Haynesville Shale

EOG Resources Reports Haynesville Shale Well Completions

EOG Resources (EOG) issued an operations update for the second quarter of 2010 on its activities in the Haynesville Shale. The company reported the results of two recent well completions in the Haynesville Shale.

The Crane #26-1H well had an initial production rate of 32 million cubic feet per day of natural gas, and average production over the first 30 days of 27 million cubic feet per day.

The Murray #1H well had an initial production rate of 30 million cubic feet per day of natural gas, and average production over the first 30 days of 25 million cubic feet per day. Both these Haynesville Shale wells were operating under restricted production due to pipeline constraints.

EOG Resources also reported the completion of the Walters #1H Haynesville Shale well in San Augustine County, Texas. The well had an initial production rate of 21 million cubic feet per day of natural gas.

EOG Resources - Haynesville Shale - Q1 2010 Conference Call Comments

EOG Resources (EOG) reported earnings for the first quarter of 2010, and held an earnings conference call to discuss the results. The company made comments on its activities in the Haynesville Shale in Louisiana and Texas.

“Our current rig activity there in the Haynesville is about 11 rigs and we've projected our total North American gas close this year is going to be in the range of 1% to 2%. So we're very cognizant of the fact that the gas market has got a whole lot of gas in storage right now and the last thing we need is everybody to be drilling a zillion gas wells in North America. And so what we've done is, we've tempered, significantly, our gas drilling in all those discretionary areas.”

“Places where we have to drill a certain amount to hold acreage. The biggest of those is the Haynesville… At this stage, we're going to stick with our plan of running roughly 11 rigs and generating that 1% to 2% North American gas production growth. I guess if gas were to fall south of $4 and we were to believe that it was just going to stay there permanently, we'd reassess that.”

Source: Seeking Alpha

EOG Resources - Haynesville Shale Update

EOG Resources Inc. (EOG) held its third quarter earnings conference call on November 9, 2009 and discussed the Haynesville Shale. EOG Resources indicated that the bulk of its natural gas production growth would come from its Haynesville Shale properties in 2010.

Haynesville Shale Acquisition

“We recently consummated a Haynesville acreage transaction in Nacogdoches County, Texas. EOG acquired approximately 50,000 acres (37,500 net) of Haynesville deep rise.”

Total Acreage

“We now have 153,000 net Haynesville acres, but the location of our acreage is more important than the total number. Our acreage is concentrated primarily in two areas, one portion is in the Louisiana’s DeSoto Parish…Remainder of the acreage is primarily in Nacogdoches and San Augustine Counties in East Texas.”

Haynesville Shale 2010 Capital Plans

“We plan to run 10 Haynesville rigs in 2010 and increase our Haynesville net gas production from the current 40 million cubic feet a day to 200 million cubic feet a day by year-end 2010. The Haynesville will be the primary driver of our 2010 North American gas production increase.”

Source: Seeking Alpha