PetroQuest Energy, Inc. Q1 2008 Earnings Call Transcript

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2008-05-21 09:49:26.0

Tags: PetroQuest Energy Inc.

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Your first question is from the line of Joe Allman with JPMorgan.

Joe Allman JPMorgan

Hi. Good morning, guys.

Charles Goodson

Good morning, Joe.

Joe Allman JPMorgan

Hey, Charlie, in terms of – I think you said on that one horizontal well in the Woodford, I think you said the length of the lateral was – I think you said 4,600 feet, is that right?

Charles Goodson

Yes.

Joe Allman JPMorgan

Okay. And then could you give us the length of the laterals on the other two, and then also what are your opportunities to improve efficiencies in the Woodford?

Charles Goodson

Well the last two that I mentioned that were flowing at the rates of 4.6 million and 6.3 million, which is our ore one and two, those laterals lengths are 2,700 feet, and our laterals, Joe, are dependent on geology and faulting. If we can drill unencumbered we'll drill it out to 4,000 to 5,000 feet. As a matter of fact, our last lateral that we just finished in the last day or so was 4,100 feet, so you are going to see them all over as – but as we gain more and more 3D over the area, we are going to lay out more and more long laterals.

As far as efficiencies, you are going to see our cost from the southwestern part of the trend to the northeastern part of the trend, we are certainly are going to have higher cost on the southwestern side than the north eastern side, it's a little shallower and easier drilling, but we are seeing as we have gone from one rig to three rigs, our efficiencies are getting better and better. We are still sticking with the 4.2 million to 4.7 million per completed well, and we certainly are trying to drive cost down with those efficiencies.

Joe Allman JPMorgan

Okay. That's helpful. And are you thinking about doing things like dual completions or anything like that?

Charles Goodson

We are looking at everything that's been tried and not only to Woodford, but in all these trends, and we think we are getting access to that data. Anything that we feel like can improve our efficiencies and our EURs in these wells we are going to – we'll eventually do.

Joe Allman JPMorgan

Okay. That’s helpful. And then just in general, what are you seeing in – what are the most recent trends in terms of drilling and completion costs in your different areas?

 

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