Replies to This Discussion

Permalink Reply by jffree1 on May 31, 2009 at 14:33

Hmmm...

Permalink Reply by Mike on May 31, 2009 at 14:39

What do you think? Cabot is probably not all that excited.

Permalink Reply by ALongview on May 31, 2009 at 16:22

Seems upbeat about the gas and pressure that they saw on that well. The following are from two different sections of the conference call from Q4. I didn't include the same that was repeated in the Q1 call. Interesting that they differentiate the Bossier from the Haynesville but say that there are three seperate zones that look to be productive on horizontals. Is that the James Lime, the Bossier, and the Haynesville Lime? Thoughts on the three zones he is speaking about?


At County Line, the deep vertical exploration project was successful. And while we are not disclosing the specifics of this I will say that the pressures and the test add in the three zones that we tested give us a great deal of optimism on what future we have in this area for the play. With these areas focused in mind for 2009, we are going to drill 70 wells in East Texas of which 20 are in Minden, 38 are in County Line, and 12 are in other areas of the region including outside operated. Of the total $475 million program for 2009, this region in East Texas will receive about half of it.

if I feel like I am dancing around some of the issues or results I am. We have tested as we mentioned three zones and we have tested three zones at levels that would give us encouragement that each zone could be exploited for future evaluations with horizontal wells. So, how much area does that open up I will let you be the judge. The stratigraphy, the section is in a very thick overall section from the Bossier section down into the Haynesville section. It is a very big section. So, differences in stratigraphy within that entire growth interval is going to be fairly consistent over I would think a large area.

Again we don't have a lot of deep tests to make that correlation but we do have deep debts that have seen that entire strat section that we are correlating with. We certainly have seismic through the area that we can look at the overall section and we can see consistencies over a large area in the entire strat interval. Buying with the -- it might be a question on what competitive advantage do you have with keeping information quite. What we are leasing in the area, others may continue to lease in the area. We are going to lease with actual knowledge and we'll base what we pay on a bonus per acre based on our actual knowledge. Others might lease in the area but they are not going to have the exact knowledge on what to pay per bonus and how much risk they're going to assign to the acreage that they might pick-up.

So all I can say right now and I got ahead of myself when I talked about, our new initiatives in the Minden area and we've tested these vertical wells in the Haynesville Lime. And we're excited about our horizontal play in the Haynesville Lime and I've been talking about that operation for six months. And here I'm at the end of the game with wells completed and test results and I still have nothing to show for it. That's not a comfortable position that a CEO likes to find himself in. And I'm not comfortable with those results. I am not going to get ahead of myself in talking about what good results we have in vertical well in County Line. I am going to say that we are optimistic and we have seen a big section, high pressures in gas but again it is an area that we will probably duck or tale a little bit until we are able to show tangible result.

Permalink Reply by intrepid on May 31, 2009 at 16:39

Doesn't sound good but that area has seemed to do well for Cabot.

Permalink Reply by intrepid on May 31, 2009 at 16:49

Anyone checked to see how far this well is from the KVG#3?

Goodrich Petroleum completed the Endeavor Well No. 1 to 12,115 feet 14.4 miles southeast of Nacogdoches in the Gates Field. On a 20/64-inch choke the well potentialed 10.089 million cubic feet of gas in the Travis Peak formation.

Permalink Reply by ALongview on May 31, 2009 at 16:59

it is pretty far away. What are your thoughts on the three zones they tested and see as being productive on horizontals? Whatever they are this certainly seems like it will extend the life of the production in the area.

Permalink Reply by jffree1 on June 1, 2009 at 2:25

Just some of my thoughts...

Possibly Bossier Shale, Haynesville Shale and maybe the deep lime. They already know they have James Lime.

I think they did mini frac if any and needed to report the well so that's what they put out. It was a test well.

They are probably more concerned at this point with getting their (PXP) acreage HBP. Some of those leases have roughly 12 months left to be produced before options run out.

Not much fear of another land rush unless gas price improves... substantially. And for those who need it... credit has to become more readily available. Not happening this summer IMO.

Permalink Reply by Cheerleader on June 1, 2009 at 8:56

Jffree,
I have been thinking about this since ALongview posted this information. I agree. They were to excited about this last fall and subsequent to drilling at approximately 10,000ft. Lessor's "inside guy" has been reporting high expectations and good test results. They had to report something and they know there has been a great deal of speculation on KVG #3. The conference call even reflects the concerns about the unleased acreage.
Gee, why would we be cynical?
Lessor....what do you think???

Permalink Reply by jffree1 on June 1, 2009 at 11:05

Cheerleader, They are still positive about the area but why would they hype up the area when they can still lease for 500.00 or less per acre? The fewer hogs (O&G) at the trough, the more slop for those who are already there...

O&G were like moths to a flame last summer. No... more like lemmings over a cliff, in some cases, because of all the hype about the HA Shale. Now it turns out that the learning curve AND the decline curve on those wells are both really steep and the wells are incredibly expensive to produce. If they can make one work it pays out pretty fast but learning how to make them really produce well is proving tricky, it appears.

The best thing to come out of last year was the knowlege that we are not at the mercy of OPEC if we will only make use of OUR NG. Now, once that notion takes hold, and along with the lower rig count, maybe the price of gas will increase and stablize for awhile.

So just plan on watching and waiting for awhile...

Permalink Reply by jffree1 on July 30, 2009 at 9:39

The KVG #3 is reporting in the Bossierville (Bossier Shale) field on the July 1 Gas Proration Schedule. The only other well reporting in that field was the Red River 877.
Bossierville field was not on the June 1 schedule.

http://www.rrc.state.tx.us/data/production/proration/gasdist6-1.php