Monday, April 27, 2009

SandRidge Energy: Update

SandRidge Energy is better known for its positions in the West Texas Overthrust, but it has a decent position of just over 36,000 acres in the Haynesville Shale. Most of the company's acreage, 22,500 acres, is in Rusk and Harrison Counties, TX. The company has drilled two vertical test wells in the Oakhill Field in Rusk County, encoutering 260 and 288 feet of Haynesville Shale. The first well tested at an initial rate of 1.5 Mmcfe/day.

Included in SandRidge's materials was a comparison of decline curves for various gas plays. The Haynesville type curve is the purple line below, third down from the top. Included in the comparison are the Warwick and Pinedale Fields in the West Texas Overthrust. Of the three shale plays, Haynesville, Barnett and Fayetteville, the Haynesville curve seems to have the most positive long-term characteristics. The slide also shows what we already know, that the upfront capital costs of drilling and leasing are more expensive in the Haynesville Play.

No comments: