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Pipeline would ship Haynesville shale gas

By OGJ editors
HOUSTON, Jan. 28 -- A pipeline company and a producer launched plans to build a 178-mile, 42-in. pipeline in East Texas and Northwest Louisiana to serve the Jurassic Haynesville gas shale play.

Meanwhile, the producer, Chesapeake Energy Corp., Oklahoma City, said the Haynesville has the potential to become the largest producing field in the US.

Chesapeake said its last seven horizontal Haynesville wells averaged 16 MMcfd of gas equivalent on initial production or tests. The two most recent wells tested at more than 22 MMcfd.

The company plans to average 25 rigs in the play in 2009, up from 20 rigs currently.

Energy Transfer Partners LP (ETP), Dallas, and Chesapeake Energy Marketing Inc. plan to lay the Tiger Pipeline from Carthage, Tex., to near Delhi, La. The project will connect to ETP's dual 42-in. pipeline near Carthage and would connect to at least seven interstate pipelines at various points in Louisiana.

Capacity would be at least 1.25 bcfd initially and could be raised to 2 bcfd based on results of an open season.

Chesapeake, largest gas producer in the US, committed a firm 1 bcfd for 15 years to the project, which is to cost $1-1.2 billion and be in service by mid-2011 pending regulatory approvals.

Separately, Cubic Energy Inc., Dallas, accepted a proposal to participate with 2.8% working interest in Chesapeake's Clingman Acres-11H horizontal well in Johnson Branch field, Caddo Parish, La. It is to go to Haynesville shale at 17,000 ft measured depth.

Cubic, which is exploiting several geologic formations, has 12 wells producing in its Johnson Branch acreage, and 10 wells producing in its more southern acreage position of Bethany-Longstreet field in DeSoto Parish.


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