They are proposing 4 new cross-unit wells in Red River Parish, LA. Drilling in north side of section 25-14-10 and ending in south side of section 36-14-10. They are into exporting LNG and plan to use their recently acquired assets in the Haynesville Shale to feed liquification plant(s). I just read a 2017 article that stated their estimated cost for producing gas in these areas would be under the Henry Hub price.
Article states “We expect our full-cycle cost of production and transport to markets will be approximately $2.25/MMBtu, which represents a significant savings to natural gas we will purchase at Henry Hub and other regional liquidity points,” Gentle said.
I know this has been asked already but....Will combining the two sections cut the royalties in half? In theory the longer wells should produce twice what the (1) single well in that section did/does. What price are the Haynesville Tellurian royalties based on? Henry Hub? Wellhead? Something else?