Haynesville Shale

Comstock Resources Comments On Haynesville Shale - Part One

Comstock Resources (CRK) held a conference call on August 3, 2010, to discuss the company’s second quarter earnings. The company made some comments on its operations in the Haynesville Shale, where the company has made a large investment.

Comstock Resources lowered its production guidance due to the unavailability of completion services in the Haynesville Shale area.

“We currently have 89,000 gross acres and 78,000 net acres that we believe are prospective for Haynesville Shale development; 56,000 acres are in North Louisiana, the better part of the play in our opinion. Given expected well spacing of 80 acres and expected pro-well recovery of 5 Bcfe per well, our acreage could have 3.7 Tcfe of reserve potential.”

“We continue to have strong results in our Haynesville Shale drilling program; 47% of our companywide production is now coming from the Haynesville Shale. We drilled 36 successful wells, including 34 horizontal Haynesville Shale wells in the first half of this year. We’re on track to another year of strong reserve growth driven by our Haynesville Shale drilling program.”

“Starting in the second quarter, we’re running behind in completing our Haynesville Shale wells due to the unavailability of pressure pumping services. We currently have 17 Haynesville Shale wells drilled, waiting on completion and the backlog continues to grow.”

“We expect to spend $350 million for our drilling program to drill 69 wells, 66 are horizontal wells, 63 are in the Haynesville or Bossier Shale…we are budgeting $150 million for our acreage acquisitions, we expect to spend $46 million on Haynesville leases.”

“Our 2010 drilling program estimated to cost $350 million will focus almost primarily on developing our Haynesville Shale acreage. We think our Haynesville Shale program could add 400 to 500 Bcfe of proved reserves in 2010.”

“We are seeing cost escalation since the beginning of the year between 20% to 30%. Most of those cost increases have come from increases on the completion side cost with the high demand for high pressure pumping services, that’s the expected. We feel like there is some room for some additional cost inflation, just until the additional equipment gets into the marketplace in 2011 and some of the operational activity subsides.”

Source

Forest Oil Updates Investors On Haynesville Shale Development

Forest Oil (FST) now has 102,900 gross, or 72,300 net acres under lease in the Haynesville Shale in Louisiana and Texas. Forest Oil has 27,900 net acres in Red River and Sabine Parish in Louisiana, and Shelby County, Texas. The company also has 44,400 net acres in Harrison, Panola, and Rusk Counties in Texas.

Forest Oil drilled and completed five Haynesville Shale wells during the second quarter of 2010. The first three wells had an average initial production rate of 18 million cubic feet equivalent per day and operated with an unrestricted flow rate.

Forest Oil is operating the final two wells under a restricted flow rate program, as the company believes that this will enhance the long-term productivity of the wells. These two wells had its production rates curtailed rate between 13 and 14 million cubic feet equivalent per day.

Forest Oil - Q1 2010 Haynesville Shale Update

Forest Oil Corporation (FST) issued an operational update on its activities in the Haynesville Shale in Texas and Louisiana. The company currently has 102,900 gross, or 72,300 net acres in the play.

Forest Oil Corporation said that 40,200 gross, or 27,900 net acres are located in Red River and Sabine Parishes in Louisiana and in Shelby County, Texas.

Forest Oil Corporation said that 62,700 gross, or 44,400 net acres are located in Harrison, Panola, and Rusk Counties in Texas.

The company currently has 2 wells being completed, and has plans to drill 13 wells during the balance of 2010.