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

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Replies to This Discussion

He was 24 the other day! Happy Birthday ole boy! Wish I wouldna' known , I would have jumped outta the cake for ya ! HA!HA! You know how much I like cake.
Alright so maybe I missed it by 14 years. It still would have been worth seeing Snake jump out of that cake.
Hello Mrs. Ann W , Thanks but I am not an American Indian nor do I wish them any harm. You should be ashamed of yourself after all they have been through.

You can succinct if you want to but that sounds kinda vulgar to me.

Dr. Phil is a little too emotional for me. I like 'em a little more thick skinned and big boned myself but you are more then welcome to Google whoever you want to.

Tell me how that succinct thing turns out for ya tho . Me and the Mrs. do have an anniversary coming up and I like to keep the ole fires a bernin if you know what I mean. 15 years and still going strong.

For some reason , you online gals are the only ones that dont see through this outer shell to the inner sexy me !
I really respect everybody on this post. I consider you all friends. I'm asking please let this McConnell thing die. No pointing fingers we all have our opion. I have friends on both sides of this issue and it's just killing me to keep reading this stuff.
Not going to feed your wolf anymore Parker. Call Jay and ask him since I dont have any idea whats going on. By the way........It makes you look crazy when you keep replying to yourself.Maybe you should think about buying a T.V. I know I am HA!HA!
Second half just started, got to go. Have a good one.
BTW..... I haven't ever said anything negative about you before have I Parker ? Before the butt sniffer comment anyway.hahahaha
Peace and Love...Shale for everyone!!!
Talk about methane smellers check out my new logo.
this is funny!!!!!!! haven't the O & G people gotten what they want by having us argue with each other. It sounds like a bunch of women in an office.
I'v heard abunch women in a office. It's not that bad.
That was a joke ladies!
I'm sick of all the crap. I'm off all sites. Don't call me, either. I'm done. This is ridiculous behavior that I would not tolerate from my own family much less people who SHOULD be friends. If you consider me your friend, I probably still am but I will not watch this destructive behavior any longer. You should all be ashamed of yourselves.
If I can't call you , can I still post on your comment wall ?

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