Pioneer Natural Resources (PXD) reported earnings for the second quarter of 2010 and issued an operations update on its activities in the Barnett Shale. The company is acquiring acreage in the Barnett Shale, and now has 43,000 net acres under lease in the Barnett Shale combo area to the north of the traditional play.
Pioneer Natural Resources estimates that it has 400 drilling locations on its acreage and will spud the first well in August 2010. The company expects to drill eight wells by the end of 2010, and will have four rigs operating in the Barnett Shale combo play in 2011.
Pioneer Natural Resources estimates that wells here will earn a pretax rate of return of 45%. This pretax rate of return assumes that completed well costs will be $2.8 million, and have an estimated ultimate recovery (EUR) of 320,000 barrels oil equivalent per well.
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