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Permalink Reply by jffree1 on January 13, 2010 at 11:00

Bill J, There was a good article this morning about XOM using nitrogen to recover more oil in the Hawkins field up at Tyler.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-exxon_13...

Exxon Mobil to spend $340 million on new technology for 70-year-old East Texas oil field

January 13, 2010
By ELIZABETH SOUDER / The Dallas Morning News
esouder@dallasnews.com
Exxon Mobil Corp. plans to spend $340 million to boost production of one of Texas' oldest oil fields.

The Irving oil giant will add technology to extend the life of Hawkins Field in East Texas by 25 years and to draw 40 million more barrels of oil from the reservoir. Exxon has been producing oil at the field near Tyler for 70 years, since the company was known as Humble Oil.

The investment is an example of Exxon's return to Texas and its attention to regions of the world with stable governments.

"We've been operating many, many fields for 60, 70 years. We've got wells that go back to the 1930s. That's a very long-held commitment to the state," said Stu Jeffries, Exxon's production manager for Texas.

He said the investment, which Exxon will announce today, is "a good indication of our confidence that we've got an ongoing operation that continues to be important."

New technology could help Exxon and its peers produce more oil and gas from existing fields, rather than spending even more money on new, exotic locations. Many oil companies across the state are trying out various technologies to revive aging fields...

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Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2010 at 11:24

Bill. The new technology that we discuss most often, horizontal drilling and fracture stimulation, are of greatest benefit in "tight" formations, sand and shale. They come at a high cost and involve a greater level of mechanical risk. They will not be employed in formations that have sufficient porosity and permeability to be efficiently produced by a vertical well. Enhanced recovery techniques like the Hawkins Field mentioned by jffree1are economic at higher crude prices. And every indication that I see is that crude and refined products will be considerably higher when the global recession eases. Just keep in mind that horizontal wells and multi-stage fracing are not appropriate for all fields and formations.

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Permalink Reply by Bill johnson on January 13, 2010 at 12:15

aren't there quite a few "tight gas sands" in the country that could benefit from this technology. I read where EOG completed a CV well in Driscoll field in Bienville that was horizontal with five frac stages/ The well was completed @ 14 mmcf/day @4600# ftp

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Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2010 at 12:33

I'm not sure as to the extent of tight gas sands in our part of the world. In general, those formations that were "easy and cheap" to produce have been depleted and the price of crude/nat gas is the key to producing those with higher F&D costs. It would be good to get Shalegeo and Les B. to join a discussion that asks which prospects/formations existing in NW. LA./E. TX. are good candidates for horizontal drilling and multistage fracs. I'll give them a heads up and see if we can get more information.

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Permalink Reply by Spring Branch,mineral owner on January 13, 2010 at 13:07

The Davis Sand of the Cotton Valley is certainly one candidate.

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Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2010 at 13:14

There have been a number of CV horizontal wells permitted. Some on closer inspection are actually HA wells. I'd like to know how many are really CV or LCV horizontals.

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Permalink Reply by Spring Branch,mineral owner on January 13, 2010 at 13:24

The TVD of the completed well is an absolute giveaway it seems to me, Skip. They are typically 9500-10,000' TVD and 13-14,000 MD. Look at the Questar wells in 14/11, Sections 4 & 5 for examples. Petrohawk has the deep rights in those sections.

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Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2010 at 13:24

SB. In what areas is the Davis Sand currently productive and does it occur across a wide aerial extent?

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Permalink Reply by Skip Peel - Mineral Consultant on January 13, 2010 at 17:01

I disagree with him but I like his beer analogy. Burp!

Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2010 at 3:30

http://spe.org/spe-site/spe/spe/jpt/2007/11/jpt_2007Nov_64_114.pdf

Permalink Reply by Spring Branch,mineral owner on January 13, 2010 at 20:45

AS I appreciate it, Skip, the Davis Sand is one of the Cotton Valley members (ypically the deepest) and is the Cotton Valley member that is usually chosen for a horizontal wellbore. Jay may want to correct me if this is inaccurate.

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Permalink Reply by Spring Branch,mineral owner on January 13, 2010 at 21:01

In Section 4 of 14/11, Questar completed a CV horizontal that I referred to earlier that had an IP of just shy of 10 million/day. On January 11, Questar permitted a horizontal CV well #240683 in Section 23 of 15/10. It has an TVD of 10,022' and a MD of 14,743". It is obvious that Questar is convinced of the economics of their horizontal CV wells because they are continuing to drill them in addition to their Haynesville wells. Got to be making their mineral owners happy to have a horizontal CV and a horizontal Haynesville in the same Section.

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