Eagle Ford Shale

Petrohawk Energy Issues Third Quarter Of 2010 Eagle Ford Shale Update

Petrohawk Energy (HK) issued an operations update on its oil and gas activities during the third quarter of 2010, and reported on its Eagle Ford Shale acreage. The company reported average daily production of 67 million cubic feet of natural gas equivalents from its properties in the Eagle Ford Shale.

In the Hawkville field, Petrohawk Energy operated three rigs and drilled 13 wells (11 operated, 2 non operated) during the third quarter of 2010.  An average well in this part of the Eagle Ford Shale cost $7.1 million in 2010, and is forecast to cost $7.5 million in 2011.

In the Blackhawk field, Petrohawk Energy operated five rigs and drilled 8 operated wells during the third quarter of 2010.  An average well in this part of the Eagle Ford Shale cost $7.7 million in 2010, and is forecast to cost the same amount in 2011.

Petrohawk Energy also established a $1.9 billion budget for drilling and completion activities in 2011.  The company has allocated $900 million of this total for development of the Eagle Ford Shale.

Crimson Exploration Updates Eagle Ford Shale Activity

Crimson Exploration (CXPO) issued an update on its drilling activity at its acreage in Texas that is prospective for the Eagle Ford Shale.

Crimson Exploration reached total measured depth of approximately 19,100 feet on the Windham #1H well in Bee County. This included the 6200 foot horizontal lateral that will be used to complete the well.

Crimson Exploration has also spud the Born #1H well in Bee County. The company plans to drill this well to a total measured depth of approximately 17,580 feet, including a 4200 foot horizontal lateral that will be used to complete the well.

Petrohawk Energy is the operator of both Bee County Eagle Ford Shale wells.

Petrohawk Energy Comments On Eagle Ford Shale

Petrohawk Energy (HK) reported earnings for the second quarter of 2010, and discussed the company’s activities in the Eagle Ford Shale during the quarterly conference call held in early August 2010. Petrohawk Energy has been developing properties in the Black Hawk, Hawkville and Red Hawk project areas.

“Our growing Black Hawk area in the Eagle Ford Shale and our Red Hawk project, also in Eagle Ford Shale, should provide for this growth (in oil and liquids production.) This could bring the oil component of production to approximately 5% by year end and possibly much higher in future years.”

“In the Eagle Ford, the company operated an average of 7.5 rigs during the quarter and drilled 19 wells, 11 in Hawkville, seven in Black Hawk and one in Red Hawk. This again represents the highest level of operated activity that Petrohawk's experienced in the Eagle Ford.”

“We are also progressing toward hybrid fracs in all areas of the Eagle Ford. These fracs used half of the water a slick-water frac does, which not only reduces pump time and therefore reduces cost, but they are also more environmentally friendly. We have now pumped hybrid fracs on three Hawkville wells and all of the Black Hawk and Red Hawk wells, and we believe that well performance has improved.”

“We are also seeing drilling efficiencies, increased drilling efficiencies in Black Hawk; continued low spud-to-spud days in Hawkville…In both Black Hawk and Hawkville. (Well costs) are running right at $6 million to $6.5 million.”

“We've had forecast by year end approximately 20 wells unfrac-ed in the Eagle Ford…We’re working towards four dedicated frac crews in the Eagle Ford by first of the year, 2011.”

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