Haynesville Shale

Petrohawk Energy Updates Haynesville Shale Operations

Petrohawk Energy (HK) issued an operational update on its activities in the Haynesville Shale. The company participated in 94 wells in the Haynesville Shale during the second quarter of 2010, of which 28 were operated. All the operated wells were completed under restricted production practices.

Petrohawk Energy reported that average daily production from the Haynesville Shale during the second quarter of 2010 was 386 million cubic feet equivalent per day.

Petrohawk Energy is currently drilling the company’s first well in the Haynesville Shale using a modified wellbore design that requires less pressure to conduct hydraulic fracturing operations on the well. The company estimates that if the design is successful, it would reduce well costs by $1 million. This is important because Petrohawk Energy reported a 30% increase in well completion costs since the beginning of 2010.

Petrohawk Energy reduced its rig count in the Haynesville Shale during the second quarter of 2010, and is operating 14 rigs on the play. The company is focused on converting its acreage here from term to held by production.

Petrohawk Energy Comments On Haynesville Shale

Petrohawk Energy (HK) reported earnings for the second quarter of 2010, and reported on the company’s Haynesville Shale activities during the quarterly conference call held in early August 2010.

“In the Haynesville, the company operated an average of approximately 16.5 rigs during the quarter and drilled 28 wells, which is the highest number of wells drilled in any quarter in the two years that we have been drilling in the play. In addition, there were a total of 66 nonoperated wells drilled, which is also the highest number of nonoperated wells during any quarter…We’ve had forecast by year end approximately 15 wells unfrac-ed in the Haynesville.”

“We now have four wells with over 360 days of production, 13 wells with over 180 days of production and 22 wells with over 120 days of production. Based on the extent of this database, we now believe that restricted rate practices support a change in the average first year decline from approximately 80% to 85% to a first year decline approximating 45% to 55%, with some wells displaying declines that could be as low as 25% and 30%.”

“Major milestone is reached in mid-2011, when the bulk of our leasehold in the Haynesville Shale becomes held via production. This is based on our current rig schedule.”

“We remain on track to protect core positions in the Haynesville Shale. In fact, we believe we own some of the best acreage and the best operating results in the play.”

“We noticed is that the overall rig count in the Haynesville decreased slightly for the first time the last week or two. I have no idea if that's the trend or at one point. But if it's a trend, that would help ease the situation a little bit, too.”

“It’s (well costs) between $9.5 and $10 million in the Haynesville and again, that's not with some of the things that I've mentioned in the call being affected.”

Source

Goodrich Petroleum Updates Haynesville Shale Activities For Second Quarter Of 2010

Goodrich Petroleum (GDP) updated investors on the company’s operations in the Haynesville Shale. The company reported the results of two wells targeting the Haynesville Shale in Texas.

Goodrich Petroleum drilled the SW Henderson 1H well located in Angelina County, Texas. The SW Henderson 1H well logged 215 feet of Haynesville Shale pay, and Goodrich Petroleum is drilling the lateral and will complete the well in early September 2010.

Goodrich Petroleum also drilled the R Dean 1H located in Shelby County, Texas. The R Dean 1H well logged 126 feet of Haynesville Shale pay, and Goodrich Petroleum reached total depth on the lateral and will start completion operations shortly.