Chesapeake has recently completed two wells in Sabine Parish. These wells are obviously on restricted flow rates as evidenced by the very (!) small chokes. This makes it impossible for me to compare them to Les B's "Hall of Fame" wells that produce at >20 mmcfe/day. Is there an expert out there who would like to comment on these, and offer an opinion as to whether or not they would/could be Hall of Fame wells if the choke were opened up? The wells are:
The topic of leasing is where I want to go with this discussion.... If these wells are very good (and I'm asking for some of the experts to chime in), then people in Sabine Parish should be asking for bonuses higher than $5-6k. There are multiple reports on this site that people today are getting in excess of $10k. Maybe Sabine Parish, which also sits on top of the Mid-Bossier Shale, should command at least $10k, too??
Why should they produce high rates of gas at below breakeven prices? The wells are on small chokes with very high pressures so they probably would produce more if opened up. They are doing the royalty owners a favor by waiting for higher gas prices later.
The rising formation pressures experienced in the wells in the southern reaches of the Play, including Sabine, will necessitate production on tight choke settings to avoid near wellbore formation damage. Open the flow on one of these 8000+# wells and you can blow all your proppant out of the formation and cause it to collapse around the perforations in the well bore. Then you can write that $10M well off and start drilling another one to replace it. IMO, production on tight choke settings in areas of high pressure has absolutely nothing to do with influencing leasing.
Skip, these wells could likely be opened to larger chokes (14/64") and flowed at +/- 15 MMcfd without causing damage. The reservoir pressure is probably only about 10% to 15% higher the northern RRP wells so would not necessarily cause a loss of proppant at those higher rates. The restricted rates could be more about low natural gas prices and limited downstream pipeline capacity.
i guess I wasn't clear.... I don't want to open up the chokes. I have no desire to see anyone blown up.
All I want to know is if anyone can tell me whether these wells might be comparable, say in EUR, to the wells further north. We cannot compare them on IP because they are so choked down. And maybe we don't yet have enough data. But I'm looking for insight as to how good the Haynesville Shale is in the southern region, when we have only a few wells from which to learn.
Also, in the southern region, because of the restricted flow rates, should a mineral owner expect a low, but steady production over the first several years? (As opposed to the wells further north with their 85% decline rates.) I'm trying to understand how the southern part of HS differs from the northern part. And trying to understand if it is better or worse.
If one excludes the Bossier Shale and stays south of I-20 , I personally think in Louisiana there is as much difference between the Eastern and Western Haynesville Shale as there is between the Northern and Southern locations. This ought to raise some comments.
Yep, and as much as I would like to comment, I can't. I am off to the mountains for the holiday. Wishing Spring Branch and all the GHS members a fond farewell and a Happy Holiday Season. Do me a favor and keep this thread going until I get back. It should be interesting.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More