Replies to This Discussion

Oil & Gas ProPermalink Reply by Les Bamburg on March 16, 2011 at 5:37

Randy, information indicates most of the Haynesville Shale production in the southern portion of the play (including the Grogan Field) contains H2S and CO2 levels that exceed gas sales pipeline specifications.  This is the reason the gathering networks include amine treating plants that will lower the H2S and CO2 content to meet specifications.

Oil & Gas ProPermalink Reply by Randy K on March 16, 2011 at 5:47

What is the price difference in relation to a well with no H2S?

landownerPermalink Reply by Dee Johnson on March 17, 2011 at 14:43

What is H2S ?

Oil & Gas ProPermalink Reply by Les Bamburg on March 19, 2011 at 19:47

Dee, H2S is hydrogen sulfide.

landownerPermalink Reply by Henry on March 17, 2011 at 23:39

Randy,

I have some respondents in my survey who have deductions for "treatment."  Sometimes this can mean removal of H2S and CO2.  In one case where I can back out the numbers, it was just under 15 cents/mcf.

Oil & Gas ProPermalink Reply by Les Bamburg on March 19, 2011 at 19:57

Randy, there should not be a "price" difference as the gas is sold after treatment.  You would need to check your lease agreement and royalty statements to determine if the treating costs are deductible.

Oil & Gas ProPermalink Reply by Randy K on March 17, 2011 at 15:17

H2S is hydrogen sulfide. The gas is referred to as "sour gas.". It can kill you if it gets in the air. And if it's in your well, the gas is discounted because it has to be treated.

landownerPermalink Reply by Dee Johnson on March 17, 2011 at 16:12

Oh, not good :(

Oil & Gas ProPermalink Reply by Les Bamburg on March 19, 2011 at 19:54

Dee, the H2S is not a big deal as the levels in the Haynesville Shale are not significant and definitely not at levels to be dangerous.  Also, almost all Haynesville Shale production requires some level of treating.  The gas is not really "discounted" in price as the sale occurs after any required treatment.