Barnett Shale

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

Devon Energy To Increase Production In The Barnett Shale

Devon Energy (DVN) held a conference call on February 17, 2010, to discuss its fourth quarter of 2009 earnings report and updated investors on its operations in the Barnett Shale. After cutting back a little in development here in 2008, the company is starting to ramp up drilling activity and will get back to production in the Barnett Shale of 1.2 Bcf per day by the third quarter of 2010

“We began ramping up activity in the Barnett Shale field in North Texas during the fourth quarter. And we’re currently running 16 Devon-operated rigs there. Our net production in the Barnett averaged just over one Bcf equivalent per day for the quarter. With our increased drilling activity and approximately 225 wells awaiting completion at year-end, we expect our Barnett production to gradually begin trending up.”

“We recently completed our 2,000th horizontal well on the Barnett, and yet we still over 7,000 remaining un-drilled locations on our acreage. In 2010, we plan to invest about $1 billion of capital in the Barnett drilling, drilling 350 operated wells and participating in about 20 non-operated wells.”

“We plan to add one additional operated rig during the first quarter, taking us to a 17-rig program that we expect to maintain for most of the year. We expect Devon’s Barnett to be back up to its previous record production of 1.2 Bcf equivalent per day during the third quarter.”

Source: Seeking Alpha

EOG Resources Reports Six Barnett Shale Well Completions

EOG Resources (EOG) reported the completion of four vertical, and two horizontal wells in the Barnett Shale in the Fort Worth Basin in Texas.

Cooke County – All Barnett Shale Vertical Wells

Dangelmayr #5 - An initial production rate of 700 barrels of oil per day and 459 thousand cubic feet per day of natural gas.

Dangelmayr #6 - An initial production rate of 500 barrels of oil per day and 300 thousand cubic feet per day of natural gas.

Fitzgerald #2 - An initial production rate of 300 barrels of oil per day and 200 thousand cubic feet per day of natural gas.

Fitzgerald #14 - An initial production rate of 450 barrels of oil per day and 400 thousand cubic feet per day of natural gas.

Montague County - All Barnett Shale Horizontal Wells

Flying V #1H - An initial production rate of 300 barrels of oil per day and 1.5 million cubic feet per day of natural gas.

Boyd B #1H - An initial production rate of 250 barrels of oil per day and 1.4 million cubic feet per day of natural gas.