Wednesday, May 5, 2010

Petrohawk to Restrict Choke on All New Wells

Petrohawk Energy released its first quarter earnings earlier today.  While analysts like to hear more about company's liquids and oil from its Eagle Ford Shale holdings, Petrohawk did find the time to discuss its Haynesville Shale operations. 

The company indicated that it will maintain 14 rigs in the Haynesville Shale after trimming Haynesville capital spending and shifting some resources to the Eagle Ford.  Petrohawk said that it is seeing improved results from changes in its completion design.  While the press release didn't note the specific changes or quantify the improvements, it did note that the guinea pig wells are in the Coushatta area of Red River Parish.  Hopefully more details will follow.

Petrohawk also provided an update on its restricted choke program, where wells flow on narrower choke settings, typically 14/64" rather than 22-24/64".  The trade-off for lower initial production rates is thought to be higher ultimate recoveries and flatter decline curves.  I guess the program is working because the company has chosen to produce all of its new wells on restricted chokes rather than just a pilot group.  I look forward to day the company publicly quantifies the success of this program, especially the flatter decline curves it is seeing.  So far, steep decline curves are the biggest slam against the Haynesville Shale.

Petrohawk also has begun testing some already producing wells to see if the restricted choke technique can improve long-term production.  The company converted a group of wells producing at a 24/64" choke to a 14/64" setting.  Results seem promising, but it is too early to make a system-wide change.

Finally, the company's first Mid-Bossier shale well, the Whitney 19 #1H is expected to spud this month, a little later than previously announced.

1 comment:

Anonymous said...

I will be interested to see the results of their bossier well. Maybe it's just me but in many ways they have set the curve with drilling donkey kong producers. I would be equally curious to see if they produce that first bossier well on a restricted choke. If it goes well it would seem to have a certain appeal to investors if it bumped 20 mm/day.