Replies to This Discussion

Permalink Reply by tony allen on September 19, 2013 at 16:50

Thanks Obed, it would be good to see someone try a horizontal CV in Claiborne, Do you know anything about CSC?

Permalink Reply by obed w odom on September 19, 2013 at 17:52

No, Tony, I had not heard of CSC Energy before. I wonder if it has some connection to Petro-Chem, since  CSC's Lower Cotton Valley RA SUA is identical in surface extent to Petro-Chem's Smackover RA SUP, and CSC in the amendment (pg 5) to their unit application asks permission to commingle production from the Smackover and Lower Cotton Valley in any wells drilled within this unit. It seems that commingling would only work for vertical wells, but they may be planning later horizontals if the verticals look good. Petro-Chem may also be considering horizontal Smackover wells since their Smackover RA SUP is also 640 acres.

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2013 at 2:02

obed, the 640 acre units are pretty standard for CV units (gas).  And you are correct, to commingle the two zones would require vertical wells.  CSC is a small independent out of Shreveport.  They have never drilled a horizontal well to my knowledge.  I don't think we will see any horizontal development out of CSC.  However if they can successfully commingle the SMK A and the LCV that could encourage more small  operators to try that approach.

Permalink Reply by obed w odom on September 20, 2013 at 3:15

Thanks, Skip. I had not realized that CV units as large as 640 acres had been used before. Lookjng at  Field Order No. 9-M-22, establishing the Smackover A RA SUP, I see that several Smackover units adjacent to that also contain 640 acres, so I guess this does not necessarily mean that horizontal CV or Smackover wells are planned for these units. I had thought that the usual unit sizes for Smackover and CV units were 160 acres.

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2013 at 3:42

You're welcome, obed. Units formed for the production of gas are always larger than those for oil as the Office of Conservation considers that the ability of gas to migrate over distance to the perforations in a wellbore is greater. In other words a gas well is capable of draining a larger area than an oil well. Gas units were traditionally 320 or 640 acres regardless of the specific zone or interval unitized,  Now they seem to be whatever an operator may request and the O of C will approve.  The precedent is established and wherever horizontal development is contemplated in the future I expect units will be larger than 640 acres.  Section and one half and two section units now seem to be the norm.

Permalink Reply by obed w odom on September 20, 2013 at 4:38

I do note that most of the Wildhorse Resources LCV RA units in Lincoln Parish have about 640 acres, and several of these have horizontal wells, for example LCV RA SUG;D NOBLES ETAL 13H, serial #245037. So there is precedent for 640-acre LCV RA horizontals, whether or not these are contemplated in the Lisbon Field.

Permalink Reply by Skip Peel - Mineral Consultant on September 20, 2013 at 4:50

obed, there is usually specific language in unit applications regarding the intent to drill horizontals.  If you read through the unit applications filed by Wildhorse, not the earlier Petrohawk unit apps, I think you will see the clause which refers to the casing being cemented above the target formation.  Exact verbiage escapes me at the moment and I'm headed to the mountains so no time to look it up.