Replies to This Discussion

Permalink Reply by Lorea Cobb on June 8, 2010 at 6:14

Les:
I am glad that somebody is finally biting the bullet and testing the waters on the east side of Hwy. 4. Just out of curiosity, how long does it take for an operator to decide on a site? What are the most important factors in picking out the site? Then, once they have decided on the exact site, how long to: 1. Build the road to the site (if necessary), 2. Build the pad, 3. Start drilling, and 4. Drill to their chosen depth. I am talking in general terms, nothing specific. Thanks.

Permalink Reply by Les Bamburg on June 8, 2010 at 8:00

Lorea, I am not sure all the factors in chosing a drill site but operators do seem to favor corners of sections so they can reach adjacent sections. I should mention Questar had previously permitted a well at this surface location that will be drilled into Section 1. Also, this particualr location is in close proximity to LA Hwy 4 so the road should be short.

There has been wide variation in the Haynesville Shale play for the timing of each of the items you listed. Some wells seem to be drilled quickly after permit while in other cases the well permits expire after 6 months with no well drilled.

Questar, Kennedy 1 #H1 Well, Serial #241438, S6(1)-T15N-R8(9)W

Note the attached map does not accurately depict the path of the well laterals.

Attachments:

• S6-T15N-R8W.pdf, 419 KB

Permalink Reply by Lorea Cobb on June 8, 2010 at 8:25

Les:
Thanks for the map. I was not aware that they could drill into another section laterally like that. That is a first for me. Anyway, in general, if there are no complications, would you say that the time frame from picking a site to drilling is about 60 days or so? Thanks.

Permalink Reply by Les Bamburg on June 8, 2010 at 8:35

Lorea, maybe 60 - 90 days from well permit to initial well spud date should be a reasonable expection.

The horizontal lateral for the Kennedy #H1 Well will be located within Section 1 and will only produce from that section (unit).

Permalink Reply by Lorea Cobb on June 8, 2010 at 8:50

Thanks Les. Our lease expires in about 30 days. I just wondered if they would try to come in at the last minute. I really appreciate all of your help. This site has been a fountain of information.

Permalink Reply by Missy on June 10, 2010 at 17:43

Lorea,
In my case, they decided on the site, we signed agreements. When the paperwork finally went to the head office they decided that the landman left/took out something they wanted really bad so they wanted to redo the thing. After more time and money for counsel (which I wouldn't do without) an agreement was reached. I was still happy! Many months past before they started on the road and pad. When they start that it only a few weeks to build the location. The thing to remember is to be very patient. It is like show business, Hurry up and Wait. They try to hurry you to sign and then you go wait and wait. Its best to just make your decisions and then forget it. Then when your turn arrives, it that much sweeter. Good Luck to you.

Permalink Reply by Missy on June 10, 2010 at 18:10

Months passed, I meant. I also know that sometimes they build a location and then dont drill for a long time. Long enough for the permit to expire. Why would they do this? Its so expensive to build a site. Not to mention getting the hopes up for those with interest.

Permalink Reply by Les Bamburg on June 11, 2010 at 3:44

Missy, operators have lots of locations that they need to drill so priorities can result in well permit expirations. I believe in most cases they will simple repermit and drill later.

Permalink Reply by Missy on June 11, 2010 at 12:13

Les,
I agree. Just take a drive around the countryside,( Bienville Parish for me) and you can see that they definately have alot of work to do.

Permalink Reply by Lorea Cobb on June 15, 2010 at 4:40

Missy;
I know what you mean. They built a site almost three years ago behind one of our neighbors and to this day, they have not used it. Instead, they picked a new site, right in the middle of the neighbor's hay field. Go figure. I think knowledge and patience are the best assets we have, and need to use to our full advantage. Thanks for the info.

Permalink Reply by Skip Peel - Mineral Consultant on June 15, 2010 at 4:48

Lorea and Missy, think about how HA horizontals are drilled. In order to get the longest possible lateral you would want to start as close as possible to the section line. If you are drilling north and south (the predominant direction for most wells) you will want to be on an east-west section line in order to drill north and south into the adjoining sections. Better yet drill each well for a section from the adjoining section to get that maximum lateral. Now get one right of way for both the well road and the pipeline. If there is close access to an existing parish road or state highway that's even better. Being in a corner of four sections is even better (if you have drilling units for all four). Now you have a pad, a road and a pipeline that can accommodate 24 HA wells. If you have BO (Bossier) also, another 24. Understanding the value of an advantageous surface location is important for those ideally situated when negotiating a lease. Lorea, that old pad you mention was likely sighted for a vertical well before the HA came along and is not in the correct location for a HA horizontal.

Permalink Reply by Lorea Cobb on June 15, 2010 at 6:08

Skip:
I agree with you about picking a site best suited for the operator. What is best for them is not always ideal for the land owner (middle of hay field). However, that is where negotiations come into play. In this instance, the neighbor negotiated a location across the street from their chosen site, and both were satisfied. Also, that old pad site was built when Will-Drill was drilling into the Cotton Valley and Hosston formations. It seems to me that the old site was close enough from where they are building the new pad. But, I guess it was not close enough. Thanks Skip.

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