Houston-based Laredo Energy VI LP said July 31 it is making technological strides with its Lower Eagle Ford Shale development drilling program, having completed nine wells in the dry gas window with five more in the completion queue.
Results of the completed wells, located in Webb County, Texas, had lateral lengths ranging from 4,976 ft to 8,576 ft with initial production (IP) rates for some surpassing 12 million cubic feet equivalent per day (MMcfe/d).
“The results establish a low-cost, natural gas development near South Texas sales channels that can effectively supply Gulf Coast industrial demand, LNG and Mexican exports,” Laredo Energy CEO Michael J. Wieland said in a news release. “Initially, this program is expected to be primarily fueled by gas from the Lower Eagle Ford. However, future locations may ultimately include other targets such as the Austin Chalk zone in this stacked pay asset.”
The company reported the Reuthinger 123H and 124H wells, drilled to a true vertical depth subsea (TVDSS) of 12,050 ft on a two-well pad at about 1,000-ft well spacing, had IP of 12.2 Mmcfe/d and 12.1 Mmcfe/d, respectively. Reuthinger 123H had a lateral length of 7,791 ft, while the 124H well had a lateral length of 8,576 ft.
The Reuthinger 15H well, drilled to 12,450 ft TVDSS with a lateral length of 5,376 ft, had an IP of 9.9 MMcfe/d, according to the release.
Drilled to a TVDSS of about 12,100 ft with 1,000-ft well spacing, the Ellen C 13H and 14H wells had restricted IP rates of 12.1 Mmcfe/d and 11.0 Mmcfe/d, respectively.
Another set of wells—Benavidas Family Minerals 15H and 16H—each had IP of 9.6 MMcfe/d with lateral lengths of 5,776 ft. Laredo said the wells were drilled from the same pad at 1,000-ft well spacing to about 11,750 ft TVDSS.
“The Needmore 23H and 24H were also [drilled] on a two-well pad at 1,000’ well spacing to a TVDSS of approximately 10,725’; lateral lengths were 6,976’ and 6,576’, respectively,” the release said. “Initial production rates of 10.7 MMcfe/d and 10.0 MMcfe/d at flowing casing pressures of 5,642 psia and 4,666 psia, respectively, were observed.”
The Ellen C 106H well, one of five wells drilled but awaiting completion, was drilled to a measured depth of 24,001 ft (12,212 ft TVDSS) with about 11,000 ft of lateral, the release said. Laredo said it is the longest measured depth drilled to date by any operator in Webb County.
“We are well on our way to building a full-scale, multi-well pad-driven development program that will provide a basis for strong growth at our company for a decade and more,” Wieland added.
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The company also said it expects to generate substantial free cash flow in 2018, allowing it to initiate a dividend in the first-quarter of 2019.