Been a long time since I've posted but thought it was time to reconnect and refocus. I just received Exco's 3rd Quarter Earnings statement. A few statements left me curious.

1) I have heard of cross section laterals as typically they run North and South. But Are they extending a lateral just short of a fault? My thinking this may be the best way to drain that part of a section. Also, has any other company attempted this? If these laterals cross section lines, I can understand the > 4200' laterals.

2)Refracing Haynesville wells already? I remember as the play unfolded, it was found multi-stage fracking yilded better results. As I recall, some laterals were stimulated in 11-15 sections as opposed to the handful of sections on the early wells. Is this refracking planned for the "older" Haynesville wells?  

I've attached a copy of the entire earnings release. Here is the excerpt from the East Texas/North Louisiana section:

In the East Texas/North Louisiana region during the third quarter 2014, we operated an average of six drilling
rigs primarily focused on manufacturing in our core area in DeSoto Parish, Louisiana. In DeSoto Parish, we
drilled 15 gross (8. 9 net) operated wells and completed 5 gross (3.0 net) wells during the quarter. We had an
inventory of 12 gross (6.7 net) wells that were drilled and waiting on completion in DeSoto Parish at the end
of the quarter, most of which will be turned-to-sales in the fourth quarter 2014. We have continued to
optimize our well design by increasing the amount of proppant used in the hydraulic fracturing process on
completions during the quarter. These changes in our well design are expected to improve our well
performance and estimated ultimate recoveries. We are also in the process of completing our first cross-unit
development in DeSoto Parish that includes drilling 5,000 to 7,000 foot laterals into a section bisected by a
fault. The laterals on the cross-unit development are longer than our typical laterals of approximately 4,200
feet for Haynesville shale wells in DeSoto Parish. We plan to turn these wells to sales during the fourth
quarter 2014.
In the Shelby area, we completed 2 gross (1.0 net) wells on the last day of the quarter. In addition, we have
plans to complete and turn-to-sales 4 gross (1.9 net wells) in the fourth quarter 2014. Prior to 2014, our
activity in this area has historically consisted of delineating the acreage, establishing infrastructure, and
performing technical evaluations. Our drilling program during 2014 was designed to include enhanced
completion methods, longer laterals and a more restricted flowback program. As part of our restricted
flowback program, we have been managing the choke size to limit the production of the wells to 10 Mmcf per
day. The restricted flowback limits the initial production of the wells; however, we anticipate it will increase
the estimated ultimate recoveries. We have been encouraged by the results of the wells turned-to-sales in this
area during 2014. The more conservative flowback, along with the other design changes, are yielding strong
well performance as evidenced by a minimal reduction in flowing pressures over time. We drilled 8 gross (3.9
net) wells in the area during 2014 which includes 5 gross (2.4 net) in the Haynesville shale and 3 gross (1.5
net) in the Bossier shale. We are experiencing similar strong results from both the Haynesville and Bossier
shale wells. We have approximately 250 operated undeveloped locations in this area which provide a platform
for future growth.
We have spud a test well in the Bossier shale in DeSoto Parish in the fourth quarter 2014 to further assess the
potential of the formation. The Bossier shale lies just above certain portions of the Haynesville shale and
contains rich deposits of natural gas. We will utilize our technical expertise and recently enhanced completion
methods that have proven to be successful in our Haynesville shale development. We will evaluate the results
of the test in DeSoto Parish which could result in the addition of a significant number of drilling locations.

We completed our first refrac stimulation test on a mature Haynesville shale well in a fully developed unit
within DeSoto Parish during the third quarter 2014. This test consisted of a second fracture stimulation
treatment in an existing well to re-stimulate the shale reservoir. The refrac stimulation resulted in an increase
in production for this well of 1.4 Mmcf per day on a more restricted choke as well as an increase in flowing
casing pressure of 3,000 psi. The well continues to perform well as evidenced by the minimal reduction in
production and pressure in the three months since the refrac stimulation. We expect to perform a similar
treatment on other wells in the region and have plans for three additional refrac stimulation tests during the
fourth quarter 2014. We have identified more than 270 operated Haynesville shale wells that are potential
candidates for this treatment.

Tags: Exco, refrac

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Replies to This Discussion

Nice to hear from you! Let's see if we can find some answers on this.

Thanks Keith! The sites look great as usual! Keep up the good work!

I think the cross section laterals you are looking for are in 010-14N-14W.  They extend down into section 15 which has a fault in it.  well S/N 247839,247901,247902,247903,247904.  All have different lateral lengths since the fault angles across the section.

Thanks full name, I'll take a look!



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