EXCO Resources Q3 2009 Earnings Call Transcript

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2009-11-04 13:44:08.0

Tags: Call Transcript, Pressure, Earnings, Financial Accounting, Finance, Seeking Alpha, Exco Resources Inc.

Question-and-Answer Session

Operator

(Operator's Instructions) Your first question comes from the line of David Heikkinen with Tudor Pickering.

David Heikkinen - Tudor Pickering

Good morning, guys. As you think about the Bossier plans and where you've tested in six counties, how many — can you talk about rates or any details on the vertical tests so far to give us an idea of how that's actually progressing?

Douglas H. Miller


Basically it's vertical so far, but Hal, do you have that?

Harold L. Hickey

Yeah. The rates are very comparable to what we saw on the verticals coming out of the Haynesville. And in fact, on a couple of them that we're producing now, we're seeing a little over 300 MCF a day.

Douglas H. Miller

I will note this, even though we've seen gas for sure drilling down through it, we've seen good gas on the verticals, but I will tell you, the pressures are quite different. So we don't expect any 20 or 30 million a die wells out of that, but we don't know, but I would say right now the pressures are significantly below. Is that right, Mark?

Mark Wilson

It depends on where you are.

Douglas H. Miller

Okay. Where are we?

Mark Wilson

We’re a little bit lower and the — if you look at De Soto parish, they're slightly lower. We're seeing a little bit lower pressures even than that up in Mercado (ph), but in De Soto I wouldn't say it's dramatically different. I mean, it's a little shallower so there's going to be a little lower pressure, but the gradients not dramatically different.

Douglas H. Miller

David I think our guys are excited, especially what we saw in De Soto parish, and after rag couple verticals they're ready to go on a horizontal and I think we got to move rigging in here — when are we going to start rest one?

Mark Wilson

By the end of the year.

David Heikkinen - Tudor Pickering

And as you think about next year you're still allotting one right to the Bossier out of your horizontal program, is that —

Douglas H. Miller

Yes, sir. And the good news about that is all of that is HPB, it's all on existing leases, and most importantly, the land work’s already been done and the pipelines are already in place. So our cost to get to market is going to go down with those.

 

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