Haynesville Shale

Petrohawk Energy Comments On Haynesville Shale

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.”

Source

Petrohawk Energy Comments On Haynesville Shale

Petrohawk Energy (HK) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. During the call, the company made comments on its activities in the Haynesville Shale.

Petrohawk Energy is operating a restricted rate program in the Haynesville Shale in an attempt to increase the long-term performance of the wells. The program seems to be a success so far.

Restricted Rate Program

“Our restricted rate program in the Haynesville is yielding some very exciting results. Moderating rates and moderating withdrawal during the time of low natural gas prices is an interesting capacity capability.”

“And we've seen enough positive results from this that we're basically putting all new wells and most of our existing wells on a restricted rate program at varying choke size is depending on where they are within the field.”

“The decline rate is about half, it's 40% to 50% in the general sense, at the worst. The postponement of compression is, we haven't quite run the full study on that. But I think on a intuitive basis, we've said it is four, five years probably.”

“We have found out that in some of the earliest wells we drilled within the Haynesville, that we were considering compression on those. And we started restricting the producing rates on those and they're not going to need any compression anytime soon. So it's quite an economic jewel there to postpone compression. So four or five years is our best guess right now.”

Haynesville Shale Acreage

“18,000 acres was added at Haynesville during the quarter, mostly deals that were struck last year and closed in the first quarter.”

“Most of them. Substantially, all the material acreage by somewhere around the middle of the year. We have some 2012 expirations. They're not a huge number, but we're not under the gun on every single lease there.”

Source: Seeking Alpha

Petrohawk Energy Reports Success With Haynesville Shale Restricted Well Program

Petrohawk Energy (HK) released an operational update, and provided details on its activities in the Haynesville Shale. The company is reducing the operated rig count in the Haynesville Shale to 14 from 17 during the balance of 2010, but still plans on drilling a total of 110 wells.

Petrohawk Energy also reported success with its program of restricted production on new wells in the Haynesville Shale. The company said that the program has led to higher first year production and higher estimated ultimate recovery on these wells. The company has decided to restrict production on all newly completed wells.

Petrohawk Energy also restricted production on a select group of already producing Haynesville Shale wells, and noticed a flatter decline curve on these wells.