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Permalink Reply by Skip Peel - Mineral Consultant on October 30, 2011 at 4:05

Haynesville operators are not going back to drill second wells in all their established and producing units as a general rule.  Instead they are proceeding with full development in selected units where they drill all the wells allowed by state spacing regulations.  All the Haynesville operators are now in full development mode with few occasional first unit wells by the likes of Chesapeake, EnCana, SWEPI and Petrohawk.  As to why they are producing this much gas, this answer is cash flow to service debt.  All these companies ran up a lot of debt competing for the large leaseholds they are now developing.  In order to service that debt in a period of depressed nat gas prices, they strive to produce an mcf for the lowest cost.  This is accomplished by drilling where the rock is good and all the required infrastructure is in place.  Several companies have reported  that they expect to increase drilling for Bossier Shale in 2013 but there are plenty of Bossier wells being drilled now by some operators.  Whenever you see more than 8 Haynesville wells in a section, one or more are Bossier wells.  Keep in mind that the Haynesville units include the Mid Bossier in their depth definitions.  Therefore the wells will still be considered Haynesville wells.  You have to compare the Total Vertical Depths (TVD) to tell which wells in a unit are Haynesville and which are Bossier.

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Permalink Reply by elizabeth person on November 4, 2011 at 3:25

Anything about Millie White survey with Chesapeake?

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Permalink Reply by Skip Peel - Mineral Consultant on November 4, 2011 at 3:28

elizabeth, this is a discussion of Haynesville drilling in LA.  You should post your question in the correct E. TX. group.  Find the groups shown on the Main Page and click on View All.  Then go through the groups listed to find one that fits your area.

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Permalink Reply by elizabeth person on November 4, 2011 at 3:36

 Many thanks sir. I appreciate your help

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Permalink Reply by P.G. on October 30, 2011 at 5:38

In sections where they let the drilling permits expire, do they have to send out notices all over again when they re-apply for the permit?

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Permalink Reply by Skip Peel - Mineral Consultant on October 30, 2011 at 5:41

Notice letters are not sent for well permits, only for units and alternate unit well applications.  You can easily check SONRIS Lite for well permits by date and parish.

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Permalink Reply by Les Bamburg on October 30, 2011 at 18:03

VSC, some sections already have way more than two wells.  Development plans by company will vary dependent upon acreage position in the play, earnings growth objectves and acreage positions in other plays.  Development plans are always being re-evaluated and adjusted based on changing circumstances.  Most operators are realizing gas prices of $5.00+ (NYMEX basis) due to hedging activity.

 

Bossier Shale drilling is already occuring in some areas of the play but it will continue to be second tier in activity to Haynesville Shale drilling.

 

Drilling plans are generally discussed in the quarterly results calls and annual analysts meetings.  Companies like Halliburton do not design field development plans as that is left to the operators.  These companies just assist in designing well completions.

 

Long term prices below $4.00 will eventually cause a downturn in the Haynesville/Bossier Shale rig count.  

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Permalink Reply by Krkyoldhag on November 5, 2011 at 12:55

I wondered why the landman for the company told me there were going to be three wells drilled on my site.. I suppose the reason is the so called infrastructure..?  Meaning the pipeline?  Or  the land prep? 

I didn't ask if they would all be the deep slant wells..guess Bossier is not a deep slant well? 

Wish I had asked more questions..but I just don't know what questions to ask..I am just relieved that they are going to drill.  There is a lot of land out there in the Haynesville Shale area and tho it looks like there is a well every mile around here  there is still a lot of area for the drilling companies to pick from.  If they do drill and bring in good wells I will change my name from krky to happy old hag.

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Permalink Reply by Tex Calhoun on November 4, 2011 at 4:12

Low gas prices and the pursuit of oil and liquids have greatly slowed development of the HS. My family has a 76-acre tract of land in the Shelby Trough which has very high potential for strong Haynesville and Bossier production. We've been leased for four years (3-years plus a negotiated 1-year extension) and the operator is apparently going to let the lease expire on 11/9/2011 without drilling or renewing the lease.

While it is very disappointing, I'm sure someone else will lease the property eventually, but I would sure like for my elderly mother to get the benefit of royalties while she is still in good health.

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Permalink Reply by Henry on November 4, 2011 at 8:32

Same here.  I'm in a great place for both HA and BO shales.  There are many wells with IPs between 15 and 20 mmcfe/day within 3 miles of my land.  But the leases in my section were allowed to expire.  Gas prices will come up someday.  Until then, we all enjoy the money we got in the first round of leasing.

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