Wednesday, January 27, 2010

Crimson Exploration Refocuses on Haynesville

Crimson Exploration is sharpening its focus on Texas after selling some producing properties in southwest Louisiana. The company has contracted another drilling rig for delivery in March 2010 and expects to drill seven gross (three net) wells this year in the Haynesville/Bossier Shale on a capital budget of $36 million, which represents 64% of the company’s total capital budget. (article)

Crimson’s acreage is located at the southwestern edge of the play, in Sabine and San Augustine counties, TX. It has 30,000 gross acres (12,000 net) and is responsible for perhaps the most famous well in the play, the Kardell #1, which had an initial production rate of 30.7 MMcf/day (Devon was the company’s partner in the well). The map below shows Crimson’s acreage (light yellow shading, red outline) and its 2010 expected drilling sites.



I thought the map below was interesting for more than the mod 70’s look. It shows why the southern part of the Haynesville Play has suddenly become so exciting. The map shows where the highest initial production rates are found in the Haynesville Shale, and the bright red spot at the bottom is the area around the Kardell well. Unfortunately, it cuts off at the southwestern part of the play, just above the Crimson leases, likely because of a lack of completions data. I’m sure Crimson would love to see those bright colors covering its acreage.



In terms of well economics, Crimson estimates well costs at $10 million per well and estimates a 6.5 Bcfe estimated ultimate recovery (EUR) per well. In addition to the Haynesville Shale and the Mid-Bossier Shale, Crimson also intends to drill for the James Lime, which is a shallower formation above the Cotton Valley, Travis Peak and Pettet formations.

4 comments:

barronvaughn said...

That thumbnail map labeled "East Texas Resource Play" is outstanding, where can you get the maps of the other circled areas on the TX/LA image to the left and above the text: "cxpo areas of operations"??

Robert Hutchinson said...

The map came from an investor presentation from earlier this week (http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzYzNTAyfENoaWxkSUQ9MzU3ODUwfFR5cGU9MQ==&t=1). Try that link and let me know if it doesn't work. The other maps may not be as informative as the Haynesville map, but I guess it depends what you're looking for.

barronvaughn said...

Great, thank you very much

Anonymous said...

If you overlay a color coded operator map on that monthly rate map, you start to see the whole story. A certain large outspoken company dominates all the bad spots.