Barnett Shale

XTO Energy - Barnett Shale Update

XTO Energy (XTO) updated its drilling operations in the Barnett Shale when it released earnings for the second quarter of 2009. The company has 277,000 net acres under lease, and is running 10 rigs. Production from its Barnett Shale properties averaged 621 million cubic feet equivalent per day.

XTO Energy reported the initial production rates of 9 wells that it completed during the second quarter of 2009 on its acreage in the core area of the Barnett Shale:
 
Gafford C 1H - 5.5 million cubic feet per day (MMCFPD)
Arlington Surber B 2H - 5.1 MMCFPD
Gafford D 1H - 4.6 MMCFPD
Mira Lagos Unit 3H - 4.6 MMCFPD
Britt Unit 12H - 4.5 MMCFPD
Gafford C 4H - 4.3 MMCFPD
Gafford D 4H - 4.2 MMCFPD
Graystone 2H - 4.1 MMCFPD
Mira Lagos Unit 2H - 4.1 MMCFPD

XTO Energy reported the initial production rates of 2 wells that it completed during the second quarter of 2009 on its acreage in the Tier 1 area of the Barnett Shale:
 
Hyles 3H - 2.1 MMCFPD
Hyles 2H - 2.0 MMCFPD ___________________________________________________________________

Do you use technical analysis to find the proper entry point before you buy a stock? Then Click Here for a free Trend Analysis.

The Barnett Shale - Top Producers

During 2008, the Barnett Shale produced 1.396 Tcf of natural gas.  The top ten producers accounted for most of this production.  The top ten producers of natural gas, according to the Texas Railroad Commission are:

Company MMcf

Devon Energy - 414,413
XTO Energy - 216,929
Chesapeake Energy - 195,270
EOG Resources - 160,454
Encana - 67,409
Quicksilver Resources -  65,273
Range Resources -  41,080
Burlington - 35,170
Denbury -  28,132
Williams - 22,408

Burlington was purchased by Conoco-Phillips in 2006, but the state authorities still list Burlington as the operator of record. 

Denbury Resources recently sold 60% of its Barnett assets to a private company.

___________________________________________________________________

Do you use technical analysis to find the proper entry point before you buy a stock? Click Here for a free Trend Analysis.

The Barnett Shale - XTO Energy

XTO Energy has significant acreage positions in most of the major shale plays in North America, including the Barnett Shale.  The company had 277,000 acres under net lease in the Barnett Shale and was utilizing 13 rigs to develop this play.  XTO Energy considers 57% of this acreage to be in the “core” area of the Barnett Shale. XTO Energy estimates that its well costs for drilling and completion will average $2.8 million per well in 2009.  The company has an inventory of 2400-2600 drilling locations in the Barnett Shale with a reserve potential of 4.7 Tcfe.

The economics of the basin are still good, and XTO Energy estimates that at a price of $5.00 per Mcf, the company will earn a 47% rate of return in the Barnett Shale with the following assumptions:

Well Cost - $ 2.8million

Gross EUR- 3.3 Bcfe

Finding and development costs - $1.13 per Mcfe.