Shell is moving the Nabors Drilling #624 onto a well site in Section 3 of T12N-R8W. This location is farther east than any previous well in the Liberty Field and may be drilled as a Bossier Shale test rather than a Haynesville Shale test.
Nabors #624 Rig, Shell, Sustainable FTS 3 #H1 Well, SN 244374, S3-T12N-R8W
Andy, Redoak Lake Field.
S27-T12N-R9W, HA RA SUX Unit, Encana, Redoak Lake Field, Red River Parish
Is there something about the Bossier Shale that would make drilling into it economically feasible with gas prices where they are now? I see Les B writing that this may be a "test well" in the Bossier - if so, what does that say of Shell's perception of the future for dry gas?
CM, the economics of the Bossier Shale are generally the same as the Haynesville Shale but the quality Bossier Shale formation could potentially be better in this particular area. Shell may want to evaluate the Bossier Shale to determine if it is worth keeping the acreage for later development when natural gas prices improve.
I have a lease with Encana/Shell in Section 6 of 12/8 which expires next month. I would assume that the Bossier test in Secion 3 will determine whether they want to keep this acreage or let it go!
Well, I am at directly S of you in section 7 with a well, and have been wondering if and when they would start filling in around me for the Bossier potential. I think a lot of the lease terms in T12N-R8W were pretty good for Encana, as they got in there early before leasing got really expensive. I know the PHK maps show this area right in Bossier core; I have to believe they have a pretty idea what the Bossier looks like as they had to go through it to get to the HS. If I may ask, can they just extend your lease, or do they have to renegotiate? I think they may be more motivated if the leasehold remains cheap.
RD, if the Bossier in Section 3 is successful, I would suspect they would be a willing Lessor at a price that allows them to profit, whether that is an extension or a new lease. However, I doubt they will be very agressive at current gas price, no matter how the Section 3 well turns out!
I know what you mean. It just seems that if they are doing a bit of longrange planning, that will depend more on gas price projections, not the horribly low prices we have today, and given their "gas factory" efficiencies, they would be interested in filling in blocks of sections in this area if the Bossier looks really good, and if they could cheaply avoid getting into leasing wars, they would. It could well be that they are currently primarily driven by the need for shortterm profits in liquid plays, not longterm opportunities, though. I expect a few guys buried somewhere in the company get ulcers trying to make the right guesses on this stuff.