Barnett Shale

Quicksilver Resources - Barnett Shale

Quicksilver Resources (KWK) reported earnings for the second quarter of 2009, and updated its operations in the Barnett Shale of the Fort Worth Basin. The company has 175,000 net acres under lease and drilled 29 (22.9 net) wells during the quarter. The company also connected 27 (25.2 net) wells to sales.

Although many exploration and production companies are shifting away from the Barnett Shale to other shale plays in North America, Quicksilver Resources defended the Barnett Shale during its second quarter conference call.

“The Barnett continues to be the focus of our development activity. Despite speculation of its demise, the Fort Worth Basin is alive and well and providing increasing opportunities for Quicksilver. The Fort Worth Basin-Barnett is a proven area of low risk, low cost development with readily available infrastructure and access to services,” said Glenn Darden, the CEO of Quicksilver Resources.

Many operators are drilling but not completing wells as they anticipate higher natural gas prices later on in 2009 or 2010, and Quicksilver Resources is no exception.

“We project our inventory of drilled and cased but uncompleted wells in the Barnett to increase to approximately 150 wells by year end.” Costs are also falling, and the management of Quicksilver Resources indicated that year over year, the cost to drill is down 25%. ___________________________________________________________________

Do you use technical analysis to find the proper entry point before you buy a stock? Then Click Here for a free Trend Analysis.

Carrizo Oil and Gas - Barnett Shale

Carrizo Oil and Gas (CRZO) updated its operations in the Barnett Shale when it released its second quarter of 2009 earnings. Carrizo Oil and Gas produced 80 million cubic feet per day of natural gas from its Barnett Shale properties, and has three rigs working in that area.

The company said that it has 39 wells in the Barnett Shale that are drilled and not completed. These wells represent 87 million cubic feet equivalent per day of initial production. The industry has hundreds of wells in this type of status, as operators wait for natural gas prices to recover.

Chip Johnson, the CEO of Carrizo Oil and Gas said “I mean, at some price if we can sell all the gas at $6 NYMEX, which is what the strip is now, I think for 2010, we’d probably produce it.”

Lease prices have also dropped markedly in the Barnett Shale as drilling shifts to other shale plays. “The prices have dropped as low as 3 to 5,000 per acre in areas where they were 20,000 per acre last year… some holdouts in the core that still think they can get 15,000 per acre, but in general it’s dropped off below 10,000.” ___________________________________________________________________

Do you use technical analysis to find the proper entry point before you buy a stock? Then Click Here for a free Trend Analysis.

XTO Energy - Barnett Shale Update

XTO Energy (XTO) updated its drilling operations in the Barnett Shale when it released earnings for the second quarter of 2009. The company has 277,000 net acres under lease, and is running 10 rigs. Production from its Barnett Shale properties averaged 621 million cubic feet equivalent per day.

XTO Energy reported the initial production rates of 9 wells that it completed during the second quarter of 2009 on its acreage in the core area of the Barnett Shale:
 
Gafford C 1H - 5.5 million cubic feet per day (MMCFPD)
Arlington Surber B 2H - 5.1 MMCFPD
Gafford D 1H - 4.6 MMCFPD
Mira Lagos Unit 3H - 4.6 MMCFPD
Britt Unit 12H - 4.5 MMCFPD
Gafford C 4H - 4.3 MMCFPD
Gafford D 4H - 4.2 MMCFPD
Graystone 2H - 4.1 MMCFPD
Mira Lagos Unit 2H - 4.1 MMCFPD

XTO Energy reported the initial production rates of 2 wells that it completed during the second quarter of 2009 on its acreage in the Tier 1 area of the Barnett Shale:
 
Hyles 3H - 2.1 MMCFPD
Hyles 2H - 2.0 MMCFPD ___________________________________________________________________

Do you use technical analysis to find the proper entry point before you buy a stock? Then Click Here for a free Trend Analysis.