Replies to This Discussion

Permalink Reply by Clyde T. Williams on October 19, 2011 at 13:02

Long (>2000ft) Laterals require a whole bunch of good things to happen to not screw it up - Need:

Good geophysics and some good well logs (geo/physics)

Good cement jobs at the heel to hold the pressure in/behind the laterals

Good cement-plug jobs between fracks w/out blow thru to fracked zone

Good Shooter - perforating without crack threads/seams/welds

Good Mudder - not too thin/not too thick

I really don't see why they want to risk the entire well for going more than 2-3, maybe four fracks = one bad frack and the whole thing is gone.

Tom

 

 

Permalink Reply by WHuguet on October 21, 2011 at 3:05

Good thoughts on the long lateral.  Just hope they get done with all the "experimenting" soon and figure out a formula before interest fades.  

All things considered Joe, I don't buy that the sole purpose of the long lateral is to tie up acreage.  Maybe it's "a" consideration, but not "the." It's all about the $$$ of course (as it should be).  At the end of the day, do you want 25% more tied up acreage and some mediocre wells or some very good wells, which prove up the rest of your surrounding acreage and greatly increase your reserves?  Remember, Anadarko took mostly 5 year leases, so time is not a big enemy.  Long laterals were probably worth trying (who knows what new techniques they were experimenting with), and maybe it is now being shown that shorter dual laterals are the way to go. 

BTW, dual laterals likely won't result in smaller units, as you would presumably have laterals offset 180 degrees (to run with whatever fracture is thought to be there), resulting in the same 7-8k foot of lateral.  So instead of locating the well on the edge or just outside the unit, you would move it more to the middle.   As you've noted, nobody has really cracked the nut on the AUS chalk, except with limited success in a few scattered places like Master's Creek.

Attention should also be paid to the AUS C RA SUD; Indigo 16 Well (#243774), which is currently being drilled at a depth of 13,742'.  I believe this is also a dual lateral well, and is located about 4-5 miles West of the AUS C RA SUB Briggs 20 Well (#243221).  The Indigo Well (16-3S-5E) is almost directly between the Anadarko Dominique Well (27-2S-4E) and the Briggs Atinum Well (20-3S-6E).  If the Indigo Well is 2k + BOPD, activity should pick up for guys in our neck of the woods.

Permalink Reply by Joe Aldridge on October 21, 2011 at 3:50

Will,

I agree with most of what you are saying. However, I don't really understand the dual lateral thing. If you look at the SOP in the HA and in EF they are not drilling dual or multiple laterals in the shale from one surface hole. That to me seems to be the ideal place to do multiple laterals. In those areas they are doing multiple wells from one pad. 2-4 updip and 2-4 downdip on 640 acre units. Down here they are putting long lateral or dual laterals on 1200-2000 acre units. That is spreading the wealth around if you ask me. Again, my concern is the mud infiltration into the formation in chalk. In a shale formation you won't have that problem but in the Chalk you will and I don't care if you do a single long or dual short laterals then there is the possibility of damage because of mudding the formation up.  Also, of interest in TX they have a Rule 86 (I think) that governs the length of a lateral in a formation. Someone might clarify that if they have more information on it. We don't seem to have a rule that governs the length of a lateral in LA. These "Hot Dog" companies can come over here and do whatever they want and DNR doesn't do anything to protect the formation or the mineral owners or the State's interest in development. I would much rather see multiple short laterals from one pad much the same as is being done in the HA and EF. I think that would be the method to maximize the production from the formation. 

And, you guys, don't come here with the cost thing. These wells will payout in 120 -180 days at the current price of oil with 2000 bopd. From then on its just operating expense and that will be simple overhead of the operation in any production scenario.

Permalink Reply by Pierre N2 SE on October 28, 2011 at 3:54

I think Atinum is an investment firm.  Does anyone know who the actual driller is?  Also does anyone know who Woodland petroleum is leasing for?

Permalink Reply by Old Scout on October 18, 2011 at 10:04

Here's some interesting charts comparing 2010 TMS leasing activity vs. 2011: Charts

Permalink Reply by Madman on October 22, 2011 at 13:03

I understand how royalties are paid for oil production, but how is natural gas production measured?  How much is natural gas worth, and what would be a good monthly production number for this?  The Dominique projection is 1151 MCFD.  How does this number translate into royalties?  Thanks for any input.

Permalink Reply by Watt Keller on October 24, 2011 at 4:25

1151 is the daily production. Multiply by 30 to get your monthly. Then mulitply by the price of gas and that'll give you a base gross. All that's left is to multiply by your royalty % (from your Division Order) and you can get a ballpark guesstimate on what your position is in the gas production.

Ex:

1151 x 30 = 34530 x 4.00 = 138120 x .00333333 (example royalty %) = 460.40

 

Just remember you are working two months back on regular production when it's posted and not these projected figures. You can keep an eye on gas prices and log them so you have a decent guess as to what prices were then. When the production figures are posted you will have an exact amount to work from. Taking a projected figure is just that; projected. But you can use the above to get a rough idea. When the well goes into flow and production is posted you can call the company's royalty department and find out exactly. :-)

Permalink Reply by Madman on October 24, 2011 at 13:30

Thank you for your reply Watt.  In your opinion, how does the 1151 figure rate for daily gas production?  Just curious.  Thanks again.

Permalink Reply by Watt Keller on October 24, 2011 at 17:11

It's not bad. It's not great either but not bad. Anything over 1M is decent. The Austin is not as big a gas producer as the Tuscaloosa but it still produces quite a bit. An example of a top end strong AC well would be the new Atinum Briggs #1 with 6795 MCFD projected. With the low price of gas and a flooded market oil is what they are after right now. Gas tends to last a lot longer though.

I don't believe there is a pipeline up there as well. If Atinum brings in a strong well with their Indigo16 maybe they'll hook up with Anadarko and build a pipeline through that area and share the expense. They are going to need one when and if they come back in with filler wells. I could be mistaken but I don't remember a pipeline up there.

Permalink Reply by WHuguet on October 25, 2011 at 3:41

Watt,

There are a couple transmission lines in the area, including a brand new 42" Acadian Gas Haynesville line running from DeSoto Parish down to facilities near the coast of La., which happens to run right through NE St. Landry Parish (I don't know if this pipeline can be tapped into).  Also, the Dominique Well is already producing into an existing, but smaller transmission line which runs in a more E-W direction along the Northern boundary of St. Landry Parish.  So in this neck of the woods (NE St. Landry and extreme SE Avoyelles), there is some existing gas pipeline infrastructure.

Permalink Reply by Watt Keller on October 25, 2011 at 4:35

Good to know Will. Thanks. I wasn't sure how much pipe had been run up to where Moncrief and Gulf were producing in the old North Bayou Jack field. That old stuff should've run pretty close to Dominique but I wasn't sure. 

Have they put in storage tanks up there or are they trucking the oil out? Did they get their permit for a salt water disposal well? It's been taking around seven months to get those from what I've been hearing.

If Atinum does well outside the levee that could be a nice play if Anadarko comes back in with filler wells as well. Atinum should begin to make the first turn by this weekend with their Indigo16 I would guess. We'll see soon enough. 

Permalink Reply by WHuguet on October 25, 2011 at 5:00

There is a tank battery and they are trucking oil out.  Don't know about SWD Well.

Yep, Indigo 16 is big for the area and with the Atinum Briggs Well would prove up a fair amount of acreage in NE St. Landry.  I'm surprised Indigo Minerals isn't getting in on the action, as there is a lot of old ROM timberland in that area.  Do you know if Atinum is affiliated in any way with Indigo?  They seem to have come out of nowhere.

Also, I haven't seen the Indigo16 location.  Looks like it is E of Big Cane, but didn't know it was on the other side of the levee.  Is it pretty close to Hwy. 107?

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