Petrohawk Energy (HK) issued an operations update on its oil and gas activities during the third quarter of 2010. The company reported average daily production of 434 million cubic feet of natural gas equivalents from its Haynesville Shale properties, and drilled 102 total wells (29 operated, 73 non operated) during the quarter.
Petrohawk Energy said that well costs in the Haynesville Shale in 2010 would average $10.5 million, and are expected to decrease to $9.8 million in 2011. The company has cut its rig count over the last three months, from 16 at the beginning of the third quarter of 2010, to 12 currently.
Petrohawk Energy drilled and completed the Mendenhall 10H #1 well into the Haynesville Shale in the third quarter of 2010. The Mendenhall 10H #1 well utilized a new design that cut hydraulic fracturing costs by $1 million per well. The well had an initial production rate of 8.4 million cubic feet of natural gas equivalents per day.
Petrohawk Energy also established a $1.9 billion budget for drilling and completion activities in 2011. The company has allocated $900 million of this total for development of the Haynesville Shale.