Wednesday, August 18, 2010

Crimson Exploration and Mid-Bossier Update

Today, Crimson Exploration announced the completion of its Grizzly #1 Middle Bossier Shale well in San Augustine Co. TX in the company's Bruin prospect.  The well, which is still undergoing some cleanup, IP'd at 11.5 MMcf/day on a 16/64" choke at 9,100 psi.  Given the restricted choke, Crimson is very pleased with the well's result, stating that the well "has validated the reserve potential of the Mid Bossier Shale in its Bruin Prospect Area."

Crimson also touted the fact that the well was completed using a restricted choke technique, a practice that the company described as "industry-best practices for reservoir optimization to maximize ultimate recovery."  Crimson is on board with the restricted choke technique based on the results of other operators.  Production charts from the first two weeks of the Grizzly well ("Graph 1" below), indicate a higher pressures and steadier flow rates.  But of course, two weeks of data does not validate the process.  Still, it is encouraging.

Crimson seems to believe that if the company opened the choke much wider it could produce stunning results.  A second graph provided by the company (below) compares the early Grizzly results to those of the infamous S. Kardell #1H well before it was opened up to a 38/64" choke to achieve a 30.7 MMcf/day flow rate.  The Kardell well is infamous because the gaudy IP rate attracted a lot of attention to the San Augustine area, but the high flow rate was short lived because of damage to the well from obstructions likely loosened by the wide diameter of the choke.  Crimson participated in that well and I'm sure feels stung by the experience.  More than others, Crimson has probably been watching the restricted choke tests very closely.

I've updated the Mid-Bossier list with the self-reported flow rates on the Grizzly well.  I've also added another Mid-Bossier well that is waiting on completion, the Southwestern Energy Harris B #1 H.

No comments: