Terax Energy completing Barnett shale wells

Feb. 2, 2006
The Mitchell 3-H horizontal well on an 11,300-acre block in the Forth Worth basin of Erath County, Tex. has reached total measured depth of 6,710 ft, reported Terax Energy Inc., Dallas.

By OGJ editors
HOUSTON, Feb. 2 -- The Mitchell 3-H horizontal well on an 11,300-acre block in the Forth Worth basin of Erath County, Tex. has reached total measured depth of 6,710 ft, reported Terax Energy Inc., Dallas.

The 3-H well, which was spudded Dec. 30, 2005, was drilled through the Barnett shale and Ellenburger formations and encountered no water. It is Terax's third well in the Barnett shale play.

Terax has set production casing and plans to fracture-stimulate and complete the well by mid-February pending completion of the Mitchell 1-H and 2-H wells. It plans to bring production of the three wells online early in the first quarter of 2006.

The 3-H well logs indicate 30.1 bcf/sq mile of natural gas in place. This finding is favorably similar to the 27.6 bcf of natural gas in place at the Mitchell 1-H well. Terax said the logs also showed a need to change the horizontal drilling design to avoid several formation stress faults, believed to be consistent with results of aeromagnetic surveys.

Terax plans to move its Unit Drilling Co. rig to a fourth site in Erath County to start drilling the Mitchell 4-H horizontal well by Feb. 6. The 4-H well site is 1/2 mile from the 3-H well.

The 3-H and 4-H wells will be connected to a gathering system Terax is building. Terax has agreed to sell gas to Louis Dryfus Energy Services and expects to tie into the Louis Dreyfus pipeline by mid-February.