Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 3, 2013 at 8:47

SWN wishes to make the Brown Dense an oil play which is a far greater challenge than making it a wet gas play like WLL.  The liquids at more shallow depth may have a greater percentage of black oil but they also have less formation pressure and the challenge of migrating larger molecules through very tight low perm formations.  Low permeability and larger molecules often make it difficult for sufficient hydrocarbons to flow to the well bore, especially a vertical well bore.

Permalink Reply by Francis Mayo on December 3, 2013 at 9:01

So this should be an expected occurence, or do you think the expectation was for higher bottom hole pressure, Skip?

Permalink Reply by Skip Peel - Mineral Consultant on December 3, 2013 at 10:29

I don't know what SWN expected, Francis.  SWN has described the L SMK trend as having an oil window, a wet gas window and a dry gas window (generally from N to S) much like the Eagleford in SW TX.   I suspect this well was an attempt to test the oil window of the Brown Dense in a general area where leases are nearing their expiration dates.  SWN needs to generate a lot more science in order to make decisions regarding what leasehold to drill, renew leases on or allow to expire.  2014 will be a pivotal year in the Brown Dense as much of the leases will be reaching their primary term expiration.  Typically the more gas in a formation the higher the pressure.  The pressure in the Union Parish fairway have been noted as an important reason for the better wells drilled there.

Permalink Reply by Francis Mayo on December 3, 2013 at 11:49

Thanks Skip. Guess we have yet to see a "company maker," as Willie and Mueller put it. 

Permalink Reply by Matthew Kable on December 3, 2013 at 13:26

From a quick look at the maps SWN has been publishing in their investor presentations, the McMahon well appears to be a good 50 miles away from the area that SWN has recently been talking about as being economic/commercial.  Any positive results out there would certainly be great news... can't wait to hear some "official" numbers on this well.

Permalink Reply by Francis Mayo on December 3, 2013 at 17:02

It will take some time to get the straight story, look at the Jackson with WLL. A "source" and preliminary reports are often so much smoke. 50 miles away or not, I hope it is economic and spurs something.  

Permalink Reply by tony allen on December 3, 2013 at 18:20

The rumors of an artificial lift have come from numerous sources. My understanding is the well was flowing back at over 5k psi last week and was still cleaning up. SWN may know when a lift needs to be installed but I doubt anyone else does. SWN's CEO Mueller stated in the 3rd Q operational update that high pressure would not necessarily determine the economics of the play. Why don't we just wait and see?

Permalink Reply by Matthew Kable on December 4, 2013 at 5:58

Has anyone heard the outcome of the Tuesday Arkansas Oil and Gas Commission meeting?  They were supposed to be ruling on SWN's request to flare gas from the McMahen #1-7 well.  See the attached link for details.  Also, many thanks to the Magnolia Reporter for their coverage lately on developments in the LSBD play!

http://www.magnoliareporter.com/news_and_business/local_business/ar...

Permalink Reply by tony allen on December 4, 2013 at 8:01

SWN did received approval to flare the McMahen.

Permalink Reply by tony allen on December 16, 2013 at 12:48

McMahen is being flared.

Permalink Reply by obed w odom on December 16, 2013 at 14:28

That is very good to hear, Tony. Please keep us posted.

Permalink Reply by Matthew Kable on December 18, 2013 at 12:57

From the Brown Dense Report Facebook page... 

Picture is of the McMahen well being flared on December 16th.

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