Augusta Energy Resources, LLC had a drilling permit request for this well approved on September 4, 2024. The fact that it was permitted to 18,600 feet caught my eye since there hasn’t been a new vertical well permit submitted to that depth in Houston County since 2012.
It also was interesting that there was no P-16 form submitted with the permit request. The P-16 form shows the unit acreage allocation among the involved mineral owners, The only reference to mineral owners was shown on the well location plat, which made reference to a Drake Exploration lease that was executed by Bobby and Jo Ann Yancey on April 26, 2024. According to TexasFile, There have been no leases or lease memos filed in Houston County by Drake Exploration through August 30, 2024.
Augusta Energy Resources, LLC was first filed in Texas on January 11, 2024. This was their first drilling permit submission. Augusta is associated with New Auburn Energy Management which is sort of an “odd jobs” operation within the O&G industry.
Enverus reported that the well was spudded on September 20, utilizing Independence Contract Drilling Rig 301. That rig was previously located at Bethel in Anderson County, where it had been drilling injection wells for the gas storage facility being developed there. Comstock previously owned the Bethel gas treatment plant (now owned by Quantum Capital Solutions as part of their joint venture with Comstock) and has stated that they intend to store gas at this new facility.
The Bobby Yancey 1 well is located in the G Greenwood A-37 Survey in Houston County. This is about ten miles northeast of Comstock’s lease area in Leon County.
Based on this information, I think it is likely that this is a “stealth” test well being drilled for Comstock as they look to possibly expand their Lower Bossier/Haynesville play to the northeast.
5 Likes
This area was part of a 500 plus Square Mile 3-D shoot that was done about 2010-2012 by PGS for several companies, Anadarko, EOG, Chesapeake and more. It was done in 3 separate phases due to it’s size. Basically the northwest part of Houston County, Texas.
This well is located on a 1,142 Surface acre tract on land north of Houston County Lake a few miles. They can always decide to go horizontal in some formation or formations in the future. No drilling test has been done this deep near this area.
What is a “stealth” test well?
It is a vertical well specifically drilled to collect data for an entity that is evaluating an area for a possible drilling program. Based on the findings from the data, that entity may choose to proceed with a leasing program. Keeping its identity secret can help with minimizing leasing costs.
2 Likes
I was told that there is a “gate guard” at the location. Most likely there is more companies involved in this well test.
I drove down to Houston County to check out this well yesterday. Unfortunately, the rig is located about a half mile from the road behind some trees, so the derrick is about all you can see. The gate guard has a pretty slick set up. Instead of a trailer, he has a pretty fancy RV with a large water tank connected to it. Pretty clear that he was planning on a long stay.
The spud date was October 9, so the rig has been in operation for seven weeks now. I’m sure lots of testing is being done.
The rig is Independence Contract Drilling Rig 301. Here is some info about it:
https://www.icdrilling.com/wp-content/uploads/2021/06/SHALEDRILLER-301.pdf
1,500 HP rig fully capable of drilling deep horizontal wells. The well permit is only for a 40-acre unit, which isn’t allowable for a producing well. If the testing is positive, I expect there will be a permit amendment changing this to a deep horizontal well. If the testing doesn’t show what they want, then they will close things down and move on.
Now, the big question…who is the E&P company behind this test well?
My initial hunch was that this is a Comstock test well, as they look to extend their Western Haynesville program to the northeast from Robertson and Leon Counties. However, if it is true that EOG has begun leasing in this area, then this could be an EOG test well. It certainly fits the way they typically approach a new opportunity.
If a producing well is completed at some future date, we will finally get an answer.
1 Like
There have been several shallower wells drilled north west of this Yancy well in the last couple of year’s in Houston as well as Anderson, Leon & Freestone Counties. Probably looking for oil primarily maybe. So my idea is that it is not just the Gas Play of the Western Comstock Play. Other companies are involved in exploration as well I figure.
Maybe? Probably? Primarily? So which one is it MO?
1 Like
Choose or guess and suit yourself!
Supposedly the well has reached total depth and is being cored. The leasing in the area has increased in the past few days. Sources say that it is not a Comstock Well but is probably EOG.
I think you may be right. In addition, I’m beginning to believe that the 50,000+ acres leased in Cherokee County by Key Exploration and East Texas Energy is EOG. I remembered a few days ago that Key Exploration did some leasing for EOG in Anderson and Cherokee Counties back in 2013 so they have some history of working together.
Key wrote 386 two-year seismic options covering more than 53,000 gross acres back in 2021 and early 2022. 90% of those options were exercised, converting the options to leases. Obviously the seismic work, the land work, and the bonuses cost a lot of money, and I don’t think there are many companies willing to do that.
I initially thought it was Comstock as the lease area essentially extends the southwest to northeast trend of their Lower Bossier/Haynesville project, but this big upfront commitment of money along with a stealth test well that will probably be converted to a horizontal producing well sounds like the way EOG operates in the initial stages of a new project.
I’ll be looking for a W-1 amendment filing regarding the Yancey well.
1 Like
Didn’t think you would know the answer.
I didn’t know you could think!
The northwest part of Houston County had a 500 plus square mile 3D program conducted in about 2011-2012 by PGS. Anadarko shot 4 separate 2D lines about 6 months prior to the 3D’s. Anadarko, Chesapeake, Devon & EOG were part of that PGS 3D shoot. So the 3D data for this area is available. Regardless of whom it is, it is being done.
1 Like