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Permalink Reply by Skip Peel - Mineral Consultant on November 16, 2008 at 13:20

Jim, as the HL wells Cheerleader is referring to are based on fault traps, is there a greater possiblity of dry holes? They sound more like a conventional reservoir play. Also, as to production potential, what would be a likely volume per well by mcfd? I have not read the Devon report referred to and if the 66-100 mcfd is correct, that is much less productive than a HS well. Horizontal or vertical.

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Permalink Reply by ALongview on November 16, 2008 at 15:20

Jim, This is from the 3rd quarter earnings report for Devon. I am curious if they are saying that based on a vertical with production like they got it is very economical vs. a shale horizontal with less production costing 6-8 million. If it is true that it costs up to twice as much to drill these lime wells as the shale then is it really true that a shale well in the Haynesville costs up to 11 million dollars? Also if it would cost 5.5 million to drill a vertical into the lime then what would the added cost likely be for Devon if they drilled a horizontal as they plan to in the near future. From Devon's earnings report "During the quarter we completed three outstanding 100% Devon vertical wells in the Haynesville Lime. The Oliver-4IP to of 26 million cubic feet a day, the case three at 22 million a day and the Jenkins-1 at 10 million a day. These wells only cost about $5.5 million on average to drilling complete making them very economic. We initiated a 3D seismic shoot over the filed during the third quarter and plan to drill six additional wells in the fourth quarter with our first quarter horizontal well planned for the first quarter of 2009 in the Lime. And Skip I think Cheerleader meant is it possible to have production in the 66-100 mmcfd not 66-100mcfd? I am curious also to hear the answer to that question.

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Permalink Reply by Skip Peel - Mineral Consultant on November 16, 2008 at 15:48

ALongview, I think you are right about Cheerleader's intent. Jim's comment about the fault traps made me wonder about the porosity and permeability of the HL. Is it a source rock or reservoir rock? Or both, as in the HS. It sounds like a conventional play as opposed to unconventional. Did the Devon report give any indication?

Permalink Reply by BirdDawg, plain ole' idiot on November 16, 2008 at 15:57

I think the big question is how big an area will the "lime" play cover. And is it conventional or unconventional. I think they may be a conventional play. Thereby being more risky. But great wells when you make them, no doubt.

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Permalink Reply by The_Baron on November 17, 2008 at 4:48

I would, but its cold outside...

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Permalink Reply by Cheerleader on November 16, 2008 at 17:15

Thanks guys,
I did mean 66-100mmcfd. I was using one well [20mmcfd] as an example with the possiblity of 3-5 times more on a horizontal.
How will we know when the LIME wells are completed unless the OG makes a specific statement? I guess we can assume the permit is "wildcat", but are we looking for particular depths to clarify the completion is in the LIME. Does anyone know the names of these three Devon wells so we can watch the production?

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