American Oil and Gas Reporter - March 2022 - 50

SpecialReport: Haynesville Playmakers
degradation in EURs or well performance.
That allows the IPs to continue to incline
as we move forward, " he says.
The company's actions over the past
few years to strengthen overall operations,
upgrade inventory, improve cost
structure and improve its financial position
laid the foundation for its strategic
entry into the Haynesville, President
and CEO Bill Way told investors in
February. He says the move into the
Haynesville gives Southwestern Energy
a formidable presence in each of the
nation's two premier gas basins: the
Haynesville and Marcellus.
" Our strategic entry into the Haynesville
was well-timed, " Way says. " Since
announcing our first Haynesville transaction
in June, gas fundamentals have
strengthened materially, enhancing the
economic value of the transactions. "
Acquisition Opportunities
For New Century Exploration, a ramp
up in the Haynesville includes weighing
current acquisition opportunities as it embarks
on development in Texas and
Louisiana, says President and Chief Executive
Officer Phil Martin.
The Spring, Tx.-based independent
developed and then sold an Eagle Ford
holding last year, allowing it to refocus
on developing 6,500 acres prospective of
both the Haynesville and Cotton Valley
while contemplating expansion. Under
consideration in late February were a
7,000-acre bolt-on in East Texas and a
25,000-acre acquisition in northern
Louisiana, Martin reveals.
" We have a wealth of opportunity
right now, none of which are done deals
yet, but we are looking to expand, " he
comments.
The company's existing position (1,500
acres in Harrison County, Tx., and 5,000
in Caddo and Bossier parishes in
Louisiana) is held by production, he says.
Of 59 development sites, 31 Cotton
Valley locations can be drilled with laterals
around 5,000 feet and the reminder in
the Haynesville with 5,000-10,000-foot
laterals, Martin says. Two 5,000-foot
Haynesville laterals for refacs were drilled
by basin pioneer Chesapeake Energy in
2008, he points out.
New Century plans to drill and complete
two or three Cotton Valley wells
this summer and two more before the
end of the year, with Haynesville drilling
in Texas expected to kick off before year's
end, Martin says.
The first of the Cotton Valley wellstargeting
the Taylor bench-offsets a development
well the company drilled in
2018 at its Woodlawn Field in Harrison
County. The Duke 1H, with a 5,400foot
lateral, had an IP of 7 MMcf/d and
proved up about 1.1 Bcf of gas per
1,000 feet of lateral, Martin says. Almost
three years later, the well is still producing
1.5 MMcf/d.
The newest Cotton Valley well will
include a 6,000-foot lateral, ample length
for the abrasive sandstone layer, and be
completed in stages of 200-250 feet with
1,500-2,000 pounds of sand per lateral
foot, he says.
" It would be great to drill a 10,000foot
Cotton Valley lateral, but we are
risk averse and do not want to push it, "
Martin says.
The company has had to deal with
longer lead times for production casing,
with drilling contractors indicating they
did not want to talk until New Century
had the pipe in hand, he says.
" We are not large enough to build a
big inventory of pipe, so we are subject
to current supply and demand issues, "
Martin says. " They have not been terrible,
but it has slowed things down. "
The company already is talking to
pipeline companies to secure additional
takeaway in anticipation of a ramp up on
its Louisiana position.
To avoid disposal constraints that beset
the basin a couple of years ago, New
Century has drilled its own saltwater disposal
well and will likely add to disposal
prior to significant development down
the road, Martin says.
Currently self-funded, the company
plans to secure additional capital to accelerate
development plans, he says. Despite
challenges, New Century is in the
right place at the right time, Martin
insists. " This is a great time for our industry, "
he concludes.
r
New Century Exploration is actively assessing acquisition opportunities as it seeks to
expand on its 6,500-acre Haynesville and Cotton Valley leasehold in Texas and Louisiana.
50 THE AMERICAN OIL & GAS REPORTER
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American Oil and Gas Reporter - March 2022

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