EnCana Spuds First Extended Reach Haynesville Shale Well (Revised - 8/25/11)

On August 20th EnCana began drilling the first of four wells with extended laterals that will produce from two separate Haynesville Units.  The well has a permitted measured depth of 22,000 ft (including a 10,000 ft horizontal lateral) so it will be interesting to see how many drilling days are required.  The well permit is attached for information.   

 

Trinidad #133 Rig, EnCana, OB Madden 7-18 #H1A Well, SN 243657, S7(7-18)-T14N-R10W

 

EnCana had previously obtained Commission approval to drill alternate wells in this manner for three Haynesville Units in the Woodwardville Field.  Production from these wells will need to be allocated between the two units involved.

 

EnCana, Edgar Cason 7-18 #HC1A Well, Serial #243659, S7(7-18)-T14N-R10W
EnCana, Edgar Cason 7-18 #HC2A Well, Serial #243660, S7(7-18)-T14N-R10W
EnCana, OB Madden 7-18 #HC1A Well, Serial #243657, S7(7-18)-T14N-R10W
EnCana, OB Madden 7-18 #HC2A Well, Serial #243658, S7(7-18)-T14N-R10W

 

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Permalink Reply by R B on September 20, 2011 at 9:32

Hi Les-

Sorry if this has been explained in another forum and I missed it, but how are royalties divided in these multiple section laterals?

 

thanks,

 

R B

Permalink Reply by Les Bamburg on September 20, 2011 at 11:11

RB, EnCana proposed to allocate the well's production between units (sections) based on the length of perforated lateral in each section.

 

So if the OB Madden well has 2500 ft of perforated lateral in Section 7 and 5000 ft in Section 18, 67% the well's production would be allocated to Section 18.  

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