Wednesday, July 22, 2009

More Louisiana Completions

In reviewing records posted last week by the Louisiana Department of Natural Resources Office of Conservation, I noted a few recent (and a few updated) completion reports. First, the new completions:

  • Ninock 25-1, Petrohawk: 19.6 MMcf/day on 24/64 choke; Swan Lake field, Caddo Parish, LA; S35, T15, R11, Haynesville Reservoir A.
  • Moran 26-2, Exco Resources: 14.2 MMcf/day on 24/64 choke, 7,359 lbs PSI; Kingston field, DeSoto Parish, LA; S26, T14, R13, Haynesville non-unitized.
  • Jacobs ETAL 36-2, Petrohawk: 15.3 MMcf/day on 24/64 choke, 7,550 lbs PSI; Red River-Bull Bayou field, DeSoto Parish, LA; S36, T13, R11, Haynesville Res. B.
  • Kinsey 21-1, J-W Resources: 0.15 MMcf/day on oopen choke, 780 lbs Psi; Elm Grove Field, Caddo Parish, LA; S21, T16, R13, Haynesville Res. A.

The J-W well above was a vertical well drilled presumably to hold the lease. Honestly, I’d be really pissed if I’d leased to J-W and they were just drilling vertical wells to hold my lease. Since J-W is not publicly traded and doesn’t have the luxury of raising debt and equity capital in the public markets, this is one case where size is a disadvantage. J-W is either waiting for gas prices to rise substantially or looking to sell their leasehold to a bigger player. Don’t get me wrong, it’s a smart business move by J-W, but I would hate to be the guy on the other side of the lease who sees his neighbors hosting fat horizontal wells on their properties.

There were two other completions that showed up from the past eight months:

  • B.S. Moore ETAL-1 ALT, Forest Oil: 0.36 MMcf/day on 18/64 choke, 150 lbs PSI; Woodardville field, Red River Parish, LA; S12, T14, R10, Haynesville Res. A (a vertical well, completed 12/7/08).
  • Oden Heirs 30 H-6, Exco Resources: 12.8 MMcf/day on 20/64 choke, 6,857 lbs PSI; Holly field, DeSoto Parish, LA; S30, R14, T13, Haynesville Res. A (completed 12/3/08).

Ditto the J-W comment above to the Forest Oil B.S. Moore well. The Oden Heirs 30 H-6 well was reported back in February 2009 with a mambo 22.9 MMcf/day IP and a 15 MMcf/day average production rate (over an unknown period). In fact it made No. 12 on a top 20 list. I’m not sure why the restatement now, but it’s not clear if the new published rate is a revised rate or just a current rate.

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