EnCana Is In Land Retention Mode, But Testing Gas Factories

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In their March Analyst Day Presentation, EnCana mentioned their “Gas Factory“ approach to future Haynesville operations.  They brought this up again during their 2Q2010 Earnings Call.  Although EnCana is focusing their drilling operations on land retention, they are in the midst of their first “gas factory” test.  That being said, I want to take a look at what gas factories are, and what data is available in Drillinginfo.

Gas factories are multiple wells being tightly spaced, drilled from a single pad and produced with a single pipeline connection.  They are 4,000’ laterals with 660’ downhole spacing.  This is a way to improve recovery factor and minimize drill complete and tie-in times as well as cost.  I imagine they have similar benefits to simulfrac operations used by other operators in other shales.  Below is the graphic from that presentation.

EnCana Is In Land Retention Mode, But Testing Gas Factories

According to the earnings call, the first gas factory is located in De Soto Parish, LA.  Below is what I found in the Drillinginfo database.  This area is North De Soto Parish.  The pink dots are bottomholes and the blue dots are surface holes.

EnCana Is In Land Retention Mode, But Testing Gas Factories

Gas factories are easily spotted using Drillinginfo.  When production is available for this gas factory, DI-Energy Strategy Partners will be on top of it.  We will also include analysis into the DI-ESP Unconventional Platform when it becomes applicable and will be keeping tabs of current activity in the DI Haynesville Unconventional Update.

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Justin Birmingham

Justin Birmingham is a Research Analyst at Drillinginfo. He creates proprietary research studies, works with statistical models and manages datasets for the DI Analytics team. Justin earned his Bachelor of Science from Texas State University – San Marcos.