Barnett Shale

EOG Resources - Q3 2010 - Barnett Shale Conference Call Comments

EOG Resources (EOG) held a conference call on November 2, 2010, to discuss earnings for the third quarter of 2010, and discussed the company’s activities in the Barnett Shale in Texas.

“Our Barnett Combo results continue to be consistent, and we're in a steady manufacturing mode. For the second quarter in a row, we've expanded the Core area from 150,000 to 160,000 acres. This play keeps getting bigger. Earlier this year, we highlighted our first very good horizontal well in the Eastern portion of our acreage, where we'd previously recorded only verticals. Since then, we've completed many successful Eastern area wells in horizontals and verticals.”

“Recent successful horizontals are Strickland A #2H, Settle C #3H and the Christian C #3H, with IP rates of 1,118, 731 and 954 barrels of oil per day. It's 1.6 million to 2.1 million cubic feet a day of rich gas. EOG has working interest varying from 90% to 98% in these wells.”

“Two successful vertical wells in the East are the Strickland #1 and Slagle #1, which IP-ed at 865 and 539 barrels of oil per day. We have 96% and 100% working interest in these wells, respectively.”

“We've also achieved good results in the Western portion of Montague County, with a Posey C#3H testing at 536 barrels of oil per day. We're currently operating 16 rigs in the Combo and plan to run 16 rigs here in 2011.”

“One other interesting feature here, although the Combo increased about 1/3 oil, 1/3 NGLs and 1/3 residue gas, the current revenue split is over 90% liquids and less than 10% gas, consistent with our liquids shift. We plan to drill 258 Barnett Combo wells in 2011.”

“On our Barnett gas activity, essentially all of our Johnson County acreage is now held by production, till we plan to drill zero Barnett gas wells in 2011.”

Source

Pioneer Natural Resources - Q3 2010 - Barnett Shale Conference Call

Pioneer Natural Resources (PXD) held a conference call on October 27, 2010, to discuss the company’s financial results for the third quarter of 2010.  The company made comments on its acreage that is prospective for the Barnett Shale. 

“We have over 48,000 acres that were leased in the Barnett Shale combo are, that would yield about 500 drilling locations and the first well of which is being drilled as we speak, we're drilling about 3,500-foot lateral and we'll be getting back to you with results that probably won't be on production until the latter part of this year. But suffice it to say, we're excited to see how the results from this well works out, as well as a series of additional wells we'll be drilling between now and the year-end in the combo play.”

“Per acre in the Barnett Combo Play, what's the rough dollars per acre you've invested to assemble that position…it started at $300 to $500 an acre. It's been a tie recently as 750 to 1,000. It's going to average somewhere in between those numbers. Our position is close to 50,000 acres.”

“We're drilling our first well as we speak so we don't have the results reported, and we're probably won't have any results until our fourth quarter call.”

 Source

 

Devon Energy - Barnett Shale Comments

Devon Energy (DVN) made comments on its operations in the Barnett Shale during the second quarter earnings conference call. The company averaged production of 1.1 billion cubic feet of natural gas equivalent per day during the second quarter of 2010, just short of its record production of 1.2 billion cubic feet of natural gas equivalent per day. Devon Energy estimates that its production will surpass the previous record during the third quarter of 2010.

“Moving to the Barnett Shale field in North Texas, we are currently running 17 Devon-operated rigs. But as I mentioned, we'll be moving one of these rigs to the Granite Wash later this month. But we plan to run the remaining 16 rigs in the Barnett for the rest of 2010. We continue to be very selective with our Barnett drilling, focusing our activity in the liquids-rich areas.”

“Our net production in the Barnett exceeded 1.1 Bcf equivalent per day, including 39,000 barrels per day of NGLs and condensate. Although hidden by the rounding, the second quarter daily rate was up 3% from the first quarter. We continue to expect our Barnett production to reach our previous record production of 1.2 Bcf equivalent per day during the third quarter.”

Source