I have beaten this drum many times before, but now it seems to have some traction from one of the biggest "how big of a flow rate can we announce?" operators.
Jay

During 2010, Petrohawk plans to expand its use of restricted rate production practices in the Haynesville Shale, which has already been accounted for in the Company's 2010 production guidance. For wells brought on under the restricted rate program, initial production rates are expected to average between 7 and 10 Mmcfe/d. Delineation wells will continue to be produced under normal production practices (standard choke size of 22/64" or 24/64"). Based on the results of a 2009 pilot program, Petrohawk believes that in certain of its Northwest Louisiana development areas, wells produced from a smaller choke size may produce approximately equivalent amounts of natural gas in a twelve month period as a well produced on a standard choke size. The Company believes that its restricted rate practices in some areas may create a more stable future production base for the Company and could result in higher EURs compared to neighboring wells produced under normal production practices.

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Good information ShaleGeo. Will the 18/64 choke be considered the smaller choke size or will they even be smaller? Thanks for the info
smaller
Harley, I think it was more like a 14/64" choke.
Jay, Questar is also now restricting initial flow rates and monitoring performance. Two potential factors mentioned for performance impact were (1) partial fracture closure or (2) uneven de-watering on flowback.
Keep beating it (along with the vertical drilling v. horizontal). This 2 issues will determine the value of our minerals long term.
Keith, can you clarify the vertical drilling v. horizontal issue?
Thanks,
Lodwick
Actually, the reserves in each are the same, it is just a matter of how much area is drained. The horizontal well will drain a larger area, but whether there is 16 wells or 32, it just matters that what the total drainage area that is effectively drained really is.

The choke problem is interesting, and typically the EUR is affected by the choke. Total open flow can damage a hole almost immediately under unfavorable circumstance (e.g.- high formation pressures.) I do find some wells where a catastrophic cessation of production is not well understood, but may relate to flowing too high volumes causing a casing collapse.
ShaleGeo, et al.......One thing I heard them clearly say on the Petrohawk call was that they were going to further test and use the restricted rates in approximately 80% of the play to reduce decline rates and maintain pressures longer. However, they also clearly stated that in the best 20% of their acreage, where the perm and porosity were the greatest, it would serve no purpose and that they would continue to produce those wells on regular chokes, which I took to mean 22 to 24/64. They indicated that in these wells, the pressures and production were holding up better than those in the other 80%. They also indicated that in these wells the EUR's were up to and possibly exceeded 15 B's per well. That is stronger than Nellie's breath! Your thoughts about this?
Jay has been saying that Elm Grove is the best rock.
goshdarn, can you define "good rates"... is that number inline with the anticipated decline of 80-90 % for the first year?
kj
thanks gd. thats certainly less of a decline rate than ive seen. thanks for posting that. i'm in texas and dont use sonris. it seems like a much better tool than we have on the texas side.
kj
Headed to the farm, Jay?

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