Barnett Shale

Devon Energy Increases Barnett Shale Capital Budget For 2011

Devon Energy (DVN) announced a $1 billion increase in the company’s exploration and production capital budget for 2011, with some of the capital allocated for the development of the Barnett Shale.

Devon Energy now estimates that it would spend between $5.5 billion and $5.9 billion in 2011, compared to the previous range of $4.5 billion to $4.9 billion.

Devon Energy plans to spend $1.1 billion towards the development of the Barnett Shale and will drill 375 wells here in 2011.  The previous capital plan called for the drilling of 325 wells.  The company plans to focus on wells in Wise and Johnson counties, where the acreage contains high amounts of natural gas liquids.

Devon Energy estimates that it would exit 2011 with Barnett Shale production of 1.3 billion cubic feet of natural gas equivalents per day, up from the previous production estimate of 1.2 billion cubic feet of natural gas equivalents per day.

Pioneer Natural Resources - Barnett Shale Combo Play - Q1 2011 Update

Pioneer Natural Resources (PXD) updated the company’s first quarter of 2011 operations in the Barnett Shale Combo play in Texas.  The company has 70,000 net acres under lease and approximately 600 drilling locations.

Pioneer Natural Resources started drilling here in late 2010, and is operating two rigs in the play.  The company has drilled 24 wells, completed ten and is producing from five. 

Pioneer Natural Resources reported that the last three wells completed in the Barnett Shale combo play had average production rates of 356 barrels of oil equivalent (BOE) per day during the first five days of production.  This production included 155 barrels of oil and 854,000 cubic feet of natural gas per day.

Pioneer Natural Resources plans total drilling capital spending of $1.6 billion in 2011, and has allocated $170 million for the Barnett Shale Combo play.