Barnett Shale

Carrizo Oil and Gas Sells Barnett Shale Leasehold

Carrizo Oil and Gas (CRZO) reported that the company is selling acreage in Texas that is currently producing from the Barnett Shale formation.

Carrizo Oil and Gas is selling 13,000 acres to KKR Natural Resources for $104 million. The properties have 75 gross or 58.5 net wells with gross production of 15.7 million cubic feet of natural gas equivalents per day (8.3 million on a net basis). Proved reserves total 122.4 Bcfe of which 55% are proved undeveloped.

Carrizo Oil and Gas said that the proceeds will be used to reduce borrowings on its credit line and help fund its 2011 capital budget.

Devon Energy Boosts Proved Reserves 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. The Barnett Shale has been the growth engine for the company since it entered the play, and Devon Resources now has 6 Tcfe booked as reserves as of the end of 2009.

“The Barnett Shale was a leading growth area for the company again in 2009. Extensions, discoveries, and performance revisions in the Barnett accounted for 251 million Boe of additions, of which just 63 million barrels were related to the new SEC rule changes."

"These drill-bit additions replaced more than three times our Barnett production of 69 million equivalent barrels for the year. Related drill-bit capital was $820 million. At year-end, we had over six trillion cubic feet equivalent booked in the Barnett, with 78% developed and 22% proved undeveloped.”

“In the Barnett, we have – at 12/31/2009, we had 707 PUD locations booked. That compares to the north of 7,000 risk locations in the Barnett.”

“Well, the bulk of our locations are on 40-acre spacing. That’s where the 500-foot spacing, we call them, but they’re essentially 40-acre spacing. That’s where the bulk of them are located. We will have some that we’re doing on a 250-foot spacing or 20-acre spacing.”

Source: Seeking Alpha

Quicksilver Resources Reports Barnett Shale Proved Reserves

Quicksilver Resources (KWK) reported proved reserves of 2.4 trillion cubic feet of natural gas equivalents at the end of 2009, including 2.1 trillion cubic feet on its properties in the Barnett Shale. The proved reserve total in the Barnett Shale was up 15% from 2008.

Quicksilver Resources said that it has 1000 locations left to drill in the Barnett Shale and as much as 3 trillion cubic feet equivalents of unbooked reserves on its acreage. The company has 281 proved undeveloped locations in the Barnett Shale, with estimated reserves totaling 768 billion cubic feet.