Bossier gas activity paces East Texas operations

Jan. 29, 2001
Operators plan to turn up the heat this year on Cretaceous and Jurassic exploration and development drilling in the East Texas basin.
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Operators plan to turn up the heat this year on Cretaceous and Jurassic exploration and development drilling in the East Texas basin.

Rig counts in recent weeks show almost 100 rotaries operating in Texas Railroad Commission Dists. 5 and 6 compared with about 60 a year ago. The districts cover all counties from Sabine and Bowie along the Louisiana line to the Fort Worth area and Bosque County on the west.

One operator, Anadarko Petroleum Corp., Houston, said it has 27 rigs drilling for the Jurassic Bossier sands in East Texas and six drilling a similar type play in Jackson Parish, La.

Seven wildcats Anadarko drilled last year in Freestone and Robertson counties encountered commercial gas in Bossier.

After drilling 142 Bossier development wells last year, Anadarko plans 186 development wells and 36 exploratory wells in the play this year. It was spudding its 300th well in the play in mid-January.

Other operators in the growing Bossier play include Cross Timbers Oil Co., Fort Worth; Pioneer Natural Resources Co. and Matador Operating Co. of Dallas; El Paso Production Co. and Marathon Oil Co. of Houston; and Ivanhoe Energy Inc., Calgary.

More than 500 wells are expected to be producing gas from Bossier by year-end 2001, Anadarko said.

Anadarko's program

Anadarko budgeted $535 million for the Bossier play in 2001 (OGJ Online, Jan. 18, 2001).

That works out to a 32% hike in overall spending and a 70% increase in the exploration program. Last year the company boosted its lease position 150% to 250,000 acres in East Texas and North Louisiana, and it has had almost a 100% success rate on Bossier development wells.

Anadarko has the resources, people, and rigs to accomplish its goals, said John Seitz, president and chief operating officer.

The company noted that Bossier wells have long reserve lives and hyperbolic decline rates: They average 3 MMcfd, decline rapidly to slightly less than 1 MMcfd, and produce for many years.

Anadarko's best Bossier well of year 2000, A3 Blair in Dew field, Freestone County, flowed at a record 50 MMcfd with 4,600 psi casing pressure. Another standout, A1 Thigpen, also at Dew, flowed 15.7 MMcfd with 3,400 psi casing pressure. TD is 13,500 ft.

"Each new well provides Anadarko additional confirmation about the Bossier petroleum system model. We analyze each new data point quickly, incorporate the information into our regional models, and then we act on this new information," said Mike Cochran, Anadarko vice president of exploration. "This constant refining of our models gives us an advantage in technical understanding and immediately directs us to new expansion areas and opportunities."

Recent completed well costs have risen to around $1.75 million after declining to $1 million to $1.25 million in early 2000. This relates to higher equipment, service, and crew charges and the cost of frac improvements. Time from spud to spud at each rig is 50-52 days versus 45 days last year due to deeper well depths, weather, crews, and a shortage of trucks.

Anadarko expects to increase Bossier production to a net 90 bcf this year in both states, up from 60 bcf last year and 22 bcf in 1999.

The company recently expanded its East Texas Bossier holdings with the purchase of proved reserves and exploration acreage in Freestone, Robertson, and Leon counties from Broughton Associates Joint Venture and CV Reef Co. for an undisclosed sum. Included were 31,000 acres of leases and 10 MMcfd of net gas production from various interests in 80 wells.

The properties have 17 proved development drilling locations and 32 delineation locations Anadarko plans to drill this year. The acreage also covers some excellent exploratory prospects to be drilled this year.

Transportation, processing

Anadarko is shipping 260 MMcfd of gas through the 500 MMcfd Pinnacle gas pipeline, acquired last month, to the 300 MMcfd Bethel gas treatment plant. It is integrating the pipeline with its existing gathering system.

The company plans to expand the plant this year but had not decided on expansion size by last week. The 2001 budget includes more than $100 million for lease acquisition, expansion and upgrades of gathering lines, and treating facilities.

Of the 260 MMcfd shipped on Pinnacle, roughly 245 MMcfd comes from Anadarko-operated wells. Anadarko estimated net shipments at 180 MMcfd. The company also sells gross volumes of 30 MMcfd to a Koch unit and 15 MMcfd to Lone Star.

Pinnacle consists of 60 miles of large diameter pipe, 40 miles of small diameter laterals and spurs, and a 60 mile fuel redelivery system. The plant removes Bethel carbon dioxide and hydrogen sulfide from the gas.

The East Texas lineup

Here is a summary of other recent East Texas activity:

Cross Timbers, completing acquisition of East Texas and Louisiana properties from Herd Producing Co., Tyler, Tex., in early January, said the deal gives it more than 500 potential drilling locations in Cretaceous Travis Peak and Jurassic Cotton Valley sand and lime and Bossier sand formations. The 2001 budget for the properties was $50 million.

The properties include Farrar, Bald Prairie, Southwest Oletha, and Luna fields in Freestone, Limestone, and Robertson counties, Texas, and Colquitt and Oaks fields in Claiborne and Union parishes, Louisiana.

Pioneer expects to invest $37 million to drill 25 operated and 12 nonoperated wells this year in the Bossier play, where it holds more than 30,000 acres.

Activity has moved from existing producing areas eastward toward Pioneer's acreage position, and the sands being discovered are deeper and cleaner, significantly improving drilling results, Pioneer said.

Pioneer has participated in several Bossier wells with initial rates ranging from 3 to 10 MMcfd and estimated reserves of 3-4 bcf/well.

Ivanhoe agreed to purchase the oil, gas, and mineral rights to 10,000 acres in the Bossier Trend from an unnamed seller for $4.5 million. Ivanhoe also will acquire 2,500 acres. It hoped to begin drilling in second quarter 2001.