Haynesville Shale

Haynesville Shale - March 2011 Auction Results

The Louisiana State Mineral and Energy Board released the results of the March 2011 leasing of state lands for oil and gas development.  The state offered 155 tracts consisting of more than 232,000 acres, with many of the tracts prospective for the Haynesville Shale.

The State Mineral and Energy Board awarded 32 leases covering more than 15,000 acres, and took in $11.5 million in bonuses in the sale.  Thirty of the leases were from Parishes in southern Louisiana, with only two in the north of the state.  These results seem to reflect the diminished enthusiasm for properties that are prospective for the Haynesville Shale.

QEP Resources Updates Haynesville Shale Operations For 2010

QEP Resources (QEP) issued an operations update on its development activities in the Haynesville Shale. The company has 49,600 net acres under lease in the play.

QEP Resources reported average well costs of $9.3 million in 2010, with the last eight Haynesville Shale wells averaging $8.5 million. 

QEP Resources reported average production of 235 million cubic feet of natural gas equivalents per day in December 2010 from the Haynesville Shale. The company is operating six rigs in the play and has 13 operated wells waiting on completion.

Plains Exploration and Production Updates Operations For Haynesville Shale

Plains Exploration and Production (PXP) reported an update on its oil and gas development activities in Louisiana and Texas, where the company is developing the Haynesville Shale formation. 

Plains Exploration and Production is currently operating thirty one rigs in the Haynesville Shale and plans to reduce that to an average of 25 rigs in 2011. 

Plains Exploration and Production reported average natural gas sales volume of 146 million cubic feet equivalent per day during the fourth quarter of 2010.  The company expects average sales volume from the Haynesville Shale to reach 160 million cubic feet equivalent per day by the end of 2011.