Experienced Operator is seeking one or more working interest participants (“Investors”) to fund $6.7 million for the drilling of three proved undeveloped infield development wells targeting the Haynesville “A” Sand in the East Haynesville Field, Claiborne Parish, Louisiana.
Operator’s 2022 Development Drilling Program consists of three wells to be drilled initially to the lower “Haynesville A Sand” formation at approximately 9,500 feet. The Haynesville A Sand has produced in excess of 1.7 million barrels of oil and 36 billion cubic feet of gas within the E. Haynesville Field.
The Haynesville in North Louisiana is a sandstone and produces primarily 1200 BTU gas and condensate. The lower Haynesville A sands are over-pressured, laminated and routinely contain 200’ to 400’ of gross interval. Operator anticipates the average Haynesville A Sand will produce 140,000 barrels of oil and 1.3 BCF of gas.
Operator anticipates that two of the wells will have additional behind pipe pay in the Cotton Valley Taylor Sand, and the remaining well will have behind pipe pay in the Smackover. By adding production from these zones in the fourth year of production, then selling all the production at the end of the fifth year, Operator projects that the Investors will realize a total net cash flow of $23.8 million for a $6.7 million investment, for a return on investment of 3.56 to 1.00. Payout is projected in 21 months. Internal rate of return is projected at 75.3%
Operator has focused exclusively on the Haynesville Sand Trend for over 20 years during which time it has drilled over 50 deep wells within the Trend and spent in excess of $150 million in land, drilling, completions, geological and geophysical costs.
- Category : Oil & Gas