EnCana Corporation (ECA) held a conference call on February 11, 2010, to discuss its fourth quarter of 2009 earnings report. The company provided details on its operations in the Haynesville Shale, where it has built up a position of 430,000 net acres.
EnCana Corporation is ramping up its drilling in 2010 and 2011 so it can hold it acreage before the leases expire. This two year plan should protect 165,000 net acres in what the company considers the core of the Haynesville Shale.
“Our primary focus in the Haynesville this year continues to be on land retention and completion optimization. We're executing program through 2010 and 2011 to ensure we obtained our most respected lands, expect to drill at least a 100 wells this year and have a target exit rate in excess of 400 million cubic feet per day. The latest 2010 wells have averaged approximately 20 million cubic feet per day, flowing at around 85,000 psi.”
“Our land retention strategy in Haynesville, we talk about drilling 50 wells in 2009. An additional hundred net wells in 2010 and then finishing off that program in 2011 with an additional hundred wells, which by and large attacks about 165,000 net acres of our land position. Of course, our land position is 430,000 net acres. So we're really talking about attacking the areas where we have originally acquired our land in what we think is the core of the Haynesville trend and we're rally attacking just that area.”
“There's another area so called phase III area within the company that we'll be looking at in the 2010 and 2011 area that's another hundred thousand acres. So now just within that 165,000 acre area that we're currently planning and working on the expiring component of our land base, there's a tremendous amount of opportunity.”
Source: Seeking Alpha
