Replies to This Discussion

Permalink Reply by Robert Duke on March 25, 2012 at 5:57

Hi Les,

Thanks for the info; I presume the new data here is the TVD that indicates they are going after the Bossier?  I noted that a fairly recent well, 244006 in S11-T12N-R9W looks like Bossier to me too, in that the last TVD entry is 12673 ft.  Sound right to you?  I think this well is just a hair over 1 mi due west of the S7-T12N-R8W well, 240843, which at 13861 ft is definely Haynesville (and not a "super well").  So might one expect that Shell is now driving a strategy of just developing this area for the Bossier potential, and is thus only concerned about holding the leases in undrilled sections to Bossier depths?  It is also my guess that in the Shell-Encana partnership, it is Shell that has the sufficiently deep pockets to be drilling for leasehold in the current environment?  I note that the well 244006 had Jan production (first full month) of 178708, which sounded pretty good to me for a 13/64 choke, and also had decent pressures (> 8K).

Permalink Reply by Les Bamburg on March 25, 2012 at 6:52

Robert, I concur with most of your observations and deductions.  Keep in mind that under the EnCana/Shell JV they share development costs 50/50 regardless of who operates the well.

Permalink Reply by Robert Duke on March 25, 2012 at 7:47

Ah, good point on the 50/50.  Thanks again.

Permalink Reply by VHaddad on March 25, 2012 at 11:45

We are the land owners of the majority of the acreage in this section Shell / encana completed the well pad and were set to spud it in march. We were notified last week that they have indefinitely put this well on hold. The price of gas is just to low right now. I'm not surprised at all by this.

Permalink Reply by BLZBub on April 5, 2012 at 9:32

As of 4/5/2012 Shell has decided NOT to drill this well despite having prepared a drill pad & having a tank battery in place. At 2.20/MCF, cost/benefit ratio is no longer in their favor.

Permalink Reply by Spring Branch,mineral owner on May 11, 2012 at 5:19

Encana allowed our lease to expire at the end of April.  57.5 acres in Section 6 of T12N-R8W.  Likely prospective for the Bossier at a significantly higher gas price.  Still watching for the results on the Swepi test in Section 3 of 12/8.  Looks like a time to be patient and hope for a beter gas price eventually.