Haynesville Shale

EXCO Resources To Reduce Haynesville Shale Drilling In 2012

EXCO Resources (XCO) announced a 2012 capital budget totaling $710 million, with $585 million allocated to development and completion activities across the company’s portfolio.  The company’s budget reflects a decrease in spending in the Haynesville Shale relative to 2011.

EXCO Resources plans to spend $453 million to develop the Haynesville Shale in 2012, along with an additional $16 million in lease acquisitions and other operations.  The company will operate 13 rigs in 2012 in the Haynesville Shale.

EXCO Resources said that the reduction in cash flow was done in order to “manage our cash flow in the current natural gas price environment.” The company expects to complete all of its lease obligations during 2012 and convert all its acreage to held by production.  

2012 Highlights

• Operated well count - Drill and complete 98 gross or 30.2 net wells.
• Non operated well count – 22 gross or 0.6 net wells.
• Completion of 22 gross or 7.7 net wells drilled in 2011.
• Holly Area – in DeSoto and Caddo Parish, Louisiana - 8 rigs
• Shelby Trough – Nacogdoches, San Augustine and Shelby Counties, Texas - 5 rigs

In the Shelby Trough area, EXCO Resources will focus drilling in areas where previous wells produced in excess of 30 million cubic feet of natural gas per day during initial periods.

QEP Resources Issues Haynesville Shale Update For The Third Quarter Of 2011

QEP Resources (QEP) released an update on the company’s operations in Louisiana where it is developing the Haynesville Shale. 

QEP Resources reported average net production of approximately 238 million cubic feet of natural gas equivalents per day from the Haynesville Shale during the third quarter of 2011.  The company is still restricting the flow rates on Haynesville Shale wells to minimize reservoir damage and believes that this will lead to higher estimated ultimate recoveries.  Other operational details:

• Year to date 2011 gross completed well costs averaged $9.1 million, down from $9.3 million in 2010.
• Year to date spud to total depth averaged 32 days in 2011, down from 37 days in 2010.
• Completed thirteen operated Haynesville Shale wells since last operational update.
• Six operated rigs working and seven operated wells either waiting or in the process of completion.
• Participated in fourteen non operated wells in the Haynesville Shale during the third quarter of 2011 that were put onto production.
• Company has eight non operated wells that are waiting on completion.

Comstock Resources Releases Haynesville Shale Update For First Quarter Of 2011

Comstock Resources (CRK) reported operational statistics and other data on the company’s Haynesville Shale activities for the first quarter of 2011. 

• Drilled 15 gross or 6.9 net wells, and completed 21 wells (operated and non-operated basis).
• Average initial production rate per well of 11.2 million cubic feet of natural gas equivalents per day.
• Seven Haynesville Shale wells are in the process of being drilled as of 3/31/2011.

Comstock Resources plans to drill 46 gross or 29.7 net wells in the Haynesville Shale in 2011, and operate four rigs.  The company will move one rig out of the areas during 2011.