Barnett Shale

Quicksilver Resources Updates Barnett Shale Operations

Quicksilver Resources (KWK) reported earnings for the second quarter of 2010, ending 6/30/2010, and discussed the company’s operations in the Barnett Shale in Texas. The company has a large inventory of uncompleted wells in the Barnett Shale and has the option to use any extra capital to reduce this inventory during the balance of 2010.

“On the operational front we currently have four rigs running in the Barnett Shale. We have added one rig on a temporary basis to drill in Lake Arlington area following the receipt of permits and rights of way that we had expected at the beginning of the year."

"The company still expects to drill and complete a total of 80 wells in the Basin in 2010. Company also expects to complete at least 25 additional wells from its existing inventory of drill, but uncompleted wells.”

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Pioneer Natural Resources Builds Up Acreage In Barnett Shale In Second Quarter Of 2010

Pioneer Natural Resources (PXD) held a conference call on July 30, 2010 to discuss the company’s earnings for the second quarter of 2010. The company commented on its operations in the Barnett Shale combo play, where Pioneer Natural Resources has been aggressively building leasehold.

“We are relatively new entrant into the play (Barnett Shale combo), but I think an aggressive one, and we have taken pretty aggressive steps with our 43,000 net acre position in north Texas specifically in Northern Wise and southern Montague counties. And we have today by virtue of that acreage put in place a position where we can drill some 400 wells in this play.

“We are planning to drill about eight wells the remaining part of this year and internally we are using a gross EUR of about 320,000 BOE…well cost are in the neighborhood of $2.8 million in terms of what we expect for the upcoming drilling campaign.”

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EOG Resources - Barnett Shale - Q1 2010 Conference Call Comments

EOG Resources (EOG) reported earnings for the first quarter of 2010, and held an earnings conference call to discuss the results. The company made comments on its activities in the Barnett Shale in Texas, on what the company calls the Barnett Combo play.

EOG Resources has recently drilled a productive horizontal well on a 25,000 acre plot that the company had designated for vertical drilling. The well was so good that the company may convert this area to horizontal drilling.

“In the Barnett Combo play where we've completed our best producer to date. The Settle B #1H well began producing at a rate of 1,852 barrels of oil per day, with 3.7 million cubic feet a day of liquids rich gas and we yield reserves considerably higher than our model horizontal well. This well was significant because it was drilled in the eastern portion of the play in the 25,000 acres we had designated for vertical drilling.”

“And this horizontal well, the Settle well has turned out much, much better than, frankly, than any horizontal combo well we've drilled so far; and it's kind of startling to us.”

“The rock quality in this 25,000-acre area is the best in the play, which is why vertical wells are economic. However, if we can replicate the Settle results with additional horizontal wells, and these 25,000 acres can be exploited at a higher ROR and reserve recovery than we projected for vertical wells, we'll soon be drilling additional horizontals here and we'll apprise you of the results later this year.”

“In addition to the Settle well, we've also completed a number of horizontal wells in the Barnett combo play. The Alamo #1H, #2H and #3H wells were drilled on 55-acre spacing in Montague County. The wells began producing at a combined rate of over 900 barrels of oil per day, with 2.4 million cubic feet a day, and we have 97% working interest in these wells.”

“On the horizontals, we're just going to see if we can replicate the Settle results. The horizontal wells are going to cost us about $3.5 million a well. The verticals would be, I believe, it's about $2.1 million a well.”

Source: Seeking Alpha