EnCana Corporation (ECA) held a conference call on July 27, 2010, to discuss earnings for the second quarter of 2010. During the call the company made extensive comments on its activities in the Haynesville Shale.
EnCana Corporation is tailoring its drilling program to retain its leases in the Haynesville Shale. The company also extended its drilling into a new area in Sabine County.
“In the Haynesville shale, which we will now be reporting as a separate key resource play, we continued work on our land retention strategy, drilling a total of 41 net wells in the first half of this year. Haynesville production in the second quarter of 2010 was just below 270 million cubic feet equivalent per day net to EnCana. Putting us on track to meet our year end average production guidance of 325 million cubic feet equivalent per day and exiting the year at greater than 500 million cubic feet equivalent per day.”
“During the second quarter, we drilled a promising well in the new Brent Miller field, a sizable Texas extension in Sabine County. This well extended the Haynesville and Mid-Bossier potential into an area where EnCana holds 45,000 net acres. Our well initially flowed at 25 million cubic feet equivalent per day but when a second wing valve was added, production from the 14,500-foot depth well increased to 32 million cubic feet equivalent per day. We have a second well drilled and waiting completion in late July.
“We have 26 operated rigs working on the Haynesville play, and we've moved a number of our rigs from East Texas to the land retention program in the Haynesville…and making sure that we complete that 250 well, 100 wells this year program, and then 100 wells more in 2011.”
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