Devon Energy (DVN) reported third quarter earnings and discussed the Haynesville Shale during its conference call held on November 4, 2009. The company has 570,000 net acres under lease in the Haynesville Shale, and has identified at least 1000 locations.
Recent Haynesville Shale Completion
“The Kardell 1H achieved an average continuous 24-hour flow rate of 30.7 million cubic feet per day. We believe that this is the highest IP rate of any Haynesville Shale well ever drilled. The well was drilled to a vertical depth of 13,850 feet with a horizontal section of 4,500 feet.”
2010 Capital Plans
“In the fourth quarter, we will ramp-up drilling activity in the Haynesville to a five-rig program for most of 2010. This additional activity combined with our non-operated drilling activity will enable us to begin securing our term acreage in the southern portion of the play. We estimate that about 105 wells will need to be drilled over the next two years for us to adequately secure the acreage we are de-risking in the southern portion of the Haynesville.”
Haynesville Shale EUR’s
“It’s a little bit hard to say what the EUR expectations are. We think up in the Carthage area, we’re probably on the 5 to 6 Bcf per well range, probably 5.5 to 6 realistically.”
Source: Seeking Alpha
