Indigo Minerals has applied to the state to form 2 Haynesville Shale Units (HA RA SUY and HA RA SUX) in the King Hill Field.  The application also includes 5 HC (Horizontal Cross - long lateral) wells.  Since the sections/units are undrilled, these 5 wells will serve as "unit wells" and, if drilled and found to be productive, will hold the leases covering those sections.  These units if fully developed would mean the drilling of 54 to 72 horizontal wells (6 to 8 wells per unit depending on how Indigo chooses to space them).

This is an area that was deemed non-economic by a handful of early wells.  However the willingness to explore these areas (and there are numerous others) is the result of the new well designs.  Though many choose to focus on the lateral length, that is more of a cost saving to the operator than a boon to the mineral owner.  Where the mineral owner does benefit is in the "high intensity" completion designs (shorter frac stages, more perforation clusters and massive amounts of sand and water).  The early Haynesville well designs pumped anywhere from 1000# to 2000# of sand per linear foot of perforated lateral.  The new designs pump 3000# to 4000# and stimulate a much larger volume of rock.  The cross unit laterals do provide one additional benefit for everyone.  The elimination of the "no perf" zone.  Prior to the approval of cross unit laterals, there could be no perf cluster (and thus no production) closer than 330 from a unit boundary.  Now as wells drill north south, they stimulate rock that never before contributed to production.  Potentially another 80 acres in a 640 acre unit equal to an additional well at 8 well per unit spacing by eliminating the no perf zones on the north and south ends of each unit.

It will be interesting to see when Indigo begins to explore this new area of interest and to follow their progress.  Use the link below to view the unit and unit well plats for this area along the Red River and Natchitoches parish lines in the King Hill Field and the Redoak Lake Field.

INDIGO%20KING%20HILL%20REDOAK%20LAKE%20UNITS-WELLS.pdf

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in regards to new well designs - indigo is getting good results out of the smith wells just up the road in the chemard lake area- 27mcf/day each with the two mile laterals.  Indigo currently has two drilling rigs drilling side by side in the chemard lake field drilling 1.5 mile laterals each for a total of 4 wells off that well pad.  the well pad for one of the sections mentioned above in king hill (section 36) is almost complete.  southern area of the play is finally getting some attention.

252199 and 252200 production is now posted on Sonris.  On a scale of 1-10, how would you rate the quality of these wells?  Also, are these wells considered to be in the Haynesville or Bossier?

They are both good wells according to the Initial Production data.  A 24 hours IP, even after 24 days for the wells to clean up, is not what most industry types would hang their hat on.  IP 60, 90 and 120 are much preferred but of course not available for these wells at this point in time.  I tend to look first at the choke setting and flowing pressure, not the 24 hour IP volume.  252199 has a FP of 10,563 psi and 25220 is 10,413 psi.  Reminds us that one of the main attributes of the Haynesville Shale is that it is "over pressured".

The landing depths are close 13,438 TVD and 13,401 TVD, so same formation.  From the few other wells in that area for comparison I'd guess these are Haynesville Shale wells, not Bossier.  There are relatively nearby Bossier wells and from memory they are about as productive as the Haynesville wells drilled in the same sections.

Based on just the IP data, I'd give 'em an 8 on a scale of 1 to 10.  I'd take'em fo sure.

I received a notice of intent for Indigo to apply for a permit to create units in the San Miguel field.  One of the units includes unleased land I own.  Is that usual or do they usually lease land before applying?

Paw, have you had a lease in the past?  Is your ownership of the mineral rights clearly evidenced in the public record?  How many acres do you own?  Obviously, lots of elements to seeking an answer to your question.

Yes ownership is clearly evidenced.   Leased first to XTO several (7-8) years ago.   Total of 30 acres in 2 adjoining sections.  Most recently leased 10 acres a year ago to Indigo.  The other 20 acres is in an adjoining section outlined on maps as part of a to-be-created unit, but is presently unleased.

Is this a very recent application to form a new unit?  If you haven't heard from Indigo in regard to the newly created unit by the time that application becomes a Field Order, you might want to check with them.

Information was posted on Department of Natural Resources website today.  Hearing will be on 12/17/19.

Saw it late yesterday.  Interesting unit shapes for HA RA SUZZ and HA RA SU53.  Maybe designed around a fault.

The number of Indigo rigs in Natchitoches Parish has dropped to 2 and I have not seen them file for any additional permits.  It seems as thought the wells that have drilled in San Miguel Creek are producing fairly good.  I hope they are only slowing down drilling for a short period of time.

George, you are correct that there are no live, undrilled permits for Inidgo in Natchitoches Parish at this time.  In order to have an idea of what leasehold remains undeveloped, it would take a deep dive into how many horizontal well slots have been approved by the state and how many have been drilled or are currently drilling.  For as long as Indigo has had multiple rigs deployed to those Natchitoches leases, it is possible the company is nearing the end of this phase of development.  I've got all the data but it would take time to determine that.

Skip,

Could you explain what the Indigo hearing application on 9/29 is about?

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