Replies to This Discussion

Permalink Reply by obed w odom on August 29, 2014 at 18:26

Somewhat faster progress was made this week in the Stovall 17 H #1. It is, as of 8/29/14, at 11345 feet, but there is still a way to go.

Permalink Reply by obed w odom on September 5, 2014 at 15:53

Nabors Drilling reports the Stovall 17 H #1 drilling ahead at 11955 feet as of 9/5/2014. At this rate it could take another 2 months to reach total depth.

Permalink Reply by obed w odom on September 13, 2014 at 3:20

As of 9/12/2014, the Stovall 17 H #1 was drilling ahead at 13348 feet, indicating much better progress in the past week, but the well is still about 2350 feet short of its original projected measured depth.

Permalink Reply by Skip Peel - Mineral Consultant on September 13, 2014 at 3:23

At 75 days drilling, it is becoming a very expensive well.

Permalink Reply by LMC on September 14, 2014 at 1:00

I was over there yesterday, they have already started putting down the gas line.

Permalink Reply by obed w odom on September 20, 2014 at 3:38

The Stovall 17 H #1 is now at 14283 feet, 935 feet deeper than last week. At this rate they might be at total depth in about 2 more weeks.

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2014 at 3:41

In two weeks they will be approaching 100 drilling days.

Permalink Reply by jim weyland on September 20, 2014 at 4:17

skip,

this may be a dumb question: is there a rule of thumb for the effective daily cost of drilling a horizonal haynesville well?

thanks,

jim

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2014 at 4:42

Not dumb, just difficult to answer.  A couple of years ago a top drive rig in the 1500 to 2000 HP category (required to drill horizontal wells with MDs in the 15,000' to 22,000' range) probably went for ~$20,000 to $24,000 per day to the best of my recollection.  The rig fleet has changed a lot since then with older. less powerful rigs being retired and major drilling contractors investing in more powerful rigs with new technology.  Rigs powered by CNG/LNG are becoming more common but the most coveted ability is to "walk" or "slide" around a surface location in the act of "pad drilling" multiple wells.  I haven't seen any recent dollar figures for those rigs but I'm sure the day rates are higher.  Of course the cost of the rig isn't the only cost of daily drilling ops.  Here's a cut-and-paste from a recent article on the state of modern drilling rigs.

While not 100% a land-focused driller, Bermuda-based Nabors Industries (NYSE:NBR) does feature the largest land drilling rig fleet in the country- at 445 rigs. Perhaps more important, NBR has been switching out its older land rig fleet into a highly-specialized one. Its new “walking rigs”- which allow firms to drill multiple wells from one well pad- have been booked for rent even before they’ve finished being built. That’s helped NBR’s bottom line and the ability to begin paying a dividend. Likewise, slightly smaller rival Patterson-UTI Energy (Nasdaq:PTEN) has expanded its advanced rig offerings. Both firms offer a great play on rising day rates for rigs.

Permalink Reply by jim weyland on September 20, 2014 at 7:12

skip,

thanks.

i guess i was trying to do something in a simple fashion when in fact your post above shows that it's not necessarily that easy.

my idea was that one could come up with at a generic ha ra well cost, all in: drilling/casing/completion.  then come up with a generic days to completion and divide the latter into the former to come up with a generic daily well cost.

jim

p.s. my dad always said that if there was a laziest possible way to do something, i'd find it. and, i always told him that i wasn't lazy, i was only trying to be a good steward of the resources with which i was entrusted.

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2014 at 7:25

I don't think you can do it that way, jim.  Too many variables.  Do you want to use the old ~4600 maximum lateral length or the more current HC model which by now maybe approaching  ~7000'? Plenty of data on the former and very little on the latter.  Do you want to figure drilling days for a single well or multiple wells in a pad drilling operation?  If multiple, how many?  You'd also have to figure an average TVD and MD.  A calculation of average drilling days would be about as inaccurate as determining royalty income from a generic royalty calculator.

Here's what I do.  I wait until the operator has turned in their paperwork to qualify for their severance tax exemption and then I look up the well cost in the form which can be accessed on the database. 

Permalink Reply by jim weyland on September 20, 2014 at 7:43

you've convinced me.

thanks, again.

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