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.
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.
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.
Could you explain what the Indigo hearing application on 9/29 is about?
Yeah, George, the application is confusing. First note the "X" mark across the title box in the lower right corner and disregard Exhibit 1 as it was originally approved in December 2019 and is being superseded by this application, Docket 2020-295. Now look at Exhibit 2. Re SU53: the solid line is a previously proposed unit well that is being replaced by the dotted line substitute unit well. Usually a solid line that is not entirely straight is used to show the "as drilled path" of an existing well but that will was never drilled, just approved in that 2019 order. The dotted line well with surface location in Section 6 - 9N-10W replaces it. Re SUNN: The solid line appears to be Serial Number 252200, drilled and now in completion operations, that is meant to replace the previously approved but undrilled unit well shown as a dotted line in Exhibit 1 in sections 29 & 33. I hope this makes sense, I had to look at the wording of the application and print out the two exhibits to place them side by side to get it straight.