Huge news from Devon this morning as they have released the IP results of their Kardell Gas Unit 1H well in San Augustine, TX and it came in at a whopping 30.7mmfcd:
Nov. 2 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today announced the results of a successful Haynesville Shale well in San Augustine County, Texas. The Kardell Gas Unit 1H achieved an average continuous 24-hour flow rate of approximately 30.7 million cubic feet of natural gas equivalent per day through a 37/64-inch choke. Flowing pressure was 6,824 pounds per square inch.
Jffree, that depends on the operator. Some wells may be produced initially at the reported IP before decline while others will be "choked back" immediately and produced at a lower rate. Also, not all wells have a 4-point test.
Finally, frac'ed shale wells can behave differently than conventional wells. For example, a well can continue to "clean up" after the initial test and the rate and pressure could actually increase.
It's been said that opening the choke too much to start with can shift the proppant around and reduce the ultimate productivity of the well.
Since the production declines so rapidly, it probably makes a lot of sense to start the well choked down from the start. Production will rapidly decline to the choked down rate anyway and you could probably open the choke after the flow rate declines and get the same amount of gas in the first year any way without hurting the ultimate production.
There's probably some value in keeping the maximum flow rate "secret" by never opening the choke to keep information away from your competitors, or from nearby unleased mineral interests.
Getting a higher flow rate is good for bragging rights or inducing people to invest in your company, but it probably isn't the best thing long term for the mineral interests or the company. There's also the idea of keeping the flow rate low until gas prices go up.
Devon says choke size was driven by trying to unload water (frac fluid) during well clean-up but no problem as they were closely monitoring the flowing casing pressure. Well has been temporarily shut-in awaiting installation of treating unit (CO2 removal).
Actually I had the same idea. Texas is the pick-up capital.
Or own the local cafe. Lots of oil field workers will want lunch. Or a drink after hours.
This part of the state will enjoy an incredible BOOM!
Remember, the Obama stimulus plan for the entire NATION was only $800 million. And we have ONE COMPANY spending $1 billion in an area where the largest town is 10,000.
Incredible. Just Incredible.
But glad I am part of it. This is the first shaft of the Comstock Lode. Wealth will follow.
WW,
The simulus plans were about 800 billion dollars EACH. But if DVN presses ahead even remotely close to the scenario you suggest, this will definitely be an economic boost to Northeast Texas. Let's hope that trend continues.
Many excellent comments made here in connection with the DVN Kardell # 1. That well has to attract a lot of well deserved attention---30 mmcfd is a winner!