Petrohawk Energy (HK) ended the company’s development of the Eagle Ford Shale at the Red Hawk prospect located in Zavala County, Texas.
Petrohawk Energy said that the Red Hawk prospect failed to meet “minimum expectations” during the second quarter of 2011. The company will reallocate capital spending towards other plays in its portfolio.
Petrohawk Energy had 50,000 net acres under lease at the Red Hawk prospect, and has reported a few wells here over the last year, including the Mustang Ranch C #1H well. This well produced at an initial production rate of 355 barrels oil and 40,000 cubic feet of natural gas per day.
Petrohawk Energy was optimistic on the Red Hawk prospect and had this to say on the area at a conference call in 2010:
“Geologically, the rocks (at Red Hawk) are very, very similar to what we see in Hawkville, but just a little bit thinner. So in terms of petrophysical properties and the things that you want to see in the rock, we are very encouraged. The biggest issue is the perm to oil. This is not condensate -- gas condensate. It’s most likely oil. So that’s what we need to learn as to what kind of rates we can get out of these rocks. But based upon the quality of the rock, I think we have a good chance of having commercial production.”
Is it possible that Arthur Berman isn’t as much of an outlier as the industry wants us to believe?
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