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Permalink Reply by Les Bamburg on September 7, 2011 at 5:14

WH, most operators have suggested plans to drill 8 Haynesville Shale wells per 640 acre section but there are some sections being developed with 6 wells per section.  EnCana/Shell are also developing a group of 3 adjacent sections with 14 extended lateral wells in addition to 3 existing wells.

 

Sections with both Bossier Shale and Haynesville Shale could have 12 to 16 wells.

 

Time frame for drilling additional wells in a section is extemely variable dependent on several factors.  

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Permalink Reply by Hopeful About Natural Gas on September 7, 2011 at 10:07

I don't think many sections have more than one well right now. I could be wrong, and I do not work in the O&G business. However, It only takes one well to hold a section by production. I am in the same boat you are as minerals owner.

 

The companies are letting lots of leases go because the prices are so low. They don't have to drill more than one hole to hold the lease, so why not drill in another section and hold that acreage too?  I am assuming that the section is not in a sweet spot or other factors that would make it more desirable to drill a second hole instead of drilling in a new section to hold that lease.

 

Where is your land located?  The more specific you are the more likely some of the pros here will know something about it.

 

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Permalink Reply by Skip Peel - Mineral Consultant on September 7, 2011 at 10:43

Hopeful, actually almost all the major Haynesville/Bossier operators have transitioned to full development drilling.  Chesapeake was the second to last and now we're hearing that Petrohawk will do so soon.  The majority of new permits are now for alternate unit wells.  Certainly it will take some time before all sections see  alternate unit wells but the price of nat gas makes it a logical progression to move from step out drilling to full development as the cost to produce an mcf is lower.

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Permalink Reply by Craig Wascom on September 7, 2011 at 15:59

Hi Skip

How would these numbers apply to the Austin Chalk in Pointe Coupee. Would the price of oil cause the progression to full developement to move faster or will they still go through the drill and hold by production phase?

 

Thanks for your knowlege

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Permalink Reply by Skip Peel - Mineral Consultant on September 7, 2011 at 16:15

Too early to know, Craig.  Much will likely depend on the size of each company's leasehold and the wells required to retain it.  There is a material difference in the dynamics between oil plays and gas plays.  Oil may be stored in a tank and transported by truck.  Natural gas requires a pipeline connection to market.  Have you determined what completion operations are being employed in the horizontal AC wells?  For example, are they acid fraced?

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Permalink Reply by Craig Wascom on September 7, 2011 at 16:21

No technical information leaking out yet. Anadarko had a major presentation today. I missed it live and have not had a chance to see the replay. Might get to it before I go to sleep.

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Permalink Reply by Craig Wascom on September 8, 2011 at 15:06

From Pryme

A completion rig is planned to be on site later this week to perform the acid stimulation of the Austin Chalk formation and commence the production flow test of the Deshotels 13H No.1 well

Read more: AvoyellesToday.com - Flow testing within next two days set for seco...

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Permalink Reply by Les Bamburg on September 7, 2011 at 16:07

Hopeful, 253 sections in Louisiana have more than permitted and/or drilled Haynesville/Bossier Shale well.  This is reflective of most acreage having already been held by production and operators shifting to development mode.  55% of the current drilling rigs working on the Haynesville/Bossier Shale in Louisiana are drilling the 2nd or more well in a unit.

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Permalink Reply by Hopeful About Natural Gas on September 7, 2011 at 16:28

Damn, it just goes to show that a little bit of knowledge is a dangerous thing :)

Thanks guys, I stand corrected - gladly if there is a better chance of folks getting another well.

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Permalink Reply by Les Bamburg on September 7, 2011 at 16:32

Hopeful, just like real estate it is all about - location, location, location.

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Permalink Reply by Craig Wascom on September 7, 2011 at 16:37

No problem hopefull some of have waited for so long we look for any info that gives us hope. Rest easy in knowing the minerals are there and if you don't see it you children may.

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