Haynesville “Shale” Play–Is
There a Sting in the Buzz???
With Cheasapeake’s announcement of its belief that ” the
Haynesville Shale play could potentially have a larger impact
on the company than any other play in which it has
participated to date” the industry has -ahem-taken notice.
Petrohawk announced that it had/was acquiring an additional
60,000 acres in the play, including some in and around its
Elm Grove field production. Lease hounds have been baying
at the petromoon while trying to beg, borrow, toplease, JV
into and otherwise acquire a respectable acreage position in
the play.
Not being part of Chesapeake’s geoscience team, and not
having sat their rigs as they’ve made hole through the
Haynesville section good, hard intelligence on this play is
pretty sparse. Chesapeakes’ SRLT 29 #2
API # 17-017-34257 was completed in the Haynesville with an
IP of 2647 MCF /D .Lots of people are thinking that this is a
shale play like the Barnett. If it is, then there’s a TON of
upper Jurassic shale throughout East Texas all the way over
to the Mississippi Interior salt basin that may be good.
Boudreaux gets to upgrade the pirogue, Shreveport’s
riverboat casinos party hardy with new petro dollars, and the
good times roulez.
If, however, however, there is a Terryville sand -type fraction
in the Haynesville section that’s the target, then maybe
acreage selection has to be a bit more selective and rely on
hard data like seismic and good ol’ isopachs and sub -
surface mapping.
At measured depths of 14000′ plus these wells ain’t cheap so
let’s hope the reservoir supports the buzz…..check out the
general permit map for permits last 700 days > 10000′ for an
overview of activity
Haynesville-shale player Petrohawk Energy Corp. is “well
beyond” its last announced position of 150,000 acres in the
play and overall leasing in the play is 80% complete,
according to president and chief executive Floyd Wilson, but
the emerging Bossier formation potential could expand the
play even further, he predicts.
Wilson spoke at Oil and Gas Investor’s Energy Capital
Investment Symposium in Houston on Wednesday.
“We’ll buy all the quality land that we can,” he said. “You don’
t get an opportunity like this very often. We’re right in the
middle of it, we already have a lot of land and we want more.”
Already the company is in a position to drill for decades, he
said, and not “ratty” locations where success is hit or miss.
“These are places where we can drill thousands of wells with
no dry holes.” Petrohawk has three rigs running at present
and plans to have 10 by year-end.
The company is estimating reserves of 5 billion cubic feet per
well at a well cost of $6- to $7 million with 50 billion cubic feet
recoverable per section. With production tests on eight wells,
Wilson said the recoverables “calculate better per section
than the Barnett does.”
Since April lease costs have escalated to $10,000 to $15,000
per acre for a typical three-year, 75% net-revenue-interest
lease and into the $20,000s for deeper rights extending
beyond the three-year time frame.
And do the economics of the play justify such lease costs?
“For sure,” he said without pause. “We haven’t seen anything
yet to dampen our enthusiasm for the play. Hence our
spending activities over the last month or two increasing to
hundreds of millions of dollars per week.”
Growing data on the Bossier formation, however, which lies
just above the Haynesville shale, is adding a new facet to the
play, he said, possibly expanding the size of the play south in
Louisiana and further west into East Texas beyond the
boundaries of the Haynesville. The Bossier comes into play
where the Haynesville gets thin and could be just as good as
the Haynesville.
Although some reports have interchanged the terms for the
Haynesville and Bossier trends as synonymous,Wilson
makes a distinction that they are overlapping but separate
trends.
“The Bossier is just picking up speed and may double the
size of the overall area,”Wilson said. “The Bossier seems to
be very real, all the way over to Rusk County ” in East
Texas
. “It’s going to go quite a ways over there.”He said Petrohawk
will continue leasing as far west of the northern Louisiana
epicenter of the play as research indicates. “Our focus has
been the Haynesville and it still is, but we have certainly
shifted gears over the past two months to try to pick up
leaseholds in the Bossier play as well.”
Some East Texas lease holders targeting the James lime and
Travis Peak trends are “looking pretty prospective now for
Bossier,” he adds.
Wilson said the play is breaking so fast that it will likely cause
bottlenecks in rigs and takeaway capacity in a year or so. He
expects 100 rigs running by mid 2009, up from five at the
beginning of 2008, and horizontal rigs with top drives are
becoming scarce.
“You’re looking at a huge traffic jam of people hauling rigs up
into this area over the next couple of years.”
Getting the anticipated gas out of the area and into an
interstate pipeline is going to be an issue as well. If you’ve
got a lot of wells coming in at 5- to 15 million cubic feet a day,
you could get this field up to a Bcf (billion cubic feet ) a day
rather quickly. If it gets to a Bcf, we don’t believe there’s that
much capacity there.”
Another pipeline will need to be built to handle the capacity,
he said, as the existing infrastructure is currently close to
capacity transporting Barnett shale production through the
region.
There a Sting in the Buzz???
With Cheasapeake’s announcement of its belief that ” the
Haynesville Shale play could potentially have a larger impact
on the company than any other play in which it has
participated to date” the industry has -ahem-taken notice.
Petrohawk announced that it had/was acquiring an additional
60,000 acres in the play, including some in and around its
Elm Grove field production. Lease hounds have been baying
at the petromoon while trying to beg, borrow, toplease, JV
into and otherwise acquire a respectable acreage position in
the play.
Not being part of Chesapeake’s geoscience team, and not
having sat their rigs as they’ve made hole through the
Haynesville section good, hard intelligence on this play is
pretty sparse. Chesapeakes’ SRLT 29 #2
API # 17-017-34257 was completed in the Haynesville with an
IP of 2647 MCF /D .Lots of people are thinking that this is a
shale play like the Barnett. If it is, then there’s a TON of
upper Jurassic shale throughout East Texas all the way over
to the Mississippi Interior salt basin that may be good.
Boudreaux gets to upgrade the pirogue, Shreveport’s
riverboat casinos party hardy with new petro dollars, and the
good times roulez.
If, however, however, there is a Terryville sand -type fraction
in the Haynesville section that’s the target, then maybe
acreage selection has to be a bit more selective and rely on
hard data like seismic and good ol’ isopachs and sub -
surface mapping.
At measured depths of 14000′ plus these wells ain’t cheap so
let’s hope the reservoir supports the buzz…..check out the
general permit map for permits last 700 days > 10000′ for an
overview of activity
Haynesville-shale player Petrohawk Energy Corp. is “well
beyond” its last announced position of 150,000 acres in the
play and overall leasing in the play is 80% complete,
according to president and chief executive Floyd Wilson, but
the emerging Bossier formation potential could expand the
play even further, he predicts.
Wilson spoke at Oil and Gas Investor’s Energy Capital
Investment Symposium in Houston on Wednesday.
“We’ll buy all the quality land that we can,” he said. “You don’
t get an opportunity like this very often. We’re right in the
middle of it, we already have a lot of land and we want more.”
Already the company is in a position to drill for decades, he
said, and not “ratty” locations where success is hit or miss.
“These are places where we can drill thousands of wells with
no dry holes.” Petrohawk has three rigs running at present
and plans to have 10 by year-end.
The company is estimating reserves of 5 billion cubic feet per
well at a well cost of $6- to $7 million with 50 billion cubic feet
recoverable per section. With production tests on eight wells,
Wilson said the recoverables “calculate better per section
than the Barnett does.”
Since April lease costs have escalated to $10,000 to $15,000
per acre for a typical three-year, 75% net-revenue-interest
lease and into the $20,000s for deeper rights extending
beyond the three-year time frame.
And do the economics of the play justify such lease costs?
“For sure,” he said without pause. “We haven’t seen anything
yet to dampen our enthusiasm for the play. Hence our
spending activities over the last month or two increasing to
hundreds of millions of dollars per week.”
Growing data on the Bossier formation, however, which lies
just above the Haynesville shale, is adding a new facet to the
play, he said, possibly expanding the size of the play south in
Louisiana and further west into East Texas beyond the
boundaries of the Haynesville. The Bossier comes into play
where the Haynesville gets thin and could be just as good as
the Haynesville.
Although some reports have interchanged the terms for the
Haynesville and Bossier trends as synonymous,Wilson
makes a distinction that they are overlapping but separate
trends.
“The Bossier is just picking up speed and may double the
size of the overall area,”Wilson said. “The Bossier seems to
be very real, all the way over to Rusk County ” in East
Texas
. “It’s going to go quite a ways over there.”He said Petrohawk
will continue leasing as far west of the northern Louisiana
epicenter of the play as research indicates. “Our focus has
been the Haynesville and it still is, but we have certainly
shifted gears over the past two months to try to pick up
leaseholds in the Bossier play as well.”
Some East Texas lease holders targeting the James lime and
Travis Peak trends are “looking pretty prospective now for
Bossier,” he adds.
Wilson said the play is breaking so fast that it will likely cause
bottlenecks in rigs and takeaway capacity in a year or so. He
expects 100 rigs running by mid 2009, up from five at the
beginning of 2008, and horizontal rigs with top drives are
becoming scarce.
“You’re looking at a huge traffic jam of people hauling rigs up
into this area over the next couple of years.”
Getting the anticipated gas out of the area and into an
interstate pipeline is going to be an issue as well. If you’ve
got a lot of wells coming in at 5- to 15 million cubic feet a day,
you could get this field up to a Bcf (billion cubic feet ) a day
rather quickly. If it gets to a Bcf, we don’t believe there’s that
much capacity there.”
Another pipeline will need to be built to handle the capacity,
he said, as the existing infrastructure is currently close to
capacity transporting Barnett shale production through the
region.
Hidalgo Partners
2806 Elm Grove Ct.
Kingwood, TX 77339
ph: 713-208-4196
fax: 832-201-9978
alt: 512-422-0508
deanphilpot@bigoilfields.com
2806 Elm Grove Ct.
Kingwood, TX 77339
ph: 713-208-4196
fax: 832-201-9978
alt: 512-422-0508
deanphilpot@bigoilfields.com
BigOilFields.Com
