East Texas - Southwestern participated in drilling 11 wells in East Texas during the first three months of 2009, 9 of which were James Lime horizontal wells. Production from the company's East Texas properties was 7.8 Bcfe for the first three months of 2009, compared to 8.1 Bcfe for the first three months of 2008.
At March 31, 2009, Southwestern held approximately 105,700 gross acres in its Angelina River Trend area, which consists of several separate development areas located primarily in four different counties in East Texas where the company is targeting the Pettet, Travis Peak, James Lime and Haynesville formations. During the past year, the company has primarily focused its drilling activity in this area on the James Lime formation where it has 21 operated wells on production which had average gross initial production rates of 8.8 MMcf per day. Southwestern's current net production from the James Lime is approximately 30 MMcf per day, including production from 16 outside-operated wells.
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, was production tested at 7.2 MMcfe per day in the first quarter of 2009 and is currently producing approximately 3.0 MMcf per day. The second horizontal well, the Red River 164 #1, has reached total depth and it is expected to be completed and tested in the second quarter of 2009. Pending further results from these wells, the company may invest more capital in the Haynesville/Bossier Shale play than previously planned.
Intrepid & ALongview, From what I have read, Cabot is optimistic about both the HA shale and the HA lime. They are cautious though. Probably won't say much until they have the goods. If I tried to predict when they will say something about KVG#3, I might be clairvoyant! Getting the latest well info in Texas is like trying to catch minnows with a butterfly net.
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.
I am going to back peddle some now. I said they (Cabot) were going to drill a lateral on KVG#3. That is probably wrong. They have said they are going to drill a horizontal in the shale at County line. They also said they were encouraged by what they saw with KVG#3. I made an assumption that they would take that well horizontal.
However, if you go back to the permits... KVG#3 is between the laterals of #1H and #2H and (someone correct me if I get this wrong) #3 was permitted vertical only because of it's proximity to the other wells. It has been pointed out to me that there is no room to drill a lateral on #3. I'm not an expert so I can't comment on that.
So, look for another Cabot well to go horizontal in the shale... and who knows what they will say or do about KVG#3? I don't.
From today's St. Mary press release:
In the Haynesville shale program, the Company is currently drilling its second well targeting the Haynesville shale formation. The well is located in northern San Augustine County, Texas. After coring the James lime and Haynesville shale sections, this well will be drilled to the deeper Haynesville/Cotton Valley lime formation for evaluation purposes. St. Mary currently expects to complete the well as a vertical Haynesville shale test. One additional well targeting the Haynesville shale is planned for later in 2009.
Devon Energy Corporation Q1 2009 Earnings Call Transcript
Page 5 out of 10|May 06, 2009 Seeking Alpha
Dave Hager, Executive Vice President of Exploration and Production
We also have a very good acreage position in the southern part of the play, which lies south where most wells have been drilled to-date. We have 47,000 net acres in Sabine Parish, Louisiana and the contiguous counties of Sabine, San Augustine, and Nacogdoches in Texas. While Devon has not yet drilled in this part of the play, the technical data indicates this could be a very perspective area.
For them to drill and hold all of this it would take 73 or so units of 640 acres. I think they can do 73 wells in the next 2-4 yrs with renewals. It sounds as if they own or HBP most of the rest of it? That is encouraging don't you think?
They said that they own most of the minerals under their La. acreage and that a large portion of E. Tx. (Carthage) is HBP. So they don't have as much acreage as some other operators to worry about leases expiring on.
That would make me very happy and I would also think that at 2200 wells per year and probably 4 years on most leases with renewals. I think they could eke out 73 wells out of the next 8800 to hold these 47000 acres.
"While Devon has not yet drilled in this part of the play, the technical data indicates this could be a very perspective area. " Sure hope so. They have leased close to us jffree1. Hopefully the will drill soon.
I thought this was very interesting as well from Devon's conference call. Especially the slower depletion rate comments.
To-date, we have drilled five Haynesville Shale horizontal wells, all in our Carthage area of East Texas. As we previously reported, the first two wells suffered casing failures, but we solved those problems in the next three wells which we completed during the first quarter.
These three wells had average IPs of about 5 million a day. We brought these wells on very cautiously, choking them back to avoid the casing problems we encountered in the first two wells. While we're not implying these wells could have the IPs that the rates encountered in the Louisiana sweet spot we believe these lower IPs are conservative.
In addition based upon early production data, we believe these wells have shower decline rates. Ultimate recoveries in the Carthage area are expected to range from 5 to 8 Bcf per well. It is in the early days in the evaluation of the play and we expect our results to improve as we gain additional experience as they did in the Barnett and Woodford.
New from the East Texas Drilling report.
San Augustine County
KT Operating completed the Long-Bell Oil Unit Well No. 1ST and the Long-Bell Oil Unit No. 3 Well No. 3ST in the Brookeland Field. The No. 1ST hit 14,585 feet 6.6 miles southwest of Brookeland and flowed with 13 barrels of crude on an open choke. The No. 3ST hit 13,565 feet 6.5 miles southwest of Brookeland and flowed with 13 barrels of crude on an open choke in the Austin Chalk, 8800 formation.
Cabot Oil & Gas completed the Jacquelyn Bright Gas Unit Well No. 1-H to 12,473 feet 5.8 miles northwest of San Augustine Field in the Angie Field. On a 64/64-inch choke the well potentialed 6.459 million cubic feet of gas in the James Lime.
5 miles west of SA north of 21. Take county road 219 to 220 then 202 goes from 220 and circles back around to FM 711. the KVG 1,2 and 3 wells are on that road also jacklyn bright 1,2 and 3 ,oglesbee 1 and 2 and 3 or 4 more I know there is about 10 wells in a mile circle. also Saint Mary has 2 wells on the end near FM 711 and another one on CR 217 by the San Augustine Airport.
We rode around up in Fountain Town and Camp Worth arear other day and counted 19 wells in just a few moments driving.
Sone new sites up there not yet drilled already has Right of way cleared to the well site for pipeline
Thanks. I'll have to go make that drive. I have been out CR 1015 from 96(Shelby) and back to 711. A lot of wells out in that area, Cabot & SWestern. A few of the wells on that drive are older though and include some Hunt wells.
"already has Right of way cleared to the well site for pipeline "
Does the cleared right of way go N to the E end of SW Energy's gathering line ?
That would be the best news in a long time. That line has not been added to since March of 2008.
Southwestern Energy completed the Timberstar-Mills B Well No. 8H to 13,102 feet 4.9 miles southeast of Aiken in the Angie Field. On a 36/64-inch choke the well potentialed 4.496 million cubic feet of gas in the James Lime.
Southwestern Energy continues to tear them up in the James Lime. I saw a map outlining the James Lime but I can't remember where I saw it. Anyone recall?
3yrs of our 3yr 2yr option is up with Southwestern Energy with no contact. What can we expect next? They do not answer emails about mailing add change.
jiffee1, whats the kicker on that option (price)? I would let it expire, and then you would have other options. However, I feel like they would have hit you up already if they really wanted to tie it up.
Sorry, I meant to direct that comment to etx44. What I was trying to tell you was that I'd let it expire if at all possible (the kicker). If you signed a 3&2 in 2006, I'd guess that the kicker to renew was <$150, certainly <$200. I am confused as to how you believe its in your best interest to have your lease renewed for such low money, even in this terrible market. I would have hoped they somehow didn't find me or didn't renew so I could expose it to the open market. And you were trying to hunt SWN down! Even if you had to hold it 6-12 months from now unleased, this certainly would have far outstripped any kicker price you were locked into from 2006! Please correct me if the facts are wrong.
Carter your right, but they did do right by the deal we made on our lease and to me that makes them a good partner to have.
Besides our bonuses are better than those you stated and getting renewal payments and knowing Southwestern & or Common will have producing wells here by the end of the year makes us feel very lucky.
Southwestern & Common are drilling 100% great wells.
You do not have the option of "not being found" when it comes to a Lessee paying their option to renew. All they must do is "tender" payment to the last address of record (usually the address on the lease) before the expiration date, and the lease is extended. This is normally done via certified mail so they have proof it was sent. Even if the mail is returned unopened, the lease is properly extended. And in this area, a company like SWN would only let an option period pass if the lease was HBP's, or if they just simply missed it, which happens but is rare.
OGM, I understand that they have the right to renew the OGL by tendering payment prior to expiration. "Not being found" was my colloquial way of saying that he should not chase them down, and that hounding them to renew was actually not in his best interest. Many times I have seen leases extended without using certified mail. For example, Longbranch or Longtree, the company that was brokering for RosetMistakes happen all the time and that is not rare.
I hit send before I finished typing :-) I was just saying that I've seen some folks that just sent checks in the mail. Nobody is disputing their right to renew. Since last year at this time, I have always steered folks toward reason on this site. A check of my posts from Summer 2008, will show that I urged people to lease into strength and not be greedy, and I called the top to this little bubble almost exactly.
My concern with etx44, was his thinking that he needed to chase them down to make sure they renewed a lease that most definitely was not drafted in his best interest. I did a quick look at some 2006 SWN leases in SA, and saw some $225 kickers and 1/5 royalty. If he is one of those people then I suppose he's ok. Most likely no vertical Pugh on that 2006 lease and SWN also drills James Lime. Many Hunt 2006 leases down there were for 1/6 royalty. He needs to understand that if SWN extends a 2006 lease with a low royalty and he has no vertical Pugh, he has the possibility of getting HBP'd on a shallow well and then being tied to that same crappy lease forever. When times improve and they do go deep, he would lose plenty money with that low royalty. If one thinks about it from that perspective, they certainly would be hoping that SWN did not renew rather that chasing after them.
After looking at the old lease I am pretty sure he got $225 and 1/5, so even if he's tied up forever now, he's still probably got the 1/5.
And OGM, I really enjoy reading your expertise on the site. Thanks.
Hey folks!!!! They have been sesmic teams have been marking places down on 1277... We have one marker in our yard... It starts right off 96 and turns down 1277 ....
Southwestern Energy completed the Timberstar-Mills B Well No. 9H and the Timberstar-Mills Well No. 10H in the Angie Field. The No. 9H hit 12,951 feet 4.9 miles southeast of Aiken. No test data was recorded. The No. 10H hit 7,453 feet six miles north of Attoyac.
This well potentialed 3.392 million cubic feet of gas on a 34/64-inch choke. Production is in the James Lime.
Cabot Oil & Gas completed the Leila Wynn Unit Well No. 1 in the Angie Field to 13,799 feet 6.6 miles northwest of San Augustine. On a 30/64-inch choke the well potentialed 4.885 million cubic feet of gas. Production is in the James Lime.
Alongview,
Which abstract are your mineral rights in for which you received the seismic payment. [East of SA and N. of Hwy 21] Do you know for which OG the seismic readings were ordered?
Thanks
E. Quirk a-35. I think it was done for whoever will pay for the results not one specific o&g company. Pretty widespread across Northern SA County from what I heard.
I recently received payment from Seitel for 3D seismic survey of land on the South side of HW 21 in Denning. I was told that several companies were paying for the survey, including two I specifically asked about, Southwestern Energy and Cabot Oil and Gas.
Southwestern Energy completed the Timberstar-Tartt Well No. 4H to 12,723 feet 1.6 miles north of Attoyac in the Angie Field. On a 34/64-inch choke the well potentialed 4.339 million cubic feet of gas in the James Lime.
ALongview
Apr 30, 2009
Doug Fitzgerald
At March 31, 2009, Southwestern held approximately 105,700 gross acres in its Angelina River Trend area, which consists of several separate development areas located primarily in four different counties in East Texas where the company is targeting the Pettet, Travis Peak, James Lime and Haynesville formations. During the past year, the company has primarily focused its drilling activity in this area on the James Lime formation where it has 21 operated wells on production which had average gross initial production rates of 8.8 MMcf per day. Southwestern's current net production from the James Lime is approximately 30 MMcf per day, including production from 16 outside-operated wells.
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, was production tested at 7.2 MMcfe per day in the first quarter of 2009 and is currently producing approximately 3.0 MMcf per day. The second horizontal well, the Red River 164 #1, has reached total depth and it is expected to be completed and tested in the second quarter of 2009. Pending further results from these wells, the company may invest more capital in the Haynesville/Bossier Shale play than previously planned.
Apr 30, 2009
jffree1
Apr 30, 2009
jffree1
http://seekingalpha.com/article/120556-cabot-oil-amp-gas-q4-2008-earnings-call-transcript?page=5
Dan Dinges:
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.
May 2, 2009
jffree1
However, if you go back to the permits... KVG#3 is between the laterals of #1H and #2H and (someone correct me if I get this wrong) #3 was permitted vertical only because of it's proximity to the other wells. It has been pointed out to me that there is no room to drill a lateral on #3. I'm not an expert so I can't comment on that.
So, look for another Cabot well to go horizontal in the shale... and who knows what they will say or do about KVG#3? I don't.
May 2, 2009
intrepid
Well said, jffree1.
May 2, 2009
jffree1
May 2, 2009
DR
In the Haynesville shale program, the Company is currently drilling its second well targeting the Haynesville shale formation. The well is located in northern San Augustine County, Texas. After coring the James lime and Haynesville shale sections, this well will be drilled to the deeper Haynesville/Cotton Valley lime formation for evaluation purposes. St. Mary currently expects to complete the well as a vertical Haynesville shale test. One additional well targeting the Haynesville shale is planned for later in 2009.
May 4, 2009
intrepid
I was being funny but you got my point, LOL.
The truth is often said in jest. You were spot on. As usual.
May 4, 2009
jffree1
Page 5 out of 10|May 06, 2009 Seeking Alpha
Dave Hager, Executive Vice President of Exploration and Production
We also have a very good acreage position in the southern part of the play, which lies south where most wells have been drilled to-date. We have 47,000 net acres in Sabine Parish, Louisiana and the contiguous counties of Sabine, San Augustine, and Nacogdoches in Texas. While Devon has not yet drilled in this part of the play, the technical data indicates this could be a very perspective area.
May 6, 2009
ALongview
May 6, 2009
jffree1
May 6, 2009
jffree1
From page 4:
In the first quarter, we drilled 451 wells. (Of course, that was a total for all production.)
May 6, 2009
ALongview
May 6, 2009
JWC
May 7, 2009
ALongview
To-date, we have drilled five Haynesville Shale horizontal wells, all in our Carthage area of East Texas. As we previously reported, the first two wells suffered casing failures, but we solved those problems in the next three wells which we completed during the first quarter.
These three wells had average IPs of about 5 million a day. We brought these wells on very cautiously, choking them back to avoid the casing problems we encountered in the first two wells. While we're not implying these wells could have the IPs that the rates encountered in the Louisiana sweet spot we believe these lower IPs are conservative.
In addition based upon early production data, we believe these wells have shower decline rates. Ultimate recoveries in the Carthage area are expected to range from 5 to 8 Bcf per well. It is in the early days in the evaluation of the play and we expect our results to improve as we gain additional experience as they did in the Barnett and Woodford.
May 7, 2009
Doug Fitzgerald
San Augustine County
KT Operating completed the Long-Bell Oil Unit Well No. 1ST and the Long-Bell Oil Unit No. 3 Well No. 3ST in the Brookeland Field. The No. 1ST hit 14,585 feet 6.6 miles southwest of Brookeland and flowed with 13 barrels of crude on an open choke. The No. 3ST hit 13,565 feet 6.5 miles southwest of Brookeland and flowed with 13 barrels of crude on an open choke in the Austin Chalk, 8800 formation.
Cabot Oil & Gas completed the Jacquelyn Bright Gas Unit Well No. 1-H to 12,473 feet 5.8 miles northwest of San Augustine Field in the Angie Field. On a 64/64-inch choke the well potentialed 6.459 million cubic feet of gas in the James Lime.
May 9, 2009
intrepid
Sounds good to me.
May 10, 2009
Doug Fitzgerald
May 10, 2009
jffree1
May 12, 2009
Doug Fitzgerald
We rode around up in Fountain Town and Camp Worth arear other day and counted 19 wells in just a few moments driving.
Sone new sites up there not yet drilled already has Right of way cleared to the well site for pipeline
May 12, 2009
jffree1
May 13, 2009
etx44
Does the cleared right of way go N to the E end of SW Energy's gathering line ?
That would be the best news in a long time. That line has not been added to since March of 2008.
May 14, 2009
Mike
EnCana to hold conference call and webcast on Haynesville & Deep Bossier plays on Wednesday, May 27, 2009
May 22, 2009
jffree1
Jun 10, 2009
JWC
Jun 11, 2009
jffree1
Jun 14, 2009
JWC
Jun 14, 2009
ALongview
Jun 14, 2009
etx44
Jun 18, 2009
ALongview
Jun 18, 2009
Carter
Jun 19, 2009
etx44
Jun 20, 2009
ALongview
Jun 20, 2009
Carter
Jun 20, 2009
etx44
Besides our bonuses are better than those you stated and getting renewal payments and knowing Southwestern & or Common will have producing wells here by the end of the year makes us feel very lucky.
Southwestern & Common are drilling 100% great wells.
Jun 21, 2009
ogmladvisor
You do not have the option of "not being found" when it comes to a Lessee paying their option to renew. All they must do is "tender" payment to the last address of record (usually the address on the lease) before the expiration date, and the lease is extended. This is normally done via certified mail so they have proof it was sent. Even if the mail is returned unopened, the lease is properly extended. And in this area, a company like SWN would only let an option period pass if the lease was HBP's, or if they just simply missed it, which happens but is rare.
Thanks
ogmladvisor
Jun 21, 2009
Carter
Jun 21, 2009
Carter
My concern with etx44, was his thinking that he needed to chase them down to make sure they renewed a lease that most definitely was not drafted in his best interest. I did a quick look at some 2006 SWN leases in SA, and saw some $225 kickers and 1/5 royalty. If he is one of those people then I suppose he's ok. Most likely no vertical Pugh on that 2006 lease and SWN also drills James Lime. Many Hunt 2006 leases down there were for 1/6 royalty. He needs to understand that if SWN extends a 2006 lease with a low royalty and he has no vertical Pugh, he has the possibility of getting HBP'd on a shallow well and then being tied to that same crappy lease forever. When times improve and they do go deep, he would lose plenty money with that low royalty. If one thinks about it from that perspective, they certainly would be hoping that SWN did not renew rather that chasing after them.
After looking at the old lease I am pretty sure he got $225 and 1/5, so even if he's tied up forever now, he's still probably got the 1/5.
And OGM, I really enjoy reading your expertise on the site. Thanks.
Jun 21, 2009
Shelley
Jun 22, 2009
ALongview
Jun 22, 2009
jffree1
Southwestern Energy completed the Timberstar-Mills B Well No. 9H and the Timberstar-Mills Well No. 10H in the Angie Field. The No. 9H hit 12,951 feet 4.9 miles southeast of Aiken. No test data was recorded. The No. 10H hit 7,453 feet six miles north of Attoyac.
This well potentialed 3.392 million cubic feet of gas on a 34/64-inch choke. Production is in the James Lime.
Cabot Oil & Gas completed the Leila Wynn Unit Well No. 1 in the Angie Field to 13,799 feet 6.6 miles northwest of San Augustine. On a 30/64-inch choke the well potentialed 4.885 million cubic feet of gas. Production is in the James Lime.
Jul 5, 2009
Cheerleader
Which abstract are your mineral rights in for which you received the seismic payment. [East of SA and N. of Hwy 21] Do you know for which OG the seismic readings were ordered?
Thanks
Jul 9, 2009
ALongview
Jul 9, 2009
ALongview
Jul 9, 2009
James L. Williams
Jul 10, 2009
intrepid
Jul 15, 2009
JWC
Jul 18, 2009
James L. Williams
Jul 18, 2009
jffree1
Southwestern Energy completed the Timberstar-Tartt Well No. 4H to 12,723 feet 1.6 miles north of Attoyac in the Angie Field. On a 34/64-inch choke the well potentialed 4.339 million cubic feet of gas in the James Lime.
Jul 19, 2009