Barnett Shale

Carrizo Oil and Gas - Denton County Barnett Shale

Carrizo Oil and Gas (CRZO) presented at an energy conference in March 2010 and provided a breakdown on its properties in the Barnett Shale Carrizo Oil and Gas said that its core acreage in South Denton County has the following characteristics:

Initial Production Rate – 3 million cubic feet per day.

Estimated Ultimate Recovery – 3 Bcf.

Cost – $3.2 million.

Finding and Development Costs – $1.42 per Mcfe.

Completion Backlog – 4 gross wells.

Net Production – 8 million cubic feet equivalent per day.

Carrizo Oil and Gas - Tarrant County Barnett Shale

Carrizo Oil and Gas (CRZO) presented at an energy conference in March 2010 and provided a breakdown on its properties in the Barnett Shale.

The company has separated it acreage into two core areas, a Tier 1 and a Tier 2 area. Carrizo Oil and Gas said that its core acreage in Southeast Tarrant County has the following characteristics:

Initial Production Rate – 4 million cubic feet per day.

Estimated Ultimate Recovery – 4 Bcf

Cost – $3.0 million.

Finding and Development Costs – $1.00 per Mcfe.

Completion Backlog – 33 gross wells.

Net Production – 60 million cubic feet equivalent per day.

Carrizo Oil and Gas said that it could drill up to 320 net wells on its current Barnett shale acreage in Tarrant County. This assumes 45 acre well spacing.

Chesapeake Energy Reports Best Barnett Shale Well Ever

Chesapeake Energy Corporation (CHK) reported the highest producing natural gas well in the Barnett Shale ever drilled. The company said that based on the production to date, the well would produce 10 billion cubic feet of gas during its lifetime.

The Day Kimball Hill #A1 is located in Southeast Tarrant County, Texas, and produced an average of 12.97 million cubic feet of natural gas per day in October 2009. Since shale gas wells decline sharply during the first few years, this Barnett Shale well has seen its production fall to 8.66 million cubic feet in November and 6.79 million in December.

The Day Kimball Hill #A1 cost $2.6 million to drill and complete and will produce natural gas for 50 years. The well was drilled to a vertical depth of approximately 8333 feet and the completed with a 7500 foot lateral, and a 16 stage hydraulic fracturing operation.