Barnett Shale

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.

Carrizo Oil and Gas Sells Barnett Shale Leasehold

Carrizo Oil and Gas (CRZO) reported that the company is selling acreage in Texas that is currently producing from the Barnett Shale formation.

Carrizo Oil and Gas is selling 13,000 acres to KKR Natural Resources for $104 million. The properties have 75 gross or 58.5 net wells with gross production of 15.7 million cubic feet of natural gas equivalents per day (8.3 million on a net basis). Proved reserves total 122.4 Bcfe of which 55% are proved undeveloped.

Carrizo Oil and Gas said that the proceeds will be used to reduce borrowings on its credit line and help fund its 2011 capital budget.

Quicksilver Resources Announces 2011 Barnett Shale Capital Budget

Quicksilver Resources (KWK) announced that the company has approved spending $455 million in total capital in 2011, including $280 million for exploration and development activities.  The company plans substantial activity in the Barnett Shale in Texas.

Quicksilver Resources plans to operate two rigs in 2011 to drill and complete 40 gross, or 33 net wells in the Barnett Shale.  The company also plans to complete 45 gross, or 43 net wells from its inventory of uncompleted wells during 2011.