Haynesville Shale

QEP Resources Updates Haynesville Shale Operations

QEP Resources (QEP) was just spun out of Questar Corporation (STR) and now controls the former exploration and production segment of Questar Corporation.

QEP Resources has acreage in the Haynesville Shale and recently updated its operations in that area. The company has 48,500 net acres in Louisiana, and proved reserves of 592 Bcf in the Haynesville Shale and Cotton Valley formations.

QEP Resources reported that its estimated ultimate recovery (EUR) per Haynesville Shale well ranges from 5 to 8 Bcf, and will cost from $8 million to $9 million each to drill.

QEP Resources is operating 7 rigs in the play in 2010, and has 276 proven undeveloped (PUD) locations to choose from. The company also has an additional 1,300 unbooked locations based on a 80 acre spacing.

QEP Resources, like other operators in the Haynesville Shale, has become more efficient at drilling wells into the play. The company averaged 38 days from spud to total depth on recent wells, and finished one in 24 days.

Cabot Oil and Gas Drills First Haynesville Shale Horizontal Well

Cabot Oil and Gas (COG) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. The company provided an update on its operations in the Haynesville Shale.

Cabot Oil and Gas recently drilled its first horizontal well in the Haynesville Shale, and is drilling its second well. The company is focused mostly on the Cotton Valley Sand formation.

“In the Haynesville as previously announced Cabot has successfully drilled and completed its first Haynesville well. The King number one which we had 69% working interest was drilled to a depth of 18,364 feet and a lateral of 4487 after 14-stage stimulation the well tested as we previously reported at 19 million per day and a new data point for us is its 30 day average of 15.2 million cubic foot per day.”

“Drilling operations are underway on our second operated well, the long, the Walters No 1, we have 54% in this well and Cabot is also participating in three outside operated wells that are currently drilling with working interest between 20% and 41%.”

Source: Seeking Alpha

Penn Virginia Updates Haynesville Shale Program

Penn Virginia (PVA) reported earnings for the first quarter of 2010, and issued an operational update on its activities in the Haynesville Shale. The company has budgeted $70 million, or 23% of its total 2010 capital expenditures to drill 8 net wells here.

Penn Virginia drilled 3 gross, or 2.8 net horizontal wells in the Haynesville Shale during the first quarter of 2010. The company has five wells waiting to be completed, with the delay caused by a shortage of fracturing equipment needed to stimulate the well.

Penn Virginia has one operated rig targeting the Haynesville Shale, and due to the delay in completions in the Haynesville Shale, will move that rig to develop the Cotton Valley formation until the completion backlog is lowered.