- As advertised, EXCO drilled only two Haynesville wells in north Louisiana but completed 14, mostly in the Holly field.
- In January, the company also completed its first Mid-Bossier well since 2010, and it is currently flowing 5.3 MMcf/day at 6,700 psi. I had previously guessed that the Mid-Bossier well is Branch Ranch 5, #3, serial #248472.
- All three of the company's Haynesville drilling rigs have moved to the Shelby area of Texas and no more drilling is expected in north Louisiana in 2015.
- EXCO has recompleted six mature Haynesville wells in north LA over the past nine months and seems pleased with the outcome. The company has identified 270 suitable candidates for re-fracking, and the average cost is around $1.8 million. The company didn't give more details on its re-fracking plans for the rest of the year in the release. It will be interesting to see if EXCO will spend more on cheaper, lower return re-fracs and dial back on new drilling later in the year. My guess is that they will stick with the current plan and keep re-fracs in their back pocket for now. I think re-fracks will be a line item on the capital budgets for years to come, though.
- EXCO drilled four Haynesville/Mid-Bossier wells in Texas in the first quarter with plans to drill 17 more and turn 14 to sales in 2015.
- Average well costs in Texas are around $10.8 million, down from $12.8 million a year ago, and that includes more proppant per foot and average lateral lengths greater than 7,000 feet for the newer wells. It was unclear how much of this decrease comes from greater efficiencies or better well design and how much comes from sharing pain of the downturn with suppliers.
- The company is "in the process of evaluating its drilling plans in the Eagle Ford shale for the remainder of 2015." I don't focus much on the EF shale, but my guess is that EXCO didn't end up with primo acreage in the play and it finds it more cost effective to drill $3 million Buda oil wells with its one area rig rather than drill EF wells.
I'll make another post tomorrow(ish) if the conference call reveals anything of note.