Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 17, 2010 at 14:01

One of the HS players (don't recall which off the top of my head) that filed for alternate unit wells at year end did so for an additional seven! How about fracing an entire section at one time. Now that would really be interesting.

Permalink Reply by Les Bamburg on January 17, 2010 at 16:29

Skip, several operators have utilized the practice of simultaneously frac'ing adjacent horizontal wells in the Barnett Shale to maximize formation penetration but not sure if we will see the same practice followed for the Haynesville Shale due to the differences in the two shale plays

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Permalink Reply by Les Bamburg on January 17, 2010 at 16:25

JNP, the Barnett Shale development doesn't really provide much insight for the Haynesville Shale due to the differences in unit shapes, formation depths and well spacing patterns.

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Permalink Reply by Les Bamburg on January 17, 2010 at 16:21

Rachel, it will probably be another 2-3 years before we get a real indication of the timing for how operators intend to drill additional wells in each unit as most companies are focused on just trying to get all their acreage held by production. Also, different operators will have different approaches and timing for developing their units.

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Permalink Reply by JeffNParis on January 17, 2010 at 18:27

I wonder if anyone on this blog has done the math to try to guesstimate the number of potential unitized sections in the Haynesville which would indicate how many wells have to be drilled to HBP. Then, I suppose if the rig count were known or estimated, one could guesstimate how quickly the first unit wells might be drilled (given market conditions and many other variables I'm sure). Am I shooting in the dark here?

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Permalink Reply by Les Bamburg on January 18, 2010 at 4:50

JNP, the combined Haynesville & Bossier Shale plays cover ~ 2.1 million acres in northwest Louisiana which would require 3280 Haynesville Units. To date, 1876 Haynesville Units (~ 1.2 million acres) have been formed. Haynesville Shale wells have been permitted or drilled in 793 of the Haynesville Units leaving 1183 units undrilled. The current HS rig count is about 120 and could drill ~ 900 wells per year. This means the 1183 undeveloped Haynesville Units could be drilled in about 1.3 years. The "un-unitized" portion of the two shale plays (~ 0.9 million acres) would require 1400 wells and would take around 1.6 years to drill. So the total time is about 3 years at the current rig count and not taking into account any acreage already held by shallower production.

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Permalink Reply by JeffNParis on January 18, 2010 at 8:14

Les B,
Thanks! And hats off to you for doing your math homework!
'Twill be interesting to watch them develop it.
Thanks for the numbers. It's all very interesting.
JnP

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Permalink Reply by Henry on January 18, 2010 at 4:51

JeffNParis,
Chesapeake has a good chart in its investor presentation of Jan 4. Go to the 12th chart, and you can see how many acres/sections they plan to drill each year. I've seen this chart twice, and the amount of HBP sections rose from the first version to the second. I suspect they will use this chart regularly, so we can watch their progress in HBP'ing acreage.

As of today, they claim to have HBP'd 110,000 out of 510,000 net acres. They have leasehold in in 1800 sections and control operations in 600 of them. By year-end 2011, they plan to HBP 330,000 acres (500 sections) in the Chesapeake-controlled sections. By year-end 2012, they plan to HBP 430,000 acres in Chesapeake-controlled sections.

This gives you a partial answer to your question.

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Permalink Reply by Linda Blunt on January 18, 2010 at 7:58

Henry,
What page is that on?

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Permalink Reply by Henry on January 18, 2010 at 12:10

Linda,
I think it's page 12. It is a chart with some yellow, blue, and green colors on the map.

Permalink Reply by JeffNParis on January 18, 2010 at 8:15

Thanks Henry. That helps as well!

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Permalink Reply by Linda Blunt on January 18, 2010 at 16:09

Henry,
Thank you very much! It has a map....I was looking for a chart only!
Thanks again:)

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