Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2011 at 7:36

Jen.  I do not have any inside information regarding EnCana's Haynesville drilling plans.  My best assessment of your area is that EnCana has dropped it from any near term development schedule.  I base this on the fact that EnCana has allowed well permits to expire in adjoining sections 28 (4/26/11) and 30 (3/27/11).  EnCana announced in February that they were allowing 12,500 leased acres to expire in the SE area of the Play.  I believe that both 12N-9W and 11N-9W are included.  The well you mention in S29 - 11N - 9W was completed some months back and announced about 6 or 8 weeks ago.  The EnCana John Mondello 29H is an above average Haynesville horizontal well.  IMO, EnCana did not drop this acreage because of the geology.  They did so as part of a company wide strategy to shift drilling dollars to other plays with better economics.  My best guess is that there will be development interest in this area in the future.  Good Luck.

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Permalink Reply by Henry on July 6, 2011 at 12:06

Skip,

I don't get it.  (I seem to be confused on many things on this site this week.)  John Mondello was a great well -- pressure over 10,000 psi, if I remember correctly.  Why would EnCana drop acreage in this area, while still drilling alternate unit wells right and left up in 14N-14W?  Is it because they didn't have the sections "locked up" and would have to invest in more leases to fill out the sections?  Someone, please help me understand this.

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Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2011 at 17:10

It's simple economics.  The Mondello wells are good producers not far north of the Semp Russ which is a barn burner.  However ECA had plugged and abandoned the Waller Family well just to the east of Semp Russ and the Lewis Interests well east of the Mondello wells was a bust (less than 1MMcfd).  The EnCana February webcast makes it crystal clear that the "challenging" areas of their leasehold are being abandoned in favor of investing development dollars in alternate unit wells where there are no challenges and no need to build new infrastructure.  EnCana had the sections "locked up" as you put it and chose to drop the area for purely financial reasons.

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Permalink Reply by D Doe on July 8, 2011 at 10:15

Hi Skip,

 

I've heard that some seismic testing is going on still in that very area, even post-Waller and post-Lewis Interests results... would they still do seismic if they knew they're not going to re-lease or is this completely unrelated?  Thanks in advance.... 

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Permalink Reply by Skip Peel - Mineral Consultant on July 8, 2011 at 11:01

Hi, D Doe.  The seismic shoot was over some time back.  There is no current activity that of which I am aware.  There have been no new ECA and SWEPI permits in this area for a while and a number have been allowed to expire undrilled.  The last of those is the Jans Minerals which expires Tuesday.  That's it.  The large number of leases being allowed to expire was evident early in the year.  Then the formal public announcement that the companies were letting 12,500 acres expire in February.  ECA and SWEPI have pulled out of the far SE corner of the Play and are now fully developing units further north and west.  If you would care to listen to the webcast audio, here's the link.  Start listening at the 44 minute mark.

 

http://event.on24.com/clients/default/presentation/default.html?tit...

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Permalink Reply by D Doe on July 8, 2011 at 12:30

Many thanks, Skip...

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Permalink Reply by Les Bamburg on July 6, 2011 at 17:21

Henry, the John Mondello well was 6 miles from the section in question and a lot can change over that distance.

 

EnCana has quickly moved into "Gas Factory" mode with the majority of their drilling rigs which lowers cost and generates earnings to meet their growth target.

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Permalink Reply by Parkdota on July 6, 2011 at 8:58

Call Jason in the Encana mineral owner relations center.  214-242-7270.  Give him the specifics and maybe he can help you out.

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Permalink Reply by Les Bamburg on July 6, 2011 at 9:33

Jennie, EnCana/Shell have maintained significant drilling activity in the Haynesville/Bossier Shale and this will likely continue at ~ 20 drilling rigs.  Most of this activity is focused on certain core areas of the play in northwestern Red River Parish and DeSoto Parish. 

 

Even though you have two years remaining on your lease, there is a low probability of your section being drilled before the lease expires.  The well you mentioned in S29-T11N-R9W was drilled in early 2010 and is located about 6 miles west of your acreage.   

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Permalink Reply by bshelby on July 6, 2011 at 10:16

Know of any activity around S25-14-9 in Red River parish, would greatly appreciate the heads up.

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Permalink Reply by Les Bamburg on July 6, 2011 at 17:18

BS, I am not aware of any current activity in your neck of the woods.

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Permalink Reply by bshelby on July 7, 2011 at 4:14

Thanks Les.

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