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Permalink Reply by Skip Peel - Mineral Consultant on October 18, 2022 at 13:19

Jed, Section 23 is a little bit of a puzzle.  The immediate area is proven for Haynesville and Bossier reserves but there has been no Haynesville unit formed.  Here is my best guess.  There are producing wells in Section 23 that are holding old leases in force.  Comstock has Haynesville units to the immediate north and south, so I suspect that the company has already acquired the deep rights in 23.  As long as there is production holding the old leases and Comstock has plenty of other Haynesville units that need new wells, 23 may be on their back burner.  I feel sure that it will get drilled and get 12 wells at some point in the future.  I just can't say when that might be.  Only Comstock knows.

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Permalink Reply by Jed Clampett on October 18, 2022 at 13:43

  Sorry....forgot to mention as best I can tell XTO has deep rights.   There are many shallow wells producing piddly amounts of gas. 

Thanks for info on Bossier formation information!  Thanks.  Any more inputs would be appreciated ..even if speculative.

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Permalink Reply by Skip Peel - Mineral Consultant on October 18, 2022 at 13:51

XTO having the deep rights would also delay Haynesville/Bossier development because long lateral wells are not possible without some agreement with Comstock.  XTO could certainly drill short lateral unit and alternate unit wells but that is not ideal.  Another reason to not drill Section 23 until those shallow wells near depletion.  XTO could allow Comstock to drill long lateral wells through 23 but that is impossible to predict.  XTO (ExxonMobil) has beau coup places to drill.

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Permalink Reply by Jed Clampett on October 19, 2022 at 2:43

  There are 10 shallow low volume vertical producing wells in section 23.  Does this large number of vertical wells (by itself) in any way slow down HZ  shale development?  

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Permalink Reply by Skip Peel - Mineral Consultant on October 19, 2022 at 2:50

Those old vertical wells are holding in force old leases.  Wherever that situation exists, the holder of the deep rights (Haynesville) is not compelled to drill under pressure from an expiring lease term.  From a drilling perspective however, those old vertical wells would not be a factor in the drilling, completing and operation of horizontal Haynesville wells.  Most Haynesville operators have hundreds of well locations yet drilled and will sit on deep rights held by existing production.  XTO is ExxonMobil and that super major has tens of thousands of well locations they can drill.  Section 23 may not even be on their radar until those old wells begin to cease producing.

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Permalink Reply by Jed Clampett on October 19, 2022 at 2:54

 Great explanation/answer as always Skip. Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on October 19, 2022 at 3:00

You're welcome, Jed.

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