Haynesville Shale

EOG Resources - Haynesville Shale Update

EOG Resources Inc. (EOG) held its third quarter earnings conference call on November 9, 2009 and discussed the Haynesville Shale. EOG Resources indicated that the bulk of its natural gas production growth would come from its Haynesville Shale properties in 2010.

Haynesville Shale Acquisition

“We recently consummated a Haynesville acreage transaction in Nacogdoches County, Texas. EOG acquired approximately 50,000 acres (37,500 net) of Haynesville deep rise.”

Total Acreage

“We now have 153,000 net Haynesville acres, but the location of our acreage is more important than the total number. Our acreage is concentrated primarily in two areas, one portion is in the Louisiana’s DeSoto Parish…Remainder of the acreage is primarily in Nacogdoches and San Augustine Counties in East Texas.”

Haynesville Shale 2010 Capital Plans

“We plan to run 10 Haynesville rigs in 2010 and increase our Haynesville net gas production from the current 40 million cubic feet a day to 200 million cubic feet a day by year-end 2010. The Haynesville will be the primary driver of our 2010 North American gas production increase.”

Source: Seeking Alpha

Devon Energy - Haynesville Shale Update

Devon Energy (DVN) reported third quarter earnings and discussed the Haynesville Shale during its conference call held on November 4, 2009. The company has 570,000 net acres under lease in the Haynesville Shale, and has identified at least 1000 locations.

Recent Haynesville Shale Completion

“The Kardell 1H achieved an average continuous 24-hour flow rate of 30.7 million cubic feet per day. We believe that this is the highest IP rate of any Haynesville Shale well ever drilled. The well was drilled to a vertical depth of 13,850 feet with a horizontal section of 4,500 feet.”

2010 Capital Plans

“In the fourth quarter, we will ramp-up drilling activity in the Haynesville to a five-rig program for most of 2010. This additional activity combined with our non-operated drilling activity will enable us to begin securing our term acreage in the southern portion of the play. We estimate that about 105 wells will need to be drilled over the next two years for us to adequately secure the acreage we are de-risking in the southern portion of the Haynesville.”

Haynesville Shale EUR’s

“It’s a little bit hard to say what the EUR expectations are. We think up in the Carthage area, we’re probably on the 5 to 6 Bcf per well range, probably 5.5 to 6 realistically.”

Source: Seeking Alpha

EXCO Resources - Haynesville Shale Update

EXCO Resources (XCO) discussed the Haynesville Shale during its third quarter earnings conference call held on November 4, 2009. The company has 44,000 net acres under lease and is trying to add up to 15,000 acres to its holdings.

EXCO Resources is increasing its rig count in the Haynesville Shale to 14 in 2010, and plans on drilling 125 horizontal wells in the Haynesville Shale in 2010. Eighteen wells are currently producing, and 9 well completions are expected in the fourth quarter of 2009, and 24 well completions are expected in the first quarter of 2010.  EXCO Resources was producing 40.7 million cubic feet per day of net production as of 10/16/2009.

Haynesville Shale Rig Count

“We had four rigs running at the end of the summer. We have just increased it to 10. I think the tenth one went to work last week.”

Reserves

“The other thing that we’re doing is trying to figure out exactly how to book these reserves as we drill them. Our engineers have been working towards making sure we do it conservatively enough for the 10-K. Because these are big wells in the Haynesville. And making sure we book these right now and not over book them is something that we’re very interested in.”

Midstream Assets

“We’re very convinced that it's a strategic thing for us to be involved in midstream operations to support our E&P in the Haynesville shale. We've been very active in this arena. Our throughput on our midstream is actually over $0.5 billion a day.”

Source: Seeking Alpha

St. Mary Land & Exploration - Haynesville Shale Update

St. Mary Land & Exploration Company (SM) recently updated its operations in the Haynesville shale. The company has 50,000 net acres under lease, with 10,000 acres in Louisiana and 40,000 acres in Texas.

St. Mary Land & Exploration Company just completed its first vertical well in the Haynesville Shale. The USA Bland Lake #1 had a seven-day average production rate of 1.9 million cubic feet equivalent per day. (MMCFEPD). The well is located in San Augustine County, Texas.

St. Mary Land & Exploration is currently drilling a second vertical well in the Haynesville Shale. The Blackstone PB #1 is in Shelby County, Texas. St. Mary Land & Exploration has a 100% working interest in both wells.

Devon Energy Reports Monster Well In Haynesville Shale

Devon Energy Corporation (DVN) reported a successful well completion on its acreage in the Haynesville Shale. Devon Energy Corporation reported that the Kardell Gas Unit 1H had an average 24-hour initial production rate of approximately 30.7 million cubic feet (Mmcf) of natural gas equivalent per day.

The well was drilled to a depth of 18,000 feet and was completed using a lateral of 4500 feet. The well is located in San Augustine County, Texas. Devon Energy has 570,000 net acres in the Haynesville Shale in East Texas and North Louisiana.

Southwestern Energy Company - Haynesville Shale Update

Southwestern Energy Company (SWN) discussed its operations in the Haynesville Shale during its third quarter earnings conference call held on October 30, 2009. The company has drilled six horizontal wells into the Haynesville Shale in its joint venture. Three have been completed, one is being tested, one is awaiting completion and one is being drilled.

Haynesville Shale Production

“Our total production from the Haynesville is currently approximately 34.7 million cubic feet per day gross or 10.2 million cubic feet per day net.”

Haynesville Shale Well Cost

“As far as the well costs, our initial wells were well over $10 million. The last two are going to be in the $9 million to $10 million range. And we think we can get around $9 million wells.”

Source: Seeking Alpha

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Cabot Oil and Gas Completes Haynesville Shale Well

Cabot Oil & Gas Corp. (COG) discussed its acreage in the Haynesville Shale during its third quarter earnings conference call. Cabot Oil and Gas just completed its first well in the Haynesville Shale, and reported an initial 24-hour production rate of 21 million cubic feet (mmcf) per day. The well was drilled with a 3400-foot lateral and a 14 stage hydraulic fracturing operation.

Potential of Haynesville Shale for Cabot Oil and Gas

“Cabot controls 61,000 gross acres, 32,000 net acres over the Haynesville shale area. We think we have anywhere between 150 to 250 gross locations on this acreage with under risk resource potential between 750 Bcf to 1 TCF plus.”

2010 Capital Plans

“Our early 2010 plans approved by our Board yesterday include five Haynesville shale wells.”

“With the recent positive results from our first horizontal Haynesville shale well, we will probably rethink our capital allocation in this area with an eye towards expanding our Haynesville exposure.”

Well Costs

“On the Haynesville well, we were about $10 million with that 14 stage frac.” Source: Seeking Alpha

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Petrohawk Energy Discusses Haynesville Shale

Petrohawk Energy (HK) made the following comments on its properties in the Eagle Ford Shale during its second quarter of 2009 conference call held on August 5, 2009.

Operations

“In the Haynesville, we averaged operating ten horizontal rigs, drilled 13 operated wells and 19 non-operated wells during the quarter and increased production in the field, 63% from 114 million a day to 186 million a day.”

Drilling Efficiencies

“We continue to see improved efficiency with both the drilling and completion of our Haynesville wells. Some of the techniques employed during the drilling operation were the use of rotary steerable drilling systems, shorter curves by using more aggressive bottom haul assemblies, which have decreased the footage necessary to drill the curve.” ___________________________________________________________________

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GMX Resources Reports Two Haynesville Shale Completions

GMX Resources (GMXR) announced the completion of two horizontal wells in the Haynesville Shale.

The Verhalen B 1H well was completed using a 15 stage hydraulic fracturing operation and a 5,270-foot lateral. The well produced an average of 5.7 million cubic feet (MMCF) of gas per day during its first 30 days of operation.

The Holt 1H well was completed using a 12 stage hydraulic fracturing operation and a 4,900-foot lateral. The well also produced an average of 5.7 MMCF of gas per day during its first 30 days of operation.

GMX Resources said that the initial production rates are consistent with estimated ultimate recoveries (EUR) of 5.4 to 6.5 billion cubic feet equivalent (Bcfe) per well in the Haynesville Shale.

The company is currently drilling the Verhalen C 1H well, and expects it to be completed in October 2009. This well is expected to cost less than $7 million, and the company has succeeded in reducing its costs down to $6.5 million per well for drilling and completion costs if a Haynesville Shale well. ___________________________________________________________________

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Goodrich Petroleum Reports Six Haynesville Shale Completions

Goodrich Petroleum Corporation (GDP) released an operational update on its properties in the Haynesville Shale, including completion data on six wells.

Bethany-Longstreet Field (Louisiana)

The Johnson 10H-1 had a 24-hour initial production rate of 17.0 million cubic feet (MMCF) per day, and the Dixie 31H-1 had a 24-hour initial production rate of 14.4 MMCF per day. Chesapeake Energy (CHK) operated both wells.

Goodrich Petroleum Corporation is currently completing the Hunsicker 13H-1, the Caddo Parish 30H-1, and the Plants 26H-1.

Greenwood-Waskom Field (Louisiana)

The Trosper 2H-1 had a 24-hour initial production rate of 11.7 MMCF per day.
 
Longwood Field (Texas)

Goodrich Petroleum Corporation completed the Bohnert 25H-1. The well had a 24-hour initial production rate of 7.5 MMCF per day.

Beckville/Minden Fields (Texas)

Goodrich Petroleum Corporation completed the Swiley 4H which had a 24-hour initial production rate of 7.0 MMCF per day. The Beard-Taylor 1H was also completed at a 24 hour initial production rate of 6.5 MMCF.

Other Goodrich Petroleum Corporation completions are here.