Wednesday, June 1, 2011

Haynesville: The New Liquids Play???

Well, not exactly, but I did note a new Haynesville Shale (actually Jurassic) completion from last October that appeared in the DNR system this week from Encana that had an initial production of 19 barrels of condensate per day.  There was a lot of gas too, so the gas/oil ratio was a whopping 625,210 to 1:

  • Weyerhaeuser 22 H #1, Encana Corp.: 11.879 MMcf/day IP on 24/64 in. choke at 8,686 psi casing pressure; Perfs: 13,586'-18,076', length: 4,490 ft.; Bayou San Miguel Field, Sabine Parish, S22/T9/R12; res. Jurassic-A, serial #241097
I don't have any more details at this point.  As much as I'd love to declare (or start the rumor) that Haynesville is the next big liquids play, I can't convert blind optimism into reality!

7 comments:

Tom said...

Seems this well produces a little less than 2 barrels per MMcf. So here is some thoughts from Seeking Alpha

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From Seeking Alpha

http://seekingalpha.com/article/210409-liquid-rich-natural-gas-plays-are-the-hot-commodity-for-institutional-investors

---------------------------

At a natural gas price of $4.50 per million cubic feet (mmcf), 40 barrels of liquids per mmcf improves revenue to $7/mmcf plus, an executive at one junior producer told me in a recent interview.

And at 20 barrels per million, it’s almost $6/mmcf gas equivalent. He told me that on operating income that’s an improvement of 40% for 20 bbl/MMcf and close to a double for 40 bbl/MMcf.

Anonymous said...

Any news out of Nancy Brewster or Jordan. Seems pretty quiet on the "liquid under the Haynesville" topic. GMX continues to apply for vertical oil/gas wells, however not much other than that.

Robert Hutchinson said...

The Brewster seems to be sending mixed messages. I understand from eyes on the ground that the operators have removed tanks that would have stored oil (since it is not on an oil gathering system). I've heard that they have plugged above the Norphlet layer. Not sure if they are saving it for later or if it is not economical. That's a big "if."

I've heard nothing new on the Jordan.

Remember - this is hearsay, so I don't represent this as fact.

I've heard some big numbers thrown around in rumors as to potential oil production from deep wells. With each passing day, I'm beginning to doubt the gusher concept. Not that there's nothing down there, just not a game changer. But I hope to be wrong on that preliminary conclusion.

Anonymous said...

Wonder why its taking so long to publish the production? A Cotton Valley gas well is pretty much a given. If this is just a gas well why the delay?

Anonymous said...

Anybody heard of a recent deep oil discovery in Nacogdoches County?

Robert Hutchinson said...

Re: Nacogdoches, all I've heard is rumors. Nothing of substance yet.

Robert Hutchinson said...

Re: Nacogdoches, all I've heard is rumors. Nothing of substance yet.