Ark-La-Tex Scout | PLS
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Regional Oil & Gas Intelligence April 13, 2017 ARK-LA-TEX SCOUT Serving the local market with drilling activity, permits & deals for sale Volume 05, No. 05 Indigo Minerals dominates Haynesville completions Regional Activity (State Data) Yorktown Partners-backed Indigo Indigo holds 97,350 net acres in the Permits Issued (03/20/17 - 04/10/17) Minerals is among the private players Haynesville, according to its website. Compls Permits that have been a force in the Haynesville Just last December, the company was Arkansas 26 3 over the last year. The company delivered revealed to be the buyer of 78,000 net North Louisiana 43 42 this issue’s best well and six of the top 10, competing with Best well flows ~22.0 MMcf/d, while East Texas (RRC 5) 3 8 six average 18.1 MMcf/d. East Texas (RRC 6) 16 37 public peers Comstock and TOTAL 88 90 Chesapeake. Drilled in DeSoto Parish, acres in the play from Chesapeake. Most Active Operators by Permits Louisiana, the DeSoto OG 13-12-1 HC Aside from the Haynesville, Indigo’s ➊ Indigo Minerals LLC 13 #2-Alt flowed 21.6 MMcf/d on a 22/64- two other primary targets are the Vaughn 29 ➋ XTO Energy Total 9 in. choke at Canadian Bayou field. This horizon of the Cotton Valley at Holly ➌ Sheridan Production 7 well’s lateral was 9,250 ft. The six wells field (84,884 net acres) and the Bossier had an average IP of 18.1 MMcf/d. (75,000 net acres). Permits by Formation (by Last Scout) Formation 04/13 03/23 03/02 Vine plans 44-well program this year as it files for IPO Haynesville 38 30 21 In the latest signal that the Haynesville Louisiana. The Cloyce Clark 19 #1-3Alt Cotton Valley 10 10 5 is back, consistently strong player Vine averaged 12.0 MMcf/d on a 10/64-in. Pettit 8 3 3 Resources filed for IPO this week, pricing choke. Laterals average ~5,000 ft. Vine Wilcox 5 3 2 the offering at $500 million. Vine is the has delivered wells at 12.0-18.0 MMcf/d Travis Peak 4 7 2 first of a trio of active private operators— over the last year. Barnett 2 10 – Vine entered the Haynesville in 2014 Holt Bryant 2 2 2 Has grown volumes 48%, brought through the acquisition of 107,000 net 47 wells online since Shell buy. Fayetteville 2 – 5 acres from Shell and has since brought 47 Fredericksburg 2 – – the other two being Indigo Minerals and wells online across Red River, DeSoto and Other Formations 17 11 33 Covey Park—to go public. In this issue, Sabine parishes. Vine said in its S-1 filing TOTAL 90 76 73 the Blackstone Group-backed company that it achieved 48% CAGR from 3Q15 to Sources: AOGC, SONRIS & TXRRC logged three Haynesville completions 4Q16. For full-year 2016, Vine averaged Active Rigs Running (Baker Hughes) 55 at Gahagan field in Red River Parish, 218 MMcf/d. Continues On Pg 12 Top 15 Vine O&G North Louisiana Haynesville Wells DEALS FOR SALE Compl Parish Well Name Field Date TD ~Lat MCFD CLAIBORNE PH., LA PROPERTY 28-Active Wells. 27-PDNP. 124-PUD. Red River Westdale RX 29-32HC #001-Alt Red River-Bull Bayou 06/26/16 20,395 7,946 18,100 OAKS & E. HAYNESVILLE FIELDS Red River Westdale RX 29-32HC #002-Alt Red River-Bull Bayou 06/26/16 20,550 8,058 18,000 ~9,000-Net Acres. PP DeSoto Briarwood 5-32HC #1-Alt Red River-Bull Bayou 06/18/16 19,668 7,199 17,800 HORIZONTAL COTTON VALLEY PUD Mostly 100% OPERATED WI DeSoto Briarwood 5-32HC #2-Alt Red River-Bull Bayou 06/17/16 19,781 7,306 17,600 Gross Production: >500 BOED ~400 Red River Rex Young 29 H #2-Alt Red River-Bull Bayou 06/19/16 16,926 4,512 15,325 Net Production: ~400 BOED BOED Red River Westdale RX 29H #1-Alt Red River-Bull Bayou 06/26/16 17,353 5,027 15,100 Net Proved Reserves: ~15.7 MMBOE PP 9050DV/RE Red River George Lormand 32H #1-Alt Red River-Bull Bayou 06/17/16 17,442 5,009 15,100 Red River George Lormand 32H #2-Alt Red River-Bull Bayou 06/17/16 17,396 4,983 15,100 NORTH LOUISIANA NONOP SALE Sabine James Hall 2-35HC #1-Alt Pleasant Hill 08/31/16 19,136 7,002 14,000 26-Wells. 3,235-Net Acres. 19-HBP Units. HAYNESVILLE, CV, HOSSTON Red River Jackson D Jr 35-26 HC #1-Alt Bracky Branch 10/15/16 18,601 6,081 12,512 Bienville, Caddo, DeSoto & Red River Red River Jackson Davis Jr 2H #2-Alt Bracky Branch 10/14/16 17,799 5,281 12,300 NonOperated WI Available PP Red River Jackson Davis Jr 35H #1-Alt Bracky Branch 10/15/16 17,625 5,098 12,150 Recent Net Production: ~1,750 MCFD Net Proved Reserves: ~100 BCFE ~1,750 Sabine Olympia Min 1-36HC #1-Alt Bayou San Miguel 12/16/16 18,143 5,874 12,100 3-Recent Permits; AFE Long Laterals MCFD DeSoto Advanced L & T 11 #2-Alt Mansfield 11/13/16 16,890 4,719 12,100 11-ReFracs: $900,000-$2,800,000 Each DeSoto Nabors Prop 11 #1-Alt Mansfield 11/10/16 17,155 5,034 12,100 Post ReFracs: 40-75% of Original IP PP 9051DV/RE Source: Texas Railroad Commission Legend ⊞ Field/Formation ' Oil * Gas Õ CBM 9 Plugged Oil % Plugged Gas ARK-LA-TEX 2 ª Dry Hole 6 Injection ° Water Supply O Observation 8 SWD è Service 55 Rigs Running / 90 Permits Issued Rig Count Provided by Baker Hughes ARKANSAS Source: AOGC Camterra Resources filed Pg County BHI State a permit for B-44 field in Rigs Permits Sebastian County, Ark. 6 Cleburne – – See page 6. 6 Columbia – – 6 Conway – – 6 Faulkner – – ARKANSAS Rig 6 Sebastian – 1 01 Running Tanos Exploration filed Permits 7 Van Buren – – a recompletion permit 03 Issued 7 White 1 2 for Bald Prairie field in TOTALS 1 3 Robertson County, Texas. See page 13. Sklar Exploration filed SELLING NONCORE a permit for Castor field in Bienville Parish, La. ASSETS IN THIS REGION? See page 8. Let PLS divestment arm monetize those assets and maximize the sale price! ETX (RRC 6) Rigs ETX (RRC 5) 20 Running N. LOUISIANA Permits Rigs Issued Rigs EAST TEXAS (RRC 5) Source: TXRRC 02 Running 37 32 Running Permits Permits Issued Issued BHI State 08 42 Pg County Rigs Permits 13 Falls – 1 – Henderson 2 – 13 Johnson – 1 13 Leon – 2 Denbury filed a permit 13 Limestone – – Covey Park Resources for Delhi field in Richland filed a permit for Parish, La. See page 12. 13 Robertson – 2 Carthage field in Rusk 13 Tarrant – 2 County, Texas. See page 16. TOTALS 2 8 NORTH LOUISIANA Source: SONRIS BHI State EAST TEXAS (RRC 6) Source: TXRRC Pg Parish Rigs Permits Regional Scouts 8 Avoyelles – 1 Pg County BHI State Rigs Permits 8 Bienville – 1 The Ark-La-Tex Scout, published 14 Angelina 1 3 8 Bossier – 2 every three weeks, includes stories and graphics highlighting local drilling 14 Cass – – 10 Caddo 1 3 activity, discoveries, new developments 14 Cherokee 4 1 10 Claiborne – 1 plus stats on drilling permits, completions 14 Gregg – 4 10 Concordia – 1 and P&A activity for Arkansas, North 14 Harrison 2 1 10 DeSoto 19 21 Louisiana and East Texas (RRC 5 & 6). 14 Houston 1 – 11 Franklin – 1 PLS Inc. 14 Marion – 1 11 Grant – 4 One Riverway, Suite 2500 14 Nacogdoches 2 3 11 Jackson 1 2 Houston, Texas 77056 16 Panola 1 11 12 LaSalle – 1 Postmaster: Send address changes to PLS Inc. 16 Rusk 2 6 12 Lincoln 6 – 713-650-1212 (Main) / 713-658-1922 (Fax) 16 San Augustine 6 5 12 Red River 5 – © Copyright 2017 by PLS Inc. 16 Shelby – 1 12 Richland – 1 All rights reserved. No part of this document 16 Smith 1 1 12 Sabine – 3 may be reproduced or transmitted in any 16 Upshur – – 12 Winn – – form or by any means without permission. TOTALS 20 37 TOTALS 32 42 April 13, 2017 (Data thru 04/10/17) 3 DRILLING & EXPLORATION Operator Index Operator Index Regional Highlights Permits Pg(s) Permits Pg(s) • The Ark-La-Tex region has 55 Aethon Energy – 8, 10 James Drilling – 12-13 active rigs—51 gas and four oil— Arbol Resources 1 13 Jamex Inc 1 14 up from 25 YOY. Basa Resources – 14 KJ Energy 1 16 • White County, Arkansas, has a rig BHP Billiton – 7 Linn Operating – 13 running, up from zero YOY. BOG Energy 2 12 Nadel & Gussman Ruston – 12 • The Haynesville has 38 rigs running, up nine since the Bonanza Creek Energy – 6 Neches Exploration 1 14 beginning of the year. BP America 5 14 Petro-Guard Production – 8 • Comstock completed the Breitburn Operating – 14 PetroQuest Energy 3 16 second-best well of this issue. The Brooks Petroleum – 14 QEP Energy – 8 Halsey 14 HZ #1-Alt was drilled at Buffco Production – 14, 16 Range Louisiana Op 2 11 Logansport field in DeSoto Parish. The well flowed 20.5 MMcf/d on a Camterra Resources 1 6 Saddle Operating 2 13 30/64-in. choke. The well sports a Cavalcade Operating – 12 SEECO 2 6-7 4,900-ft lateral. Comstock anticipates CCI East TX Upstream LLC 4 14, 16 Sheridan Production 7 16 40% volume growth this year.