Haynesville Shale

El Paso - Haynesville Shale Non Holly Field - Operational Details

El Paso (EP) has 20,000 net acres prospective for the Haynesville Shale that are located outside of the Holly area in Louisiana.  The company disclosed the following operational and financial details on wells here.

Non Holly Overview

Haynesville Shale wells in the Non Holly area are typically drilled to a depth from 11,000 to 12,500 feet with a horizontal lateral of 4,300 to 4,600 feet. The average well costs from $8.7 million to $9.3 million and has an estimated ultimate recovery ranging from 5 to 6 Bcfe.

Non Holly wells drilled by El Paso have an initial production rate from 9 to 19 million cubic feet of natural gas equivalents per day and average between 6 and 15 million cubic feet of natural gas equivalents during the first thirty days of production.

El Paso estimates that wells here have an internal rate of return from 5% to 15% at prices of $4.00 per MMBtu for natural gas and $80 per barrel for oil.  Finding and development costs for Non Holly wells range between $1.80 and $2.35 per Mcfe.

El Paso - Haynesville Shale Holly Field - Operational Details

El Paso (EP) has 20,000 net acres prospective for the Haynesville Shale in the Holly area in Desoto Parish, Louisiana.  The company estimates that this acreage is economic at a natural gas price below $4.00 and disclosed the following details on wells here:

Holly Overview

Haynesville Shale wells in the Holly area are typically drilled to a depth from 11,000 to 12,500 feet with a horizontal lateral of 4,300 to 4,600 feet. The average well costs from $8.7 million to $9.3 million and has an estimated ultimate recovery ranging from 6 to 7 Bcfe.

Holly wells drilled by El Paso have an initial production rate from 15 to 25 million cubic feet of natural gas equivalents per day and average between 12 and 20 million cubic feet of natural gas equivalents during the first thirty days of production.

El Paso estimates that wells here have an internal rate of return from 20% to 30% at prices of $4.00 per MMBtu for natural gas and $80 per barrel for oil.  Finding and development costs for Holly wells range between $1.55 and $1.95 per Mcfe.

GMX Resources Updates Production On Two Haynesville Shale Wells

GMX Resources (GMXR) released updated production information on two wells recently drilled to the Haynesville Shale formation.

The Mercer #11H was put to sales on July 27, 2010, and produced an average of 8.17 million cubic feet per day of natural gas during the first thirty days of production.

The Verhalen F #1H was put to sales on July 7, 2010, and produced an average of 5.74 million cubic feet per day of natural gas during the first sixty days of production.

GMX Resources said that these two Haynesville Shale wells benefited from a refinement of the completion process used by the company on its acreage.