El Paso (EP) has 20,000 net acres prospective for the Haynesville Shale that are located outside of the Holly area in Louisiana. The company disclosed the following operational and financial details on wells here.
Non Holly Overview
Haynesville Shale wells in the Non Holly area are typically drilled to a depth from 11,000 to 12,500 feet with a horizontal lateral of 4,300 to 4,600 feet. The average well costs from $8.7 million to $9.3 million and has an estimated ultimate recovery ranging from 5 to 6 Bcfe.
Non Holly wells drilled by El Paso have an initial production rate from 9 to 19 million cubic feet of natural gas equivalents per day and average between 6 and 15 million cubic feet of natural gas equivalents during the first thirty days of production.
El Paso estimates that wells here have an internal rate of return from 5% to 15% at prices of $4.00 per MMBtu for natural gas and $80 per barrel for oil. Finding and development costs for Non Holly wells range between $1.80 and $2.35 per Mcfe.
