San Augustine, TX

Hi guys, I wish I had more to tell about the KVG #3, but Cabot is not saying anymore than what they have already said. The fact that Mr. Dinges mentioned the competitive nature of this play, is to me a great sign this could be really good, or it could be a monster, or it is meant to deflect any other questions. Time will tell, but at $4 gas it will need to be a monster. Multiple zones lend alot of strength to this area. Lets hope they can have a high completion rate with no trouble downhole. Take care all of you.

It seems like to me Cabot is being slow and cautious for good reason.

Thanks Lessor and everyone else!!!
They should have known production as late as Jan-Feb. Interesting they are talking about #4 and not number three. I think it is huge, but just call me......Cheerleader!!

Crimson Exploration Inc. Monday, February 23, 2009

Crimson Exploration announced results of production and drilling activity for the fourth quarter of 2008 and year-end 2008 reserves.

Haynesville Acreage Acquisition

As previously announced, we acquired during the third and fourth quarters of 2008 approximately 13,000 net undeveloped acres in Sabine, Shelby and San Augustine counties, Texas on which we will target the Haynesville Shale, James Lime, and Travis Peak formations. We are currently developing a drilling strategy for this acreage, including unit and well spacing, with the expectation that we will commence our first vertical test during the second quarter of 2009. We will continue to acquire additional acreage that complements our existing position for the remainder of the year, and expect to have an active drilling program in this area by early 2010

Notice how the Horizontal wells run north-south? Why is that?

Intrepid, I was told all of the reservoirs seem to have a common SW to NE lay but no explanation as to why.

Certainly quiet on the leasing side in San Augustine County but there has been 10 drilling permits submitted since Jan. 1 2009. That's encouraging.

Sandstone, Thanks. You're right, there is probably a geological explaination. Maybe someone has more info?

I like the idea of that gas being pulled by gravity down from Panola through our counties to the Gulf Coast, don't you? LOL

Just in case no one has posted this yet this:-)

Southwestern Energy Announces 2008 Financial and Operating Results

February 26, 2009: 04:30 PM ET
East Texas - In the second quarter of 2008, Southwestern signed a 50/50 joint venture agreement with a private company to drill two wells targeting the Haynesville/Bossier Shale intervals in Shelby and San Augustine Counties, Texas. The first horizontal well, the Red River 877 #1 located in Shelby County, reached total depth in the fourth quarter of 2008 and was completed in the first quarter of 2009. It is currently being tested. The second horizontal well, the Red River 164 #1, is drilling and it is expected to be completed and tested in the second quarter of 2009. The company may invest more capital in the Haynesville/Bossier Shale play than previously planned.

jffree, good find. I missed that. I think COMMON RESOURCES L.L.C. is the private company in the joint venture. Roger Jarvis runs this company.

Here is a link to the website:

http://common-resources.com/maps.html

COMMON RESOURCES has permitted 5 recent wells, 4 in the same area & one 12 miles SE near Etoile, all at 14000 or 15000 feet.

Is there any chance Haynesville/Bossier Shale is that far SE ?

In Shale News and Well Reports and Geology of the Shale....Les B posted this link to a Encana presentation. Good map of the play. Check out page 8.

http://www.encana.com/investors/presentationsevents/pdfs/p007002.pdf

DR, Thanks for the link re: Common Resources. Good maps. Did you note the difference in how the shale (unconventional trends) appears on their map as opposed to say CHK map (it looks more like a question mark than the usual oval laying NE to SW)? Do they know something the others don't or does that just indicate where leasehold is located? Of course, no matter who's map you look at, the shale is depicted differently, to some extent.

Well, now that I've looked at the Encana map (good one too, JWC), it too has the extension down into the SW, into what looks like western SA Co.
I wonder how much it will change as the play matures. Substantially, I imagine.

one 12 miles SE near Etoile, all at 14000 or 15000 feet

I should have said SW near Etoile, also it is the only one permitted only vertical.

Interesting map:

http://www.bossierville.com/

Good map DR. Thanks. Lot more coming out now on the regions of the play.

For the operators who may not be proficient in drilling hz. and/or shale, a vertical gives them well data and some production, albeit smaller than a hz. would. The data can be shared (or sold) to anyone interested in the area and also may be used to try to entice JV interest.
They also may be just looking at trying to HBP acreage, where they might come back at a later date (after acreage is held and, maybe, after market prices improve) to do the lateral if there is a good show (of gas). Several reasons for drilling a vertical Haynesville Shale well, I've been told.
That is one good reason to be particular about who you lease to. If the operator doesn't have hz. or shale experience/expertise and is not JV'd with someone who does, you stand the chance of being HBP'd forever and ever, amen, by a vertical well that may not be a great producer. HBP only has to have production "in paying quatities" and doesn't have to be a "MONSTER" well to hold your land.

On another note:
There is currently at least one "coalition" (participants a secret, of course) of O&Gs who are sharing well data to further the learning curve as well as to define the boundaries of the Haynesville, which is great. But I think at some future date you will hear that the Bossier Shale (above the Haynesville) will be much better over here than the Haynesville is. There are several formations which may be productive in E. Tx..

Cabot increased their acreage around their County Line project in the last few months. Cabot has now drawn the area for the Haynesville/Bossier shale much further south into San Augustine and Sabine county. Similar to how Encana and Common Resources are mapping this play. It also seems that the County Line project is gaining emphasis.

Page 10-11
http://www.cabotog.com/pdf/Howard_Weil_2009.pdf

Good map DR. Thanks for posting. Bring'em on down..

From OilVoice on the Web:
Chesapeake Energy and others are very busy in the Haynesville Shale now. From Desota Parish,La to the southwestern part of the play into southern part of Shelby County, Texas.The deeper part of the play in San Augustine County ,Texas has seen several operators test the Haynesville ,but have not released any production numbers yet. Several companies are planning Haynesville Shale wells in Sabine,County Texas. Chesapeake,Devon,etc. have leases in Sabine County, Texas. The better wells should be at these deeper depths in this play.

Crimson had their conference call today. The CEO said that several significant wells have been drilled by some operators and that well result info will be made public soon. Overall very positive comments about this area. They plan to drill one or more wells starting in the 3Q. They are looking to bring in a JV partner. Crimson has 13,000 net acres. Cabot announced that they are looking for a JV as well for their >60,000 net acres. This area and well results must be good for them to think they can bring in JV partners to put up drilling $$$ at this time.

Thanks DR. Any word on any more leasing in this area?

JWC, Cabot had some ~30k net acres back in Oct/Nov if (I remember correctly) at County Line. Now they say they have over 60K. Looks like they have been busy building their acreage. Crimson says that will continue to lease in 2009 to complement their existing lease position.

Sounds good. Thanks DR.

Any talk about Cabot parterning up with BP on the HS wells?

Another comment from OilVoice....hope they know what they are talking about.

The wells that have been drilled , drilling and permitted indicate a more of a Northeast to Southwest direction into Texas. This sets up Shelby,Sabine and San Augustine counties to be very active in this play.More likely it will be Devon or XTO to step out and prove up this deeper part of this play.

This is all great news. Anyone with some inside knowledge of this.....please feel free to share your insights.

From St. Mary Land & Expl.'s press release, today:

St. Mary has 10,000 net acres with potential for the Haynesville Shale in Louisiana, 4,200 of which are located in the Spider Field. The remaining 40,000 net acres of the Company’s total 50,000 net acres are located in East Texas. St. Mary’s second Haynesville well has commenced drilling in northern San Augustine County, Texas. After coring the Haynesville section, this well will be drilled down to the deeper Cotton Valley Lime formation for evaluation purposes. St. Mary currently expects to complete the well as a vertical Haynesville test.

Thanks DR. This well must be on the Quirk, T survey that is located 4 miles north of San Augustine.

DR, do you know where St. Mary's first Haynesville well was and the results of it?

Sandstone, Their first was on the Louisiana side in Desoto I think. They released results of 4.1 million cubic feet per day but said they thought that something went wrong in the drilling process and somethig was broken off. The second is in Quirk in San Augustine and they are already aquiring land for pipeline to this well according to landman. Good sign I think.

All of their presentations have this well as a vertical test yet the well in the Quirk grant was permitted as a horizontal. I am assuming this is either a good sign or a path to a quicker return of investment for st mary. Thoughts?

I think this is a way for them to hold down expenses drilling the well. Permitted this way, they can drill and test the vertical zones before they go horizonal without getting a new permit. If they had permitted it vertical they would have to get it repermitted to go horizonial. Horizonal permitting allows either vertical or horizonal.

If the vertical tests aren't good they won't bother going horizonal. That is the news we DON'T want to hear! LOL

I agree with you on that. Hopefully it is a good sign that they are aquiring land for pipelines already to get the gas out.

It will be more encouraging if they are acquiring land for trunk lines, gathering system, for multiple wells!!

St Mary, along with many others these days seems to be in capital preservation mode.

I thought this was kinda interesting...

St. Mary Land & Exploration Company Monday, April 06, 2009

Excerpt:

St. Mary has 10,000 net acres with potential for the Haynesville Shale in Louisiana, 4,200 of which are located in the Spider Field. The remaining 40,000 net acres of the Company's total 50,000 net acres are located in East Texas. St. Mary's second Haynesville well has commenced drilling in northern San Augustine County, Texas. After coring the Haynesville section, this well will be drilled down to the deeper Cotton Valley Lime formation for evaluation purposes. St. Mary currently expects to complete the well as a vertical Haynesville test.

Here's the link if you want to read the whole thing.

http://www.rigzone.com/news/article.asp?a_id=74805&rss=true

Their first HA well was in central DeSoto Parish, Spider Field.

Well, I didn't take the time to scroll down, I got so excited, LOL. DR beat me to it.

I also thought it exciting that they were going to evaluate the CV Lime after coring the haynesville section. The geology must be promising (at least I hope it is). I hope it not unlike Southern Shelby County where Devon had huge wells in the CV LIme. Also was wondering if anyone heard anything about the Haynesville well Cabot drilled in/near the Kimbro survey?

I think that is the K. Von Goetz # 3 and they haven't released a word yet! They commented on it in there 4th Qtr. report and said they were "Pleased with it" but declined to comment further. They did say they were going to take it Horz. though.

Cabot will have their 1st Q '09 conference call on April 29th. Maybe they will give some color on the Von Goetz #3 well. They are shopping the property for a JV partner, so info will come out soon in my opinion.

How/where did you hear they were shopping, DR?

By shopping I mean that they are looking to bring in a JV partner. Cabot managment talked about bringing in a JV partner at the Howard Weil conference. This is a positive, in my opinion. You can find a copy of the presentation on Cabot's website.

Thanks, DR. I think that's pretty positive, also. I knew you meant looking for a JV partner. Do you suppose they are looking for someone with more shale experience? That is what I would suppose... They seem to have mastered the James Lime.
To change the subject, did you guys see the results on Southwestern's Timberstar-Tuppen #2H? 5.68 MMcfd, I think. Another good James Lime well.

And did anyone ever see anything reported on Cowboy's GU #1 in J.J. Hennis Survey? That well was drilling back in Oct./Nov. and I haven't heard a word about it.