Haynesville Shale

New York Times Article Questions Natural Gas Shale Plays

Anyone that invests in exploration and production stocks or works in the industry should look at this article published in the New York Times this past weekend.  The writer basically accuses the industry of lying to investors through overstating reserves, decline rates and the economics of natural gas shale plays.  The infamous Art Berman is quoted in the article, but there are also nearly 500 documents from various industry insiders as well as from investment analysts on the buy and sell side.  An excerpt is below:

Insiders Sound an Alarm Amid A Natural Gas Rush

“In the e-mails, energy executives, industry lawyers, state geologists and market analysts voice skepticism about lofty forecasts and question whether companies are intentionally, and even illegally, overstating the productivity of their wells and the size of their reserves. Many of these e-mails also suggest a view that is in stark contrast to more bullish public comments made by the industry, in much the same way that insiders have raised doubts about previous financial bubbles.”

Crimson Exploration Reports Completion Of Blue #1 Haynesville Shale Well

Crimson Exploration (CXPO) reported the completion of the Blue #1 well into the Haynesville Shale in East Texas.  This Blue #1 well is located at the Bruin prospect area, and started producing at a gross restricted daily rate of 8.3 million cubic feet of natural gas equivalents per day.

Crimson Exploration said that the company has concluded its operated activity in the Haynesville Shale for 2011.

Comstock Resources Releases Haynesville Shale Update For First Quarter Of 2011

Comstock Resources (CRK) reported operational statistics and other data on the company’s Haynesville Shale activities for the first quarter of 2011. 

• Drilled 15 gross or 6.9 net wells, and completed 21 wells (operated and non-operated basis).
• Average initial production rate per well of 11.2 million cubic feet of natural gas equivalents per day.
• Seven Haynesville Shale wells are in the process of being drilled as of 3/31/2011.

Comstock Resources plans to drill 46 gross or 29.7 net wells in the Haynesville Shale in 2011, and operate four rigs.  The company will move one rig out of the areas during 2011.