Tuesday, August 3, 2010

Petrohawk Update

Petrohawk Energy's second quarter earnings and operations report was relatively uneventful as it concerned the Haynesville Shale.  The company's discussion mainly centered on operational improvements to save the company money and improve ultimate gas recoveries.

First, as noted in a previous post, the company will try a modified wellbore design to do the fracture stimulation pumping at 10,000 psi versus the typical 15,000 psi.  This is important because there are only a few pressure pumpers that provide services at the higher pressures. They are in high demand and charge accordingly.  The 10,000 psi level is more typical for the region and there are many more contractors that can provide this service.  The end result if this test is successful should be a fairly significant decrease in completion costs (Petrohawk estimates this to be $1 million per completion).

Second, as the company has said before, it will continue to produce all of its Haynesville - and now Mid-Bossier - wells at restricted chokes.  Even its existing wells with less than 2,000 psi flowing casing pressure (FCP) will be choked back to 8/64" to 16/64" in an effort to improve recoveries and defer the need for field-wide compression.  Petrohawk generalized the results of its restricted choke programs:

  • 14/64" choke: average IP of 7.7 MMcf/day at 8,650 psi FCP
  • 16/64" choke: average IP 10.8 MMcf/day at 8,475 psi FCP
  • 18/64" choke: 15.8 MMcf/day at 8,005 psi FCP
While it is hard to generalize initial production data because of the differences in geology and other conditions by location, Petrohawk is adamant to prove to investors that lower initial production rates will yield higher production levels than less restricted wells before too long and higher total gas recoveries in the long-run.

Petrohawk also noted that the company's first Mid-Bossier well, the Whitney 19 H #1 in Sabine Parish, will be completed in mid-August.  The well encountered 210 feet of pay in the Mid-Bossier Shale and 220 feet of pay in the Haynesville Shale.  Petrohawk is currently drilling an offset to the Mid-Bossier well to target the Haynesville Shale to allow for a nice double-dip.

2 comments:

Anonymous said...

Does Petrohawk have any "petroleum engineers" on staff?

Maybe one of them could explain the relationship between pressure and flow to management...

Anonymous said...

The medium pressure created during the fracking of the well will determine the psi and flow. If you need a great flowback back company, call Faith Flow Control. Talk to Terry.