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Permalink Reply by jffree1 on June 11, 2009 at 9:09

AL, Those last EOG permits are on the west side of Attoyac River not far from where that Red River HA well reported a little while ago. They could be looking for anything in a wildcat... HA, Bossier, shale, tight sands, lime. All are possiblities but I "think" it's probably safe to assume they are looking for whichever zone is going to produce the most gas. They may only drilll vert. to 17-18K to test and then back up the hole to go horz. The permit (deep, horz., wildcat) sort of covers all contingencies without them calling it an outright "Test" well and if the Angie is the only thing that shows well they can produce that and ammend the paperwork when they make a Proration Unit application. They don't have to name a Field (formation) of production until they apply for a proration unit. All you can do is read all of the posted documents and then make a guess.

Tx. vs. La. activity has some to do with money and some to do with drilling in areas where there is little or no failure rate. With budgets tight they need to make the most of their drilling dollars and that means getting that money back in the form of gas. So, they are drilling where they paid the most money which should have also been where the prospects were the best for making a good well. I'm sure they would rather not lose any of those incredibly expensive leases but if they do it's a right off.

East Tx. is going to be considered more risky except in the places where the shale has already been proven up and where there is already known production in other formations.

I'm sure you have seen comments that the "Core" has shifted somewhat to the south when originally they were leasing and drilling anywhere in Caddo Parish. That's because there have been a few notable losers to the north.

Permalink Reply by Carter on June 11, 2009 at 16:04

Lot of good points in this post, J.

Permalink Reply by jffree1 on June 11, 2009 at 17:50

Thanks Carter and where have you been hiding? This is a deadly dull place lately. We need to find something to shake it awake again.

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