Haynesville Shale

EXCO Resources - 2010 Haynesville Shale Capital Program

EXCO Resources, Inc. (XCO) released details of its 2010 capital program. The company will spend $471.4 million net in 2010 on various projects. EXCO Resources is currently operating 13 rigs and plans on increasing this to 17 in 2010.

EXCO Resources is moving forward on its development program in the Haynesville Shale. The company will spend 54% of its total capital budget or $255.2 million in capital to drill and complete 128 gross (37.9 net) wells on an operating and non-operating basis in 2010 in the Haynesville Shale.

The company is in a joint venture with BG Group in the Haynesville area, and will have a large part of the cost of its capital program carried by that company. EXCO Resources is targeting Haynesville Shale, Bossier Shale and Cotton Valley Group formations with the program.

EOG Resources - Haynesville Shale Update

EOG Resources Inc. (EOG) held its third quarter earnings conference call on November 9, 2009 and discussed the Haynesville Shale. EOG Resources indicated that the bulk of its natural gas production growth would come from its Haynesville Shale properties in 2010.

Haynesville Shale Acquisition

“We recently consummated a Haynesville acreage transaction in Nacogdoches County, Texas. EOG acquired approximately 50,000 acres (37,500 net) of Haynesville deep rise.”

Total Acreage

“We now have 153,000 net Haynesville acres, but the location of our acreage is more important than the total number. Our acreage is concentrated primarily in two areas, one portion is in the Louisiana’s DeSoto Parish…Remainder of the acreage is primarily in Nacogdoches and San Augustine Counties in East Texas.”

Haynesville Shale 2010 Capital Plans

“We plan to run 10 Haynesville rigs in 2010 and increase our Haynesville net gas production from the current 40 million cubic feet a day to 200 million cubic feet a day by year-end 2010. The Haynesville will be the primary driver of our 2010 North American gas production increase.”

Source: Seeking Alpha

Devon Energy - Haynesville Shale Update

Devon Energy (DVN) reported third quarter earnings and discussed the Haynesville Shale during its conference call held on November 4, 2009. The company has 570,000 net acres under lease in the Haynesville Shale, and has identified at least 1000 locations.

Recent Haynesville Shale Completion

“The Kardell 1H achieved an average continuous 24-hour flow rate of 30.7 million cubic feet per day. We believe that this is the highest IP rate of any Haynesville Shale well ever drilled. The well was drilled to a vertical depth of 13,850 feet with a horizontal section of 4,500 feet.”

2010 Capital Plans

“In the fourth quarter, we will ramp-up drilling activity in the Haynesville to a five-rig program for most of 2010. This additional activity combined with our non-operated drilling activity will enable us to begin securing our term acreage in the southern portion of the play. We estimate that about 105 wells will need to be drilled over the next two years for us to adequately secure the acreage we are de-risking in the southern portion of the Haynesville.”

Haynesville Shale EUR’s

“It’s a little bit hard to say what the EUR expectations are. We think up in the Carthage area, we’re probably on the 5 to 6 Bcf per well range, probably 5.5 to 6 realistically.”

Source: Seeking Alpha