EXCO Resources Inc. (XCO) detailed first quarter 2015 operating results April 28. In North Louisiana, 207 million cubic feet equivalent per day (MMcfe/d) was produced; this was a decrease of 52 MMcfe/d, or 20%, from fourth-quarter 2014.
The company drilled two gross (1.7 net) operated horizontal Haynesville wells in Caddo Parish and turned to sales 14 gross (10.5 net) wells, mostly in Desoto Parish’s Holly area.
EXCO’s increase in production compared to the fourth quarter 2014 was primarily the result of completion activities. There were three operated rigs in the area, and they were moved to East Texas’ Shelby area. For the remainder of 2015, four wells will be turned to sales in North Louisiana; they are awaiting completion.
A Bossier Shale test well was turned to sales in January to test the formation’s potential productivity, and it was the first well EXCO drilled in the since 2010. It currently produces about 5.3 MMcf/d. The company said the Bossier could have more than 300 additional gross drilling locations based on a 4,300-foot standard lateral length.
In January in the Haynesville, EXCO completed its sixth refrack stimulation test on mature wells. Production from the first treated well increased-- 1.8 MMcf/d—and the refrack resulted in 2 Bcf of proved reserves for the well at year-end 2014.
The company said it identified more than 270 gross wells that are refrack candidates in North Louisiana and East Texas. Refracks cost about $1.8 million and could vary based on the design and type of treatment.
In East Texas, 45 MMcfe/d was produced. This was a 105% increase from first-quarter 2014.
East Texas is the primary focus of EXCO’s 2015 development program, and the company plans to drill 17 additional gross (7.7 net) operated horizontal wells and turn 14 gross (6.5 net) to sales this year.
The design for the wells in the 2015 program includes more proppant per foot and average lateral lengths longer than 7,000 feet.
There are about 250 undeveloped gross locations in this region based on 880-foot spacing between wells.
In South Texas, 6 Mboe/d was produced, down 8% or 0.5 Mboe/d from first-quarter 2014.
The company drilled 7 gross (1.8 net) operated horizontal wells and turned 15 gross (4.1 net) to sales.
The Eagle Ford was the focus of development, and included 1 gross (0.7 net) Buda well which was drilled and turned to sales. Regarding the rest of the year, the company is evaluating drilling plans, planning to drill and turn to sales 3 gross (2.0 net) wells in the Buda Formation.
The average per-well cost in the Eagle Ford was reduced. Depending on lateral length, it was reduced to between $6 million and $6.9 million.
From spud to rig release, drilling days per well in the play average 10 days currently.
The third central production facility in the Company's core area became operational in the first quarter 2015, and about 40% of gross operated production in the region flows through central production facilities.
A third party is building a pipeline from these central production facilities to an intrastate pipeline in Dilley, Texas. This connection is expected to be operational by the third-quarter 2015.
EXCO closed its first acquisition of wells in the Buda Formation, drilled under its participation agreement with a joint-venture partner in March 2015, which included interests in 3 gross (1.4 net) wells. The acquisition cost $7.6 million, and the acquired interests produce 260 bbl/d on average.
The company completed one gross operated Marcellus well in Northeast Pennsylvania, EXCO added. In the area, 75% of acreage is HBP, the company added.
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