Haynesville Shale

Plains Exploration & Production Company - Haynesville Shale Update

Plains Exploration & Production Company (PXP) held its third quarter earnings conference call on November 5, 2009 and discussed the Haynesville Shale. The company is involved with a joint venture with Chesapeake Energy (CHK) to develop the Haynesville Shale.

Haynesville Shale Production

“With respect to the Haynesville, we continue to see outstanding results and production from this resource base is growing quickly. Third quarter average daily production of approximately 48 million cubic feet equivalent net to PXP has ramped up from 14 million cubic feet equivalent per day net during the first quarter of this year and 28 million cubic feet equivalent per day net in the second quarter.”

“Production is expected to continue to increase and exceed approximately 70 million cubic feet equivalent per day net by year-end 2009, and approximately 125 million cubic feet equivalent net per day by year-end 2010."

Haynesville Shale Rig Count

“PXP and its partner and operator Chesapeake Energy Corporation are currently operating 35 rigs and expect to operate an average of 40 rigs in 2010, plus 15 or more rigs operated by others on our acreage consistent with this year’s activity.”

Bossier Shale Potential

“The Bossier is one of the extras in Haynesville that we held when we got in the deal. We actually didn't know it was there. So the aspect of the two wells that we drilled with Chesapeake have been very successful. It is a huge add on the reserve value.”

“But to have the reserves increase significantly with the addition of the Bossier for our Haynesville field is nothing short of spectacular from our standpoint.”

Source: Seeking Alpha

Goodrich Petroleum Sets 2010 Capital Budget Targeting Haynesville Shale

Goodrich Petroleum (GDP) announced a $230 million capital budget for 2010, targeted mostly toward developing its Haynesville Shale acreage in Louisiana and Texas. The company said that its capital plan would allow it to drill 46 gross (24 net) horizontal wells in 2010.

Production growth in 2010 is estimated at 15-25% based on this budget. Goodrich Petroleum also said that it purchased approximately 12,000 net acres in Nacogdoches and Angelina Counties in Texas, bringing its total net acreage across the entire Haynesville Shale play to 85,000 net acres.

Goodrich Petroleum announced the completion of two Haynesville Shale wells in the Bethany-Longstreet Field located in Caddo and DeSoto Parishes, Louisiana:

Garland 25 H-1 – completed with an initial 24-hour peak production rate of 20.2 million cubic feet per day.

Sentell 35 H-1 - completed with an initial 24-hour peak production rate of 13.9 million cubic feet per day.

Comstock Resources - Haynesville Shale Update - Part III

Comstock Resources (CRK) held its third quarter earnings conference call on November 3, 2009, and discussed its operations in the Haynesville Shale. The company has drilled 28 horizontal Haynesville Shale wells year to date in 2009, and plans 41 horizontal Haynesville Shale wells through the end of 2009. Comstock Resources belives it has 3.4 Tcfe of total reserve potential based on 80 acre spacing and 5 Bcf per well estimated ultimate recovery (EUR).

EUR’s

“We're using the 5 Bcf as a foundation or a platform EUR across the play, but certainly in Logansport we're seeing higher EURs and across our acreage footprint there.”

Haynesville Shale Production

“The Haynesville Shale results in Louisiana have gotten stronger. Several of our most recent wells in Logansport and Mansfield completed in the third quarter had initial production rates over 21 million cubic feet equivalent per day.”

“Our East Texas/North Louisiana region averaged 116 million per day with 60 million coming from our Cotton Valley wells and 56 million coming from our Haynesville Shale wells.”

Haynesville Shale Acreage

“We currently have 85,000 gross acres and 72,000 net acres that we believe are prospective for Haynesville development. 50,000 net acres are in Louisiana and 22,000 net acres are in East Texas. Given expected well spacing of 80 acres and an expected per well recovery of 5 Bcfe per well, our acreage could have 3.4 Tcfe of reserve potential.”

Operations

“We are having a very successful year with the drill bit. We drilled 38 successful wells, including 28 horizontal Haynesville Shale wells.”

“We now plan to drill the 41 planned Haynesville Shale wells. Four other wells are in Texas in the Waskom and Blocker fields. 37 other wells are being drilled in the prolific part of the plain North Louisiana. 23 of the operated wells have been completed and are now producing over 80 million cubic feet equivalent per day net to our interest.”

“Since our second quarter conference call, we've completed 10 successful operated Haynesville Shale horizontal wells in De Soto Parish in North Louisiana. Five of these wells are in our Toledo Bend North field, four in the Logansport field and one is in the Mansfield field.”

Source: Seeking Alpha