Barnett Shale

Devon Energy Increases Barnett Shale Capital Budget For 2011

Devon Energy (DVN) announced a $1 billion increase in the company’s exploration and production capital budget for 2011, with some of the capital allocated for the development of the Barnett Shale.

Devon Energy now estimates that it would spend between $5.5 billion and $5.9 billion in 2011, compared to the previous range of $4.5 billion to $4.9 billion.

Devon Energy plans to spend $1.1 billion towards the development of the Barnett Shale and will drill 375 wells here in 2011.  The previous capital plan called for the drilling of 325 wells.  The company plans to focus on wells in Wise and Johnson counties, where the acreage contains high amounts of natural gas liquids.

Devon Energy estimates that it would exit 2011 with Barnett Shale production of 1.3 billion cubic feet of natural gas equivalents per day, up from the previous production estimate of 1.2 billion cubic feet of natural gas equivalents per day.

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

Chesapeake Energy Issues Barnett Shale Update For The Second Quarter Of 2010

Chesapeake Energy Corporation (CHK) issued its regular operational update for the second quarter of 2010, and provided new information on its operations in the Barnett Shale.

Chesapeake Energy has 220,000 net acres in the Barnett Shale, with proved reserves of 2.9 Tcfe (using the 10 year average strip pricing as of 6/30/2010). The company recently raised its estimated ultimate recovery (EUR) per well in the Barnett Shale from 2.65 to 3.0 Bcfe.

Chesapeake Energy reported average daily production from the Barnett Shale of 535 million cubic feet equivalent per day in the second quarter of 2010. The company is currently operating 22 rigs in the Barnett Shale, and plans to operate an average of 23 rigs in the Barnett Shale in 2010. These rigs will drill a total of 245 net wells.

Chesapeake Energy reported three recent well completions in the Barnett Shale:

The Brown 7H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 8 million cubic feet of natural gas per day.

The Fellowship 5H, located in Dallas County, Texas, produced at a peak 24-hour production rate of 7.9 million cubic feet of natural gas per day.

The Greenbriar 2H, located in Tarrant County, Texas, produced at a peak 24-hour production rate of 9.2 million cubic feet of natural gas per day.