Replies to This Discussion

Permalink Reply by Les Bamburg on August 28, 2010 at 18:34

Michele, the operator determines how much gas is produced from a well. Even though the Louisiana DOC calculates an "allowable" it does not appear this number is ever really used to limit production from a gas well.

Permalink Reply by Michele Etzkorn on August 29, 2010 at 1:02

So why would an operator cutback on production if the numbers remain close to the same as at the time of initial drilling? High end @ 13,000+ cut down to 2882 over a period of a year.

Permalink Reply by Skip Peel - Mineral Consultant on August 29, 2010 at 2:21

Is there some indication that the operator has "cutback" production (reduced the choke setting)? If the well is not being produced on a reduced choke setting, the decline from 13,000 to 2,882 is in the range of the normal decline rate for the average Haynesville Shale horizontal well. There are a number of site discussions, some two years old, concerning the decline curve of Haynesville wells in the archives. Simply search with the key word, decline or decline curve.

Permalink Reply by Michele Etzkorn on August 29, 2010 at 4:43

SONRIS doesn't indicate such. Last DT1 report went from 4338 on 182 psi to 2332 on 82 psi for .5 hours. Roughly half flow, but statistically, still about the same. I would imagine the choke has been reduced. The operator has 5 more well permits they haven't initiated in the Section/Township. Last discussion with landman for operator was told the operator didn't have plans to drill on those permits until after 2010. Given the low gas prices and economic downturn, I'm not surprised. Operator is probably determined that flow will last a very, very long time with these indicators.

Permalink Reply by Skip Peel - Mineral Consultant on August 29, 2010 at 4:46

Michelle, perhaps you should consider providing the serial number of the well if you wish to have more specific comments.

Permalink Reply by Jeff on August 29, 2010 at 2:38

Les,
When the state "potentials" a well does that mean that this is what a well is allowed to produce? What if an operator flows a well at a rate higher than the potential? How does the state come up with the target?
Thanks, Jeff

Permalink Reply by Les Bamburg on August 29, 2010 at 3:32

Jeff, the allowable is set by the well test information submitted to the State by the operator on the Louisiana State Potential Report (SDM2G). This is the reason the scout report will list a well as "potentialed". I have not reviewed in some time but the rules allow the operator some flexibility if the well's monthly production exceeds its allowable. A well is tested every 6 months for the purpose of setting a new allowable. The allowables are established for 6 month periods (1st half & 2nd half of the year).