Petrohawk Energy (HK) reported earnings for the second quarter of 2010, and reported on the company’s Haynesville Shale activities during the quarterly conference call held in early August 2010.
“In the Haynesville, the company operated an average of approximately 16.5 rigs during the quarter and drilled 28 wells, which is the highest number of wells drilled in any quarter in the two years that we have been drilling in the play. In addition, there were a total of 66 nonoperated wells drilled, which is also the highest number of nonoperated wells during any quarter…We’ve had forecast by year end approximately 15 wells unfrac-ed in the Haynesville.”
“We now have four wells with over 360 days of production, 13 wells with over 180 days of production and 22 wells with over 120 days of production. Based on the extent of this database, we now believe that restricted rate practices support a change in the average first year decline from approximately 80% to 85% to a first year decline approximating 45% to 55%, with some wells displaying declines that could be as low as 25% and 30%.”
“Major milestone is reached in mid-2011, when the bulk of our leasehold in the Haynesville Shale becomes held via production. This is based on our current rig schedule.”
“We remain on track to protect core positions in the Haynesville Shale. In fact, we believe we own some of the best acreage and the best operating results in the play.”
“We noticed is that the overall rig count in the Haynesville decreased slightly for the first time the last week or two. I have no idea if that's the trend or at one point. But if it's a trend, that would help ease the situation a little bit, too.”
“It’s (well costs) between $9.5 and $10 million in the Haynesville and again, that's not with some of the things that I've mentioned in the call being affected.”