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.”
“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.”
“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