Barnett Shale

Pioneer Natural Resources Updates Barnett Shale Operations

Pioneer Natural Resources Company (NYSE:PXD) issued an operations update on its activities in the Barnett Shale in north Texas.  The company has 48,000 net acres and is continuing to add to its position in the Barnett Shale Combo play area where wells have a high liquids content. 

Pioneer Natural Resources estimates that it has 500 drilling locations on its acreage and is modeling well costs of $2.8 million, and a gross estimated ultimate recovery (EUR) of 320,000 barrels oil equivalent (BOE) per well.  The internal rate of return is estimated at 45% before tax.

Pioneer Natural Resources is operating one rig in the Barnett Shale and is conducting a seismic program that will eventually cover 150 square miles

Pioneer Natural Resources Builds Up Acreage In Barnett Shale In Second Quarter Of 2010

Pioneer Natural Resources (PXD) held a conference call on July 30, 2010 to discuss the company’s earnings for the second quarter of 2010. The company commented on its operations in the Barnett Shale combo play, where Pioneer Natural Resources has been aggressively building leasehold.

“We are relatively new entrant into the play (Barnett Shale combo), but I think an aggressive one, and we have taken pretty aggressive steps with our 43,000 net acre position in north Texas specifically in Northern Wise and southern Montague counties. And we have today by virtue of that acreage put in place a position where we can drill some 400 wells in this play.

“We are planning to drill about eight wells the remaining part of this year and internally we are using a gross EUR of about 320,000 BOE…well cost are in the neighborhood of $2.8 million in terms of what we expect for the upcoming drilling campaign.”

Source

Pioneer Natural Resources - Barnett Shale Update

Pioneer Natural Resources (PXD) reported earnings for the second quarter of 2010 and issued an operations update on its activities in the Barnett Shale. The company is acquiring acreage in the Barnett Shale, and now has 43,000 net acres under lease in the Barnett Shale combo area to the north of the traditional play.

Pioneer Natural Resources estimates that it has 400 drilling locations on its acreage and will spud the first well in August 2010. The company expects to drill eight wells by the end of 2010, and will have four rigs operating in the Barnett Shale combo play in 2011.

Pioneer Natural Resources estimates that wells here will earn a pretax rate of return of 45%. This pretax rate of return assumes that completed well costs will be $2.8 million, and have an estimated ultimate recovery (EUR) of 320,000 barrels oil equivalent per well.