Eagle Ford Shale operator Laredo Energy VI LP said early drilling results in the dry natural gas window hold promise for multi-well development for years to come.
The partnership, sponsored by private equity firm Avista Energy Capital, announced encouraging results Tuesday for a handful of wells spud since late last year.
“Laredo’s large and contiguous South Texas leasehold position is ideal for development in the dry gas window of the Eagle Ford Shale, Austin Chalk and other formations,” said CEO Michael J. Wieland. “Following a comprehensive geologic and geophysical review of the company’s leasehold initiated in early 2017, we are confident in our ability to optimally develop this world-class, stacked-pay asset.”
The Houston-based operator’s development program is targeting the Lower Eagle Ford in South Texas at vertical depths of 9,700-12,700 feet, where the formation exhibits “significant over-pressure,” according to management.
Results from four gas wells were detailed for the Needmore 22H, Ellen C 12H, Benavides Family Minerals B 1H and Reuthinger 13H.
Needmore, spud in October, was drilled to a vertical depth of 10,773 feet and a lateral length of 7,277 feet. It was completed in 36 stages using 400,000 pounds/stage of proppant. The well, which began producing in December, tested at 10.8 MMcf/d on a 21/64-inch choke with a flowing casing pressure of 5,138 pounds/square inch atmosphere (psia). Shut-in wellhead pressure was 5,823 psia.
Ellen C, which achieved first production on Jan. 2, tested at 10.4 MMcf/d on a 17/64-inch choke at a pressure of 7,437 psia; shut in pressure was 7,704 psia. The well was drilled to a vertical depth of 12,244 feet with a lateral length of 6,673 feet. It was completed in 33 stages using about 432,000 pounds/stage of proppant.
Benavides achieved first production in March, testing at 14.2 MMcf/d on an 18/64-inch choke at a pressure of 7,867 psia; shut-in wellhead pressure was 8,286 psia. It was drilled to a vertical depth of 12,657 feet with a lateral length of 6,291 feet and completed in 38 stages with about 355,000 pounds/stage of proppant.
Reuthinger, spud in April, is waiting on completion. It was drilled to a subsea vertical depth of 12,400 feet and its completed lateral length is expected to be about 6,300 feet.
“Well results thus far are positive indications that a full-scale, multi-well pad-driven development program in the Lower Eagle Ford will provide a basis for strong growth at Laredo for years to come,” Wieland said. “Further, our asset is supported by our close proximity to export markets and the Gulf Coast industrial and petrochemical complex. As such, we are continuing our one-rig drilling program into the second half of 2018.”
The Eagle Ford lies across the entirety of the company’s 50,500 net leasehold in Webb County. In addition to the Lower Eagle Ford, Laredo’s acreage produces from the Upper Eagle Ford, Austin Chalk, Escondido and Olmos formations. The company currently produces 113 MMcfe/d, of which 33% is from the newly completed Lower Eagle Ford wells.