonris as pre-production status. Maybe I'm looking at the wrong well numbers but they didn't drill too many of them.
Keith, all the EOG wells now have sufficient production history to examine. The early IPs are really no longer relevant. The Dupuy Land 30H is the best well of the bunch and has declined to ~72 BOD in only 9 months of production. You can see where it is headed by examining the earlier wells. The Gauthier was averaging 27 BOD at twelve months. Now at 15 months it's at 20. The Dupuy 20H had average twelfth month production of 40 BOD and at 19 is averaging 18 BOD. The Paul is worse still. EOG drilled two vertical science wells and 4 horizontal wells. I don't think they will be back. I do hope that some other energy company may decide to explore as the core TMS is tied up by operating companies and well results encourage step outs.
but, in defense of the play in this area, the companies seemed to be in the learning/experimentation mode. now that they have learned how to drill these wells in the tms, maybe... they can do better and have much better results. just like learning to ride a bike. it takes a few test rides to learn how to master.
david, that's why I mentioned future step out possibilities. I think that once the current TMS operators have proven that they can produce consistent economic results other companies may come looking for opportunities to expand the play. EOG has a number of first rate wet shale plays that will be their focus. Companies that do not may come looking in the future. Right now many in the industry are waiting and watching this early stage of E&P in the TMS to see a greater data set. It should take another six months or so.
Yesterday I had to go to Leesville and on the way I drove to the EOG/Indigo well site and it looked ready to go. Looked like the workers were doing the finishing work on the water system. Could be any day a rig will move onto location.
It will be an important well to watch for a lot of Central LA land owners. When a rig spuds I'll post a discussion thread.
I just met a landman who said the Vernon parish well was actually more important to the play is south rapides. I thought it was tms, but i'll ask if it is tms or Wilcox.
he also said the lambright was closed b/c of such a thin layer of play.
also, there are no offers in rapides tms now.
The EOG Vernon Parish permit is a TMS well.
skip, thank you. I also thought this was the case, and I did think it was strange
that this person thought it was for south rapides. I will dig deeper.