More Bad News for Sabine OR Good News, Nabors Logan 34. Is the cup half full or half empty?

Replies to This Discussion

Permalink Reply by Skip Peel- Independent Landman on July 18, 2009 at 4:20pm

w.r. As this is the first HA completion in the Pleasant Hill Field, I wouldn't want members to be overly concerned. Particularly since it is a CHK completion. CHK is a capable operator but they are notorious for not reporting mechanical problems. There are two additional CHK and one ENC HA wells permitted in the field. I'd council patience. I'm not sure I know what "other bad news" you are referring to. Please remind me.

▶ Reply to This

Permalink Reply by Electrodynamics on July 18, 2009 at 6:56pm

Two years ago most people would let a company dozer their barn or even the house over for a guaranteed well producing above 1 mmcf a day and .20% royalities. I know that 4.12 mmcf sounds disappointing after we hear so much hype on the mega wells being completed now. And, as previous lower producing wells in some areas have shown, it can slow activity down some in that area if the flow rates prove correct. Skip is correct in his observation of CHK so don't get too worried just yet. Let some other wells in the area confirm these results.
If the lower rates prove to be correct and activity slows down just remember.....In the Barnett bigger companies went after the gravey first (just good business). They have and are now back going for what was considered marginal when the field was in it's youth. IMHO I believe this will be the case in the haynesville as well. Nobody should be disappointed or give up on lower producing wells unless you paid the company to drill them. I'm hoping someday we can all look forward to getting something besides bills in that mail box!!

▶ Reply to This

Permalink Reply by RR on July 18, 2009 at 9:41pm

I agree with both of you. The pipeline capacity there is still undeveloped. I was at the location after the Logan well on the same pad blew out the other day. Sounded like it had quite a bit more than 4 mmcf a day potential!

▶ Reply to This

Permalink Reply by Lee on July 18, 2009 at 10:17pm

Why are two figures provided for the potential? 4.116 and 6.043

▶ Reply to This

Permalink Reply by Les B on July 19, 2009 at 1:08am

WR, sorry but I would recommend you not post such a headline without a complete review of available information. The well tested at a rate of 6043 Mcfd with a flowing pressure of 8290 psi on a 10/64" choke. This shows every sign of a well that has been severely choked back on flow which is consistent with Chesapeake's philosophy for recently completed wells.

I say this is excellent news for Sabine Parish and I might suggest you revise the title of the discussion.

▶ Reply to This

Permalink Reply by waltcop on July 19, 2009 at 8:36am

Les B,
Their are many reasons why I appreciate your posts so much, and your post above is one of them. Thank you for keeping us positive and informed.

▶ Reply to This

Permalink Reply by Les B on July 19, 2009 at 1:13am

I would like to remind everyone that the first horizontal Haynesville Shale well in Red River Parish tested at a rate of 8 MMcfd. Now, some wells in Red River are testing at > 20 MMcfd so don't get discouraged with the results of an initial well in an area of the play.

▶ Reply to This

Permalink Reply by jffree1 on July 19, 2009 at 9:02am

Is that because the shale is different from one area to the next and in one that is not thoroughly understood yet, it may take awhile to come up with the "right" frac design/recipe?

▶ Reply to This

Permalink Reply by Les B on July 19, 2009 at 9:52am

Jffree, that is exactly right. I have read statements by several of the operators that the Haynesville Shale has a different "make-up" in the central, Texas & the northern regions requiring different approaches to frac design. They have generally experimented with frac design, number of stages & lateral length to arrive at the optimum.

I suspect the southern portion of the play in Sabine & Natchitoches Parish will also be a learning experience.

▶ Reply to This

Permalink Reply by jffree1 on July 19, 2009 at 10:12am

Thanks, Les. I have read enough about IP's, declines and the variances in just what flow rate is being reported from one company to the next, that I don't put much emphasis on the headlines.

▶ Reply to This

Permalink Reply by Henry on July 19, 2009 at 6:08am

Everyone focuses on IPs. Is there any way yet to know if these lower IPs will result in lower EURs? It's EUR that matters to me.

▶ Reply to This

Permalink Reply by Grillin' - MmmMmm on July 19, 2009 at 10:34am

The IP's, alone and by themselves, aren't necessarily a forebearer of EUR. There are "rules of thumb" that some use to estimate EUR from IP, but they aren't very scientific. With so many wells being choked back for a variety of reasons, its really hard to look at IP and really tell what the well will or will not do. However I believe Les' post above has some vital information...the flowing tubing pressure of 8290 psi and the 10/64 choke. That is a choked back well if I ever saw one so that IP is not really a true indication of what that well can or cannot do. Step back, look at what this well is producing 3-6 months from now. There is a very very good chance that this well will not see huge declines like the "monster" wells, which again would be evidence that this well is being choked back.

In today's environment, there is no reason to produce a well at 10 or 20 MMCF/day. Prices suck, pipeline capacity is limiting and storage is filling up fast! The only reason anyone is drilling right now is to get wells on production and HBP as much acreage as possible.

I haven't looked at any of the drilling records lately, but can anyone tell me if folks are drilling second, third or fourth wells into HBP units? That would be interesting. I know at least one company that has a policy against it right now but that's just one of many drilling out there.

▶ Reply to This

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page