Petrohawk Energy (HK) released earnings for the fourth quarter of 2009, and updated its operations in the Haynesville Shale. The company continues to benefit from its prolific wells in the Haynesville Shale, and is driving costs down as well.
In 2009, Petrohawk Energy produced 174 billion cubic feet of natural gas equivalents, a 76% increase from 2008. The company attributed this production growth to its activities in the Haynesville Shale. Petrohawk Energy currently has 17 rigs running in the play, and has production of 500 million gross cubic feet equivalents per day.
Petrohawk Energy said that its costs to drill in the Haynesville Shale have fallen sharply since it entered the play, and expects this to continue. The average cost to drill, complete and connect wells to sales decreased from $12 million in the first quarter of 2009, to $9 million in the fourth quarter of 2009.
The average cost to drill Haynesville Shale wells in 2009 was $10.5 million, and the company expects well costs to range between $8.0-9.0 million in 2010.
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