Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 4, 2013 at 11:15

This new vertical test is located halfway between the discovery well (Weiser-Brown Exxon-Mobile #2) and the currently drilling Dean 31-22-1H 1-Alt.

Permalink Reply by tony allen on April 4, 2013 at 15:59

Any opinions about why SWN would drill this verticle well at this time? Skip?

Permalink Reply by Rock Man on April 4, 2013 at 16:21

Pilot well for more science (core / high tech logs) and/or monitor well for micro seismic?

Permalink Reply by Skip Peel - Mineral Consultant on April 5, 2013 at 1:56

IMO SWN bit off a huge chunk of leasehold with very little well control based largely on the Weiser-Brown Exxon-Mobile #2.  I have stated in past discussions that one approach to surveying the Brown Dense would be to drill vertical wells (pilot holes would be a good way to describe them, Mark) across a wider expanse of that leasehold based on the science generated by the early exploration wells.  The pilot holes can be drilled for less than half the cost of a horizontal yet still produce the science required to determine productive areas of the BD.  There is no need to go to the trouble to form units and designate fields in order to accomplish this.  Just permit wildcat wells and if they find good rock case them for later re-entry and a horizontal leg.  Keep in mind that everywhere a producing well is completed, it requires a pipeline connection.  Building pipelines to isolated individual wells is not cost effective to say the least.  SWN (and partners, if any) need to be in a position to make decisions to retain acreage through the drill bit or by lease extensions as the expiration of primary lease terms near.  Even with 4 year primary lease terms there isn't a lot of time left on a very large unexplored area.  

Permalink Reply by Bubba on April 5, 2013 at 8:23

Skip,

Several weeks ago SWN, through Gordan Arata, sent out a Pre-Application notice for the unit for this well. It is 1280 acres and is located in sections 15 and 22, T22N, R1E. So it looks like a horizontal.

 

Permalink Reply by Skip Peel - Mineral Consultant on April 5, 2013 at 8:34

Bubba, it's not unusual for a well to be permitted initially as non-unitized and then amended (and renamed) as a unit well later.  If no one on the Interested Party list requests a pre-conference hearing the application should appear soon on the Commissioner's Public Hearing Schedule.  Can you upload a copy of the notice letter or at least the plat?  Or please post the field name that SWN is giving to the proposed unit.  Thanks for the information.

Permalink Reply by Bubba on April 5, 2013 at 9:18

Skip,

Attached is the application.

 

Attachments:

• Tick Creek Field Unit Application.pdf, 1.8 MB

Permalink Reply by Skip Peel - Mineral Consultant on April 5, 2013 at 10:13

Ah, Tick Creek Field.  Has a nice ring to it I believe.  LOL!  I hope it makes good wells. Thank you for posting the application.

Permalink Reply by obed w odom on April 6, 2013 at 7:44

Now that SWN has 3 recently permitted wells in Union Parish, the Upshaw 6-22N-2W H, the Plum Creek 13-23N-2W H, and the Sharp 22-22N-1E vertical, I wonder in which order they will drill these. To make the Sharp a horizontal, I would think they will have to wait until the unit is approved, but maybe they will drill it first as a vertical as they did for the Dean. I think Mueller said at the Raymond James conference that, once the JV agreement is finalized, an extra drilling rig would be brought in, so I guess we could see 3 rigs operating simultaneously.

Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2013 at 12:35

A horizontal well may be drilled as a lease well without the formation of a drilling unit.  However considering the huge HBP job confronting SWN there is no plausible reason to do so in the Brown Dense.  As long as they don't form units and drill and complete vertical wells I think they will retain the good will of their lessors  The Hollis well permit predates the three most recent.  The original permit is still effective until the 27th.  It is easy enough to simply apply for a new permit for that location.  If SWN doesn't drill under the current permit or re-permit in the near future that may tell us something of their development plans.

Permalink Reply by obed w odom on April 8, 2013 at 7:03

SWN is not wasting any time with the Sharp 22 well. It was spudded on 4/6/13 and casing set to 2047' on 4/7/13, so it looks like it will be drilled as a vertical, and possibly converted to a horizontal later.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

Permalink Reply by tony allen on April 8, 2013 at 11:25

That is more like it. XTO drilled the Sanders Heirs well in 12 days to a depth of 11900 and AIX has been doing the SMK wells in approx. 12 days. Since SWN is going less than 10K and if they keep drilling the proposed shorter laterals,I don't see how their well cost could be over 10 million.

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