Good read
Expert: James H. McConnell, CPL
Date: 8/2/2008
Subject: Haynesville Shale play in DeSoto Parish,LA
Question
Mr. McConnell, a couple of years ago, our family leased our property in Desoto Parish,LA (Section 13, T14N-R13W) to Winchester Production (now EXCO Resources). The leases and bonuses were fair for the time and wells are producing nicely (we like the "mailbox money"). I realize we are already locked in on the lease we have as it is held by production, but I'm wondering what the Haynesville shale will do for production. In your opinion, will it affect production at all? Can vertical wells be re-completed as horizontal wells? Is this feasible for a company to do so? How does EXCO shape up with the big companies like Cheasapeake? Also, the horizontal wells seem to be very expensive to drill but the possible production seems to be worth it, but their depths are about 10,000 to 11,000 ft. much the same as the vertical wells there already. How much more production can be accomplished from a horizontal? Is the increased production from the increased surface area from the lateral? By the way,not too far from our property there is land owned by someone with your last name. Any relations? Thanks for your help responding to my rambling post, Cannie
Answer
You have read a lot of information, but you don't really get the overall picture yet. The Haynesville shale in 14n-13W is probably 11000-12000 feet. When they drill a horizontal well they add a lateral of about 4000-6000 feet, making total depth around 15,000 to 17,000 feet.
The wells cost about $6.5mm to drill and complete and they should average 6-6.5 BCF per well. The completions from the horizontal wells are from 6.5mmcfd to 18.5mmcfd. At $10.00 per mcf that's $60-65mm revenue per well or close to $600mm per unit. Yeah, it will affect the production in the unit. If you like those Cotton Valley wells, you will love the Haynesville wells.
The Haynesville Shale has porosity but no permeability, so a vertical well will do very little after initial completion. They are drilling vertical wells to test the rock, because this is a whole new ball game and they are learning while drilling. Once they have the data they need to understand the reservoir rock under their lease block and can plan the multi stage frac jobs accordingly, they will commence their drilling program in earnest. As of now, they are looking at 8 wells per unit or 80 acre spacing. This can change over time and experience. As far as reentering a vertical wellbore and drilling a horizontal leg, they will do that. They will drill several laterals at one time from the same pad and frac them at the same time to consolidate costs.
For the first time in my career, this business has thirty to forty years of work laid out for itself in developing these shale plays. They will run these things with real efficiency.
McConnell is the 26th most common name in America. I have family in Shreveport and Red River Parish.
Buck
Date: 8/2/2008
Subject: Haynesville Shale play in DeSoto Parish,LA
Question
Mr. McConnell, a couple of years ago, our family leased our property in Desoto Parish,LA (Section 13, T14N-R13W) to Winchester Production (now EXCO Resources). The leases and bonuses were fair for the time and wells are producing nicely (we like the "mailbox money"). I realize we are already locked in on the lease we have as it is held by production, but I'm wondering what the Haynesville shale will do for production. In your opinion, will it affect production at all? Can vertical wells be re-completed as horizontal wells? Is this feasible for a company to do so? How does EXCO shape up with the big companies like Cheasapeake? Also, the horizontal wells seem to be very expensive to drill but the possible production seems to be worth it, but their depths are about 10,000 to 11,000 ft. much the same as the vertical wells there already. How much more production can be accomplished from a horizontal? Is the increased production from the increased surface area from the lateral? By the way,not too far from our property there is land owned by someone with your last name. Any relations? Thanks for your help responding to my rambling post, Cannie
Answer
You have read a lot of information, but you don't really get the overall picture yet. The Haynesville shale in 14n-13W is probably 11000-12000 feet. When they drill a horizontal well they add a lateral of about 4000-6000 feet, making total depth around 15,000 to 17,000 feet.
The wells cost about $6.5mm to drill and complete and they should average 6-6.5 BCF per well. The completions from the horizontal wells are from 6.5mmcfd to 18.5mmcfd. At $10.00 per mcf that's $60-65mm revenue per well or close to $600mm per unit. Yeah, it will affect the production in the unit. If you like those Cotton Valley wells, you will love the Haynesville wells.
The Haynesville Shale has porosity but no permeability, so a vertical well will do very little after initial completion. They are drilling vertical wells to test the rock, because this is a whole new ball game and they are learning while drilling. Once they have the data they need to understand the reservoir rock under their lease block and can plan the multi stage frac jobs accordingly, they will commence their drilling program in earnest. As of now, they are looking at 8 wells per unit or 80 acre spacing. This can change over time and experience. As far as reentering a vertical wellbore and drilling a horizontal leg, they will do that. They will drill several laterals at one time from the same pad and frac them at the same time to consolidate costs.
For the first time in my career, this business has thirty to forty years of work laid out for itself in developing these shale plays. They will run these things with real efficiency.
McConnell is the 26th most common name in America. I have family in Shreveport and Red River Parish.
Buck
Views: 227
Replies to This Discussion
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Permalink Reply by BirdDawg, plain ole' idiot on
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Mr. McConnell gave a very good answer in my opinion. And this is only MY opinion. Of course, everyone is welcome to disagree!
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Permalink Reply by Bobi Carr ("parker") on -
I have read Mr. McConnell's answers for a year or two. I even posted a question and got a very quick and professional answer. All for the cost of $-0-.
I had an appointment to see an attorney, and my attorney gave me the same information.
The most important difference for me was some peaceful nights of sleep after I received my answer from Mr. McConnell.
I was a fan before he answered my question and I am a fan now. I sincerely respect his opinion.
But even he is a person, just like you and me who is entitled to opinions.
None of us like when someone disagrees with us. It is even harder to take when the person who disagrees with us knows what they are talking about.
We are all just human beings with opinions and with feelings. We can all say what we want but most of us don't like it when someone disagrees with us. It sometimes hurts our feelings.
I know that I have hurt others feelings with my opinions, it has not been done so intentionally.
ONE OF THE THINGS THAT I HAVE ENJOYED ABOUT THIS FORUM, IS THAT WE CAN DISAGREE AND HEAR OTHERS OPINIONS. AND FOR THE MOST PART WE UNDERSTAND THAT IT IS NOT PERSONAL.
I THINK OF IT AS NEIGHBORS VISITING OVER THE BACK FENCE.
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Permalink Reply by Big Daddy, bcnr on
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It was a good answer wasn't it? I asked Mr McConnell that question on "Ask the Experts" about the time I found this site. I too respect his answers and opinions. He is straight forward and no nonsense. Not exactly sure why he left this site, but I which he would come back. I learned a lot from him and his posts. I'm sure others did too.
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Permalink Reply by getoverit on
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He didn't leave...just changed "personas". Maybe some people didn't care for his condescending attitude.
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Permalink Reply by Iris on
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Yes, I was glad when he came back...I respected his answers & did'nt notice his "attitude". Take what you need & leave the rest.
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Permalink Reply by Iris on
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Well stated, Rosebud, I may have to copy that last paragraph & plagarize it elsewhere.
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Permalink Reply by Bobi Carr ("parker") on
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I encourage all of you to pray for Mr. McConnell and Mooncookie as well as all of the residents that are affected by Ike.
I know that I am.
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Permalink Reply by Snake Stewart on
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As much as I am not a MAC fan I certainly wouldn't want them in harms way. My prayers are with everyone at the mercy of this storm.
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To everyone that thinks Mr Mcconnell is a swell upstanding guy , please send him your info at CPLJIM@ 20 oaks so he can buy your minerals outright. That is what he does and I think it be only fitting to give back to this man some of what he has given to you.You can spend more quality time with CPL Jim if need be at his websight, www.gohaynesvilleshalefacts.ning.com
I hope this didn't sound belittling. I was shooting for sarcastic!
Jacking with Jay the Geo (who has been here from the begining and a host of others) was the undoing of CPL Jim.Some even try to credit me with chasing him off. HA!HA!HA! I am sure Mr. Mac will get a big kick out of that one.
Just to let you know how hard it is to teach an old dog new tricks tho, his new persona is after Jay again. I guess this crowd doesn't have a problem with that either, again ! Good luck with Mr. Mc and your minerals! HA!HA!
P.S. Some of the people that don't like me are big MAC fans ! It makes me feel much better knowing that you are real bad judges of character. HA!HA!
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