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Started By
Message
re: Haynesville Shale
Posted on 7/2/08 at 2:05 pm to Tiger JJ
Posted on 7/2/08 at 2:05 pm to Tiger JJ
quote:
If we assume the wells flowing at 5MCF/d, then that's only room for 300 wells. Is that even nearly enough?
That is the initial production rate per well. These wells will probably decline 40-80% in the first year of production. Yes the line should be big enough.
3
Posted on 7/2/08 at 2:35 pm to Oily Tigah
These wells are a lot better than 5 MMCFGD when they first come on line.
Posted on 7/2/08 at 2:43 pm to Oily Tigah
quote:
That is the initial production rate per well. These wells will probably decline 40-80% in the first year of production. Yes the line should be big enough.
I smell sour grapes...
Posted on 7/2/08 at 2:44 pm to Oily Tigah
quote:
That is the initial production rate per well. These wells will probably decline 40-80% in the first year of production. Yes the line should be big enough.
I was being conservative. If they come on at 10 and decline to 5, then it still seems like landowners could take a haircut on price in that first oh-so-valuable year.
Posted on 7/2/08 at 2:44 pm to TigerDog83
CHK has the worst luck with timing of announcements.... when they updated in early June, it was a 400 point down day for the Dow.
Today, all of NG gets slaughtered and pulling what should have been a monster day into just a very good one.
Oh well, lets us look to the future (and I got some profit off the table before 10AM).
I am really looking forward to production guidance at earnings... it is going to blow us away
Today, all of NG gets slaughtered and pulling what should have been a monster day into just a very good one.
Oh well, lets us look to the future (and I got some profit off the table before 10AM).
I am really looking forward to production guidance at earnings... it is going to blow us away
Posted on 7/2/08 at 3:23 pm to Oily Tigah
Oily Tigah,
Yeah, my family's property is on John Kelly Road, off of Highway 9 (just outside Junction City), going towards Summerfield. My source for the info on Claiborne Parish is from an Office of Conservation employee from Homer. He has validated what my father always maintained, and that was that there was oil and natural gas in this area, but no one has ever really gone after it due to past economic considerations.
If you have any news about what is going in these parts, I would appreciate a heads up!
Thanks!
Yeah, my family's property is on John Kelly Road, off of Highway 9 (just outside Junction City), going towards Summerfield. My source for the info on Claiborne Parish is from an Office of Conservation employee from Homer. He has validated what my father always maintained, and that was that there was oil and natural gas in this area, but no one has ever really gone after it due to past economic considerations.
If you have any news about what is going in these parts, I would appreciate a heads up!
Thanks!
This post was edited on 7/2/08 at 3:26 pm
Posted on 7/2/08 at 3:45 pm to Latech80
The problem of pipeline capacity is not relegated solely to the gathering area and/or even the immediate downstream pipe. Aside from gas that will head more toward the St. Louis and Chicago markets, which will also be competing with Rockies gas (REX Pipeline/CIG), there will exist a constraint in getting gas across the Mississippi River into the TGP 500 Leg and TETCO M-1 markets at Kosciesko.....
end result, despite depletion from high IP rates, CHK and others will be mining this for several years, and the volume will continue to climb....just look at the Barnett Shale and you'll see all the new infrastructure has still not kept up with continued E&P development of that play.
I suspect that "into the pipe", we will be looking at $0.75-1.00 basis differential to NYMEX, if not more.....still, more attractive than what Barnett Shale and Mid-Continent gas will trade for ($2.00+ basis).....much of the basis differentials are being driven by absolute price and its effect on transportation fuel rates (which are percentage-based).
end result, despite depletion from high IP rates, CHK and others will be mining this for several years, and the volume will continue to climb....just look at the Barnett Shale and you'll see all the new infrastructure has still not kept up with continued E&P development of that play.
I suspect that "into the pipe", we will be looking at $0.75-1.00 basis differential to NYMEX, if not more.....still, more attractive than what Barnett Shale and Mid-Continent gas will trade for ($2.00+ basis).....much of the basis differentials are being driven by absolute price and its effect on transportation fuel rates (which are percentage-based).
Posted on 7/2/08 at 3:47 pm to TigerStuckinOkieland
Unless there is good competition for wellhead gathering, I suspect wellhead prices to be discounted at least another %0.25-0.50, depending on proximity/location to mainline points and compressor stations.
Posted on 7/2/08 at 3:48 pm to TigerStuckinOkieland
Correction, discount on wellhead is $0.25-0.50; not in percentages......typo!!
Posted on 7/2/08 at 3:50 pm to TigerStuckinOkieland
So 50 cents plus the additional dollar you mentioned? A total of $1.50 or more?
Posted on 7/2/08 at 4:05 pm to Tiger JJ
How much would that $1.50 drop (if any) with natural gas prices?
Posted on 7/2/08 at 4:10 pm to LSU0358
I think he's saying it would be an absolute number and not really relative to spot.
Posted on 7/2/08 at 4:14 pm to Tiger JJ
The people who are going to get hurt by this are the small producers with low volume wells (Greenwood-Waskom field, parts of East Texas, Desoto Parish) who are going to see problems because they can't meet the pressure demands of these high pressure lines and economics don't support compression operations.
This post was edited on 7/2/08 at 4:15 pm
Posted on 7/2/08 at 4:26 pm to Tiger JJ
Anyone, You all know more than I do.
CHK completed a well 300 years from my land (two months ago)I'm in a different section that the well. They drilled 11,472 vertical, then went sideways for another 4,338, which would allow them to get gas from my land if the came this way.
Question:
How can I find out what direction they went?
Thanks
CHK completed a well 300 years from my land (two months ago)I'm in a different section that the well. They drilled 11,472 vertical, then went sideways for another 4,338, which would allow them to get gas from my land if the came this way.
Question:
How can I find out what direction they went?
Thanks
Posted on 7/2/08 at 4:34 pm to TigerDog83
Question to those in the know...
Anyone know what company bought 344 acres in DeSoto from Omni O&G?
LINK
According to the article above, the company paid $1.25M for it. If my math is correct, that is just over $3633/acre. In today's climate, I think that is a sweet investment.
Anyone know what company bought 344 acres in DeSoto from Omni O&G?
LINK
According to the article above, the company paid $1.25M for it. If my math is correct, that is just over $3633/acre. In today's climate, I think that is a sweet investment.
Posted on 7/2/08 at 4:39 pm to bazeball
there is a Desoto group over at gohaynesvilleshale.com...maybe they might know
Posted on 7/2/08 at 4:42 pm to Tiger JJ
quote:
I think he's saying it would be an absolute number and not really relative to spot.
That could be rough if gas drops to the 6-7$ range.
Posted on 7/2/08 at 5:04 pm to LSU0358
Can someone explain the relationship of a well to a section of land? Is there any hard-and-fast rule like:
For each well drilled, the surrounding 640 acres get equal royalties on the production of the well.
Something like that? I don't understand how they know what land the well is actually pulling gas from.
For each well drilled, the surrounding 640 acres get equal royalties on the production of the well.
Something like that? I don't understand how they know what land the well is actually pulling gas from.
Posted on 7/2/08 at 9:09 pm to TigerDog83
Chesapeake Conference Call July 2, 2008 9:00am
Chairman/CEO Aubrey McClendon (Summarized)
• Win-win partnerships between Chesapeake and PXP - Great news for Chesapeake shareholders
• Haynesville 4th largest gas field in the world
• Chesapeake has invested $2.5B in Haynesville
• Play just underway, data suggest 250TCS
• Barnett had 50TCS, which is only 20% of Haynesville –
• Our country should realize how blessed we are as a nation, especially during this time of record high gas prices – can be very helpful in converting to hybrids
• We are so confident because 3.5 M acres defined as core area
• These wells are in a class of their own – calling them “triple X monsters” – likely to get better over time – 8th well, 2 days ago brought on the best so far: 4.5-8.5 BCSE
- claimed that the reason for withholding info was to prevent other companies from receiving a blueprint to their technical practices
- 4 corners work from all the companies that have outlined the shale from their drilling.
- Haynesville Shale will move quickly.
- PXP retains the ability to sell their interest in the HS
- Do not forsee selling hshale--wanted to buy more
- Chesapeake retains first right of refusal
- Ches - 4,000 landmen in the HShale - 1,000 in Barnett, scouring the field.
- Dollars per acre was set by Ches.....$30,000 per acre....paid that price because Ches is going to agressively work HShale to increase the rate of return, deploying PXP capital smartly was the goal.
- Mix of Shale and Sands? Looking for 100% shale...looking for great black shale with the right porosity and organic composition. When you hear the flow rates their will be skepticism but it goes back to the high rates of pressure. The consistency and simplicity is the reason for the dynamic production.
- Flow rates - what are the infrastructure restraints? On top of the game large structure that handles other plays so will be moving fast. We are east so we are closer to the markets...so better pricing. Do the math and HShale could do [better? He kinda trailed off here] because we are closer to the eastern markets.
- Great opportunity for the US to retrofit gas stations and use natural gas instead of foriegn oil.
- Potentially liberating event.
- Here in the HShale we may have 10 years of production.
- 60 rigs operating by 2010
- Play could not be in a better spot.
- Regulatory structure that is favorable
- Great pipeline structure...past many bottlenecks will help this happen much more quickly. Do have to extend supply lines...this helps drive down costs.
- Working through Twin Cities in Shreveport..has put togther an impressive organization..has a network set up..tough sledding to go door to door to buy leases.
• PXP partner – deep LA roots helpful as they develop Haynesville in the decades to come – if you snooze, you lose and Ches is not snoozing - Haynesville will develop similarly to Barnett but also differently – it will be easier than Barnett in some ways
Anythoughts? - LINK
Chairman/CEO Aubrey McClendon (Summarized)
• Win-win partnerships between Chesapeake and PXP - Great news for Chesapeake shareholders
• Haynesville 4th largest gas field in the world
• Chesapeake has invested $2.5B in Haynesville
• Play just underway, data suggest 250TCS
• Barnett had 50TCS, which is only 20% of Haynesville –
• Our country should realize how blessed we are as a nation, especially during this time of record high gas prices – can be very helpful in converting to hybrids
• We are so confident because 3.5 M acres defined as core area
• These wells are in a class of their own – calling them “triple X monsters” – likely to get better over time – 8th well, 2 days ago brought on the best so far: 4.5-8.5 BCSE
- claimed that the reason for withholding info was to prevent other companies from receiving a blueprint to their technical practices
- 4 corners work from all the companies that have outlined the shale from their drilling.
- Haynesville Shale will move quickly.
- PXP retains the ability to sell their interest in the HS
- Do not forsee selling hshale--wanted to buy more
- Chesapeake retains first right of refusal
- Ches - 4,000 landmen in the HShale - 1,000 in Barnett, scouring the field.
- Dollars per acre was set by Ches.....$30,000 per acre....paid that price because Ches is going to agressively work HShale to increase the rate of return, deploying PXP capital smartly was the goal.
- Mix of Shale and Sands? Looking for 100% shale...looking for great black shale with the right porosity and organic composition. When you hear the flow rates their will be skepticism but it goes back to the high rates of pressure. The consistency and simplicity is the reason for the dynamic production.
- Flow rates - what are the infrastructure restraints? On top of the game large structure that handles other plays so will be moving fast. We are east so we are closer to the markets...so better pricing. Do the math and HShale could do [better? He kinda trailed off here] because we are closer to the eastern markets.
- Great opportunity for the US to retrofit gas stations and use natural gas instead of foriegn oil.
- Potentially liberating event.
- Here in the HShale we may have 10 years of production.
- 60 rigs operating by 2010
- Play could not be in a better spot.
- Regulatory structure that is favorable
- Great pipeline structure...past many bottlenecks will help this happen much more quickly. Do have to extend supply lines...this helps drive down costs.
- Working through Twin Cities in Shreveport..has put togther an impressive organization..has a network set up..tough sledding to go door to door to buy leases.
• PXP partner – deep LA roots helpful as they develop Haynesville in the decades to come – if you snooze, you lose and Ches is not snoozing - Haynesville will develop similarly to Barnett but also differently – it will be easier than Barnett in some ways
Anythoughts? - LINK
This post was edited on 7/2/08 at 9:14 pm
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