Replies to This Discussion

Permalink Reply by tony allen on July 19, 2010 at 16:54

Skip,
Is this a haynesville sand well and is it above or below the smackover?Thanks

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2010 at 2:00

tony, it's a sand well. The Haynesville formation is above the SMK. As to what formations are penetrated by this well, you will have to wait for the completion report. In some cases an operator may drill to a deeper formation(although they are technically not permitted to say the SMK) and then plug back and complete the well up hole in a shallower formation. In Webster and Claiborne there are numerous Gray Sand wells. The Gray Sand is a part of the SMK formation however I do not know if it is Reservoir A, B or C. Much of the interest up along the state line appears to be focused on the brown dense portion of the SMK. I do not know the depth or the order in the SMK sequence where it occurs. You might ask Mr. Aubrey Sanders Jr.

Permalink Reply by Aubrey C. Sanders, Jr. on July 20, 2010 at 7:13

I fully expect Jag will drill at least into the Smackover "A" zone based upon results of well they just completed drilling. I was told that well just being completed in this section was very good "A" zone well. These wells are within town of Springhill. There is good production from Haynesville Sand and Smackover "A", "B" and "C" zones. Mostly HBP. Initially drilled by Crystal Oil; later acquired by Apache, and now owned by Jag. They are very actively drilling. Mostly Haynesville Sand and Smackover, with some Pettett lime. All in the State Line Trend, both in Ark. and La.

A, B, and C references are to zones of the Smackover, not separate reservoirs. Brown Dense is part of Smackover underlying the "C" zone.

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2010 at 7:17

Thanks for the clarification Aubrey. What is the approximate depth of the Brown Dense in the State Line Trend?

Permalink Reply by Aubrey C. Sanders, Jr. on July 20, 2010 at 8:32

Skip,

Depth to BD will be less than 12,000 feet in this area; generally in range of 11,500 to 12,000 on La side. Gets progressively shallower in Ar. Probably less than 10,500 in Magnolia area.

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2010 at 9:00

Thanks, Aubrey. As the MVD is close to that of the HS in the upper third of the Play, I would expect drilling costs for a horizontal well with a similar length lateral to be roughly comparable. I suspect however that the completion cost may be different. How would the drilling or the completion design be different for a horizontal Brown Dense well? And what would be a reasonable cost range for a BD horizontal well?

Permalink Reply by Aubrey C. Sanders, Jr. on July 20, 2010 at 9:54

Skip,

I have no experience with horizontal drilling. However, someone with a company I sometimes have working interest with threw out a figure of $8 millio to drill and complete horizontal well in Smackover.This was in reference to horizontal to Smackover "C" zone. I would expect costs in Brown Dense to be just a little bit more expensive. I expect to see horizontal well drilled in Smack C in NS_RR Fld. this year. As to completion design and fraccing, I defer to the engineers. Most of them prefer that geologists stick to geology work! Nuff said.

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2010 at 10:19

Aubrey,

We have a limitless curiosity for the tech aspects of horizontal completions and Keith's permission to speculate all we wish regardless of our job title and/or experience. LOL! You actually answered the question I had not asked but was headed toward, Cost. If the cost is in the $8 - $9M range, do you have an idea of the level of production required to make such wells economic?

Permalink Reply by BirdDawg, plain ole' idiot on July 20, 2010 at 10:43

I heard today that the costs of the horizontal brown dense well being drilled in Arkansas is $5 million. But I did not ask the guy if that was completed or to casing point. He also stated that the measured depth on that well was 9900', with a horizontal of 4,000'.

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2010 at 11:01

Thanks, BDPOI. I suspect that the $5K is drilling but not completion cost with that TVD and MD. I guess I will have to look at some Eagle Ford or Bakken horizontal completions to get some idea of how the completion design may be different for a tight formation producing oil or liquids rich gas.

Permalink Reply by Aubrey C. Sanders, Jr. on July 21, 2010 at 3:32

Skip,

You do ask some great questions. The question about the economic aspect of horizontal drilling in Smackover is really challenging to me if you are talking about "A", "B", or "C" zones of Smackover. Given the estimated cost of horizontal well versus vertical well in those zones I think it would be more economic to drill 5 or 6 vertical wells in a 320 acre unit than to drill 2 horizontal wells in that unit. We will very soon have 5 wells in one such unit with tentative plans for one more. The current producing wells in this unit range in age from more than 50 years to one month.

In the case of the Brown Dense I believe that horizontal drilling will be required to make it its development economical. I would think that a production rate on the order of 800 BOPDE might be adequate to justify. This is a real horseback estimate. I think your idea to look at Bakken in N. Dakota for insight. They are doing frac. jobs with more than 20 stages. I have not researched that very much.

I do not have information or experience to do reservoir engineering analysis. I do expect that in not too distant future I may have to make election as to participation in drilling horizontal well. Hopefully the first one in NS-RR field will be in a unit other than ones I am in. If not, I will have to get reservoir engr. to help me make decision.

I hope someone who knows lots more than I do will step up to the plate. I need help on this one. Given the variabilty of the Smackover I am convinced that there are areas in which horizontal drlg. is the answer to make additional wells economic.

Keep up good work, Skip. We all have lots to learn about Brown Dense. It is pretty exciting.

Permalink Reply by Skip Peel - Mineral Consultant on July 21, 2010 at 3:42

That helps. Thank you, Aubrey.

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