Barnett Shale

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.

EOG Resources - Barnett Shale Update

EOG Resources (EOG) reported earnings for the fourth quarter of 2009, and held a conference call on February 10, 2010, to discuss the results. The company discussed its development of the Barnett combo play in Texas. EOG Resources intends to drill 246 wells in the Barnett combo play in 2010.

“We plan to drill 120 vertical and 126 horizontal Barnett Combo wells this year and are testing various spacing patterns.”

“Horizontal wells in our Montague County Combo Play yield on a value basis. About one third in crude oil, one third Natural gas liquids and one third gas, hence the Combo name.”

“In the Barnett Shale gas window, last year we completed 132 wells primarily in Johnson County with a direct finding cost of a $1.52 and a total finding cost of $1.82 per Mcf. This year we'll turn 171 wells to sales at similar expected timing cost.”

Source: Seeking Alpha

Range Resources - Barnett Shale Update

Range Resources (RRC) reported its second quarter of 2009 earnings and updated its development program in the Barnett Shale. Barnett Shale production averaged 120 Mmcfe per day net to the company.

Range Resources said that it recently tested seven wells in Denton County and the wells had a combined initial production rate of 17 Mmcfe per day. The company will bring these wells online by the end of the month. Range Resources completed two wells in Parker County, one of which recently came online at an initial production rate of 7.6 Mmcfe per day.

The company is developing its Barnett Shale acreage utilizing two rigs. Range Resources said that its finding and development costs would be approximately $1.25 per mcfe for the last six months of 2009. ___________________________________________________________________

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