Haynesville Shale

QEP Resources Updates Haynesville Shale Operations

QEP Resources (QEP) was just spun out of Questar Corporation (STR) and now controls the former exploration and production segment of Questar Corporation.

QEP Resources has acreage in the Haynesville Shale and recently updated its operations in that area. The company has 48,500 net acres in Louisiana, and proved reserves of 592 Bcf in the Haynesville Shale and Cotton Valley formations.

QEP Resources reported that its estimated ultimate recovery (EUR) per Haynesville Shale well ranges from 5 to 8 Bcf, and will cost from $8 million to $9 million each to drill.

QEP Resources is operating 7 rigs in the play in 2010, and has 276 proven undeveloped (PUD) locations to choose from. The company also has an additional 1,300 unbooked locations based on a 80 acre spacing.

QEP Resources, like other operators in the Haynesville Shale, has become more efficient at drilling wells into the play. The company averaged 38 days from spud to total depth on recent wells, and finished one in 24 days.

EXCO Resources Buys Haynesville Assets From Southwestern Energy

Southwestern Energy Company (SWN) announced the sale of 20,063 net acres of properties in the Haynesville Shale area in East Texas to EXCO Resources (XCO).

Southwestern Energy Company said that the sale covered only the rights to production from the Haynesville and Mid Bossier formations, and the company retained its rights to the James Lime and Pettet formations.

EXCO Resources paid $355 million for the properties, which had 10 million cubic feet per day of production and proved reserves of 31 Bcfe. The properties are located in Shelby, San Augustine and Nacogdoches Counties, in Texas.

Southwestern Energy Company still has 10,500 acres after the sale that is prospective for the Haynesville Shale, and plans an active development program on that acreage in 2010.

Denbury Resources Reports Additional Haynesville Shale Non Operated Well Completions

Denbury Resources (DNR) recently reported the results of 3 non-operated horizontal wells on its acreage in the Haynesville Shale.

The Querbes 18-16-16-1 is in the Greenwood Waskom field in Louisiana, and was spud on October 24, 2009. The well produced at an initial production rate of 11.3 million cubic feet of natural gas per day. Denbury Resources has a 24% working interest in this well.

The Knighton 11-5 is in the Elm Grove field in Louisiana, and was spud on February 10, 2010. The well produced at an initial production rate of 16.2 million cubic feet of natural gas per day. Denbury Resources has a 9% working interest in this well.

The Womack 2-1H is in the Elm Grove field in Louisiana, and was spud on October 27, 2009. The well produced at an initial production rate of 12.96 million cubic feet of natural gas per day. Denbury Resources has a 2% working interest in this well.