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Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2018 at 12:43

Tellurian bought out Samson, not BHP.  Steve, what you refer to are applications for alternate unit well spacing.  Most get approved upon the Commissioner's public hearings and then become a Field Order.  That Field Order is effective indefinitely but is not a well permit.  Tellurian would still need to apply for a permit to drill for one or more wells.  The Tellurian units aren't great rock and the original unit wells are probably largely depleted.  Eventually Tellurian will have to drill to hold the leases.  There is little incentive to drill more than a single well to hold those leases but the Field Order would allow them to come back and drill the other wells when their LNG facility is up and running and they need the gas as feed stock.

All Haynesville Shale drilling and production units include the Bossier shale in their depth description.  Therefore you will never see an indication in the well name as to which formation is being drilled.  The unit designations whether A, B, C or D are all Haynesville Shale.  All the same.  Yeah, I know we debated over this ten years ago before discovering that there are not separate formations,  It's just the way operators choose to apply for units.

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