landowner

Pipeline Capacity Issues

I have interest in Haynesville wells near Greenwood, LA. Four wells have been completed in Section 4, T16N, R16W. However, no production has been started to my knowledge. Based on what I can find out, the pipelines are near capacity, and when production does start, it may be limited due to this issue. Are there any projects or planning underway to address this?

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Oil & Gas ProPermalink Reply by Chad Ellis on November 29, 2022 at 13:39

Good evening,

Who is the operator on these wells?  Some operators build their own pipelines, while others have agreements with pipeline companies.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on November 29, 2022 at 13:40

William, the wells are complete and likely turned to sales weeks ago as the last report on SONRIS is 11/9.  Silver Hill wouldn't drill and complete wells if there was insufficient pipeline capacity to turn them to sales.  That wouldn't make any sense.  It is common for Initial Production reports take take some weeks to appear in the database and some months before mineral lessors begin to receive any mailbox money.


Oil & Gas ProPermalink Reply by Rock Man on December 3, 2022 at 7:20

In a general sense, pipeline capacity in a high volume and active gas play like the Haynesville and/or Bossier is a huge issue. I know we have addressed this in other posting over the past 2-3 years.

New pipelines with capacity to take gas to market (whether for US consumption or LNG export) take time to permit and construct. The existing gas pipeline network and its capacity capabilities are the key here.

Very difficult for one to find out the status of any gas line as to "room for new production".

All operators in the trend are looking at this LONG before drilling begins.

Being a gas line company today in this area is a good place to be - gas transmission fees and related production costs that need to be paid to midstream companies can result in big money for those groups.

Especially when one is considering wells making 20-25 Million CF per day!

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