Pioneer Natural Resources (PXD) reported earnings for the first quarter of 2010, and held a conference call on May 5, 2010, to discuss the results. The company made comments during the call on some of its operations, including the Eagle Ford Shale in Texas.
Pioneer Natural Resources has 300,000 gross acres under lease in the Eagle Ford Shale.
Pioneer Natural Resources reported the completion results of the Chesnutt Gas Unit #1, the company’s fifth well into the Eagle Ford Shale in early May 2010.
“We announced our fifth successful well at Eagle Ford Shale, that's the Chestnut #1. It's shown here on the a map as being central to our acreage, actually between several other wells we drilled. It made about a 14.1 million cubic feet a day in IP and about 255 barrels a day of condensate…It's liquid-rich gas, which is important to the economics of these types of wells in the condensate window. And we pumped a 12-stage frac on this well.”
“We have a couple of wells that are currently drilling with our 2-rig campaign, both in Dewitt and Karnes Counties. And we have a well that's awaiting completion in Live Oak County.”
“In association with a joint venture, our plan would be to aggressively begin increasing the rig count…we have contracted and will have contracted six to seven rigs by the end of this year, going to 10 rigs in 2011 and 14 rigs in 2012.”
“We have some 1,750 locations on the map, ready to drill. We expect still in the neighborhood of 6 BCFE per location. We are, fortunately, in a position where about 70% of those locations are within the liquid-rich window.”
“Yes, it's still running in about a 75% decline rate. So it's matching pretty much to our tight curve. The only well that's not matching our tight curve is our first well. The Sinor because it's only a 3,000-foot lateral. But all of our 4, 500- to 5,000-foot laterals are matching or above our tight curve of six Bcf.”
Source: Seeking Alpha