Haynesville Shale

The Haynesville Shale is a rock formation mainly composed of consolidated clay-sized particles deposited and buried in northwest Louisiana and East Texas more than 170 million years ago during the Upper Jurassic age. It is characterized by ultra-low permeability but has a high porosity compared to other shales.

The Haynesville Shale came into prominence in 2008 as a potentially major shale gas resource. Producing natural gas from the Haynesville Shale involves drilling wells from 10,000 feet and to 13,000 feet deep. The formation is deeper in areas nearer the Gulf of Mexico. The Haynesville Shale has recently been estimated to be the largest natural gas field in the contiguous 48 states with an estimated 250 trillion cubic feet of recoverable gas. Production has boomed since late March 2008, creating a number of new millionaires in the Shreveport, Louisiana region.

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Wednesday, August 17, 2011

Select to sell waste water for Haynesville fracking


Under a deal Exco signed with the Mansfield paper plant about three years ago, mill-owner International Paper sends treated wastewater that would otherwise be discharged into the Red River to the exploration company through a 24-inch-diameter underground pipeline.
Exco has used water from the pipeline for its hydraulic fracturing operations in the Holly field in DeSoto Parish, Louisiana, since the pipeline’s completion in 2010.
Mike Chambers, Exco’s vice president of operations in north-east Louisiana, told Upstream the pipeline serves all of Exco’s fracking-water needs in DeSoto Parish.
The 12-mile pipeline pumps 160 barrels of water per minute to the Holly field, more than enough to supply two frac fleets at once, Chambers said.
Select has served as the pipeline’s operator since the pipeline started delivery to Exco early last year. The services company will assume full ownership of the pipeline after a deal with Exco announced last week.
The deal allows the excess water to be marketed to other operators in the Haynesville play, something that Select will likely have an easier time accomplishing than Exco, Chambers said.
“Other companies are more likely to buy water from Select than from Exco, that’s just how oil and gas companies are,” he told Upstream, implying a reluctance on the part of exploration firms to buy from competitors.
Exco will receive a volume credit for water from the paper mill that is sold to other operators over the next two years, so “every barrel someone else uses reduces our cost”, Chambers said.
Exco will also continue to use water from the paper plant in its fracking operations in DeSoto Parish.
Dave Henley, Select’s vice president of business development, told Upstream that his company has already started marketing to other operators, with companies such as Encana and Petrohawk expressing interest so far.
Henley said he expects “to be able to address both those companies” in the next two to three months.

Source: Upstream Online 
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