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Permalink Reply by Les Bamburg on July 19, 2010 at 17:25

Doc, some operators already have all acreage held by production and are moving into the development mode.

Natural gas is marketed and sold on a month-to-month basis as produced. So speed of development is somewhat a function of the operator's outlook for future gas prices (and his gas price hedging position).

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Permalink Reply by king john on July 20, 2010 at 2:44

les, or anybody else...
when we hear about off-set wells are these part of the infill program? do off-set wells serve a function in the production of the well it off-sets?
kj

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Permalink Reply by Les Bamburg on July 20, 2010 at 3:07

KJ, off-set well is just another term for infill drilling, development drilling, downspacing, "gas factory", superpads, etc.

The off-set well does not really serve any function in regard to the original well.

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Permalink Reply by Doc L'Herisson on July 20, 2010 at 2:47

Thank you, Les B.
I have this quotation indicating that the primary goal for drilling is to hold acres rather than optimise production. No big secret.
There was another quarterly report for EnCana which basically said the same thing.
Thanks again. Good blog.


Red River Parish
May 15, 2010
Forest Oil - Haynesville Shale Update
Forest Oil Corporation (FST) reported earnings for the first quarter of 2010, and held a conference call on May 4, 2010 to discuss the results. The company made comments on its acreage in the Haynesville Shale.


“We've seen deals by offset operators in recent weeks that price Haynesville/Bossier acreage at $10,000 to $15,000 an acre depending on how you calculate it.”


“In our Haynesville/Bossier program, we added almost 17,000 net acres of land in the core during the first quarter. This increases our core acreage to almost 28,000 net acres. We currently have two wells pending completion in Red River Parish. In addition to our operated activity, we participated in two outside operated wells completed in the first quarter for average initial rates of 22 million cubic feet per day.”


“We have four rigs drilling, two in Woodardville Field in Red River Parish and two drilling in the Sabine Parish portion of the Bossier. As we have stated previously, the majority of our drilling this year is to hold leases, and we will have almost all of our land held in this play by the end of 2010".

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Permalink Reply by Les Bamburg on July 20, 2010 at 3:12

Doc, that was the reason I said some operators. Exco has stated their acreage is 100% HBP. Other operators with holdings primarily in East Texas have made similar statements. This is the reason we are starting to see additional wells being drilled into units with producing wells.

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