Haynesville Shale

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.

GMX Resources Thrown Out By The Market

The market has brutally sold off many exploration and production stocks with leverage to natural gas, including ones with exposure to the Haynesville Shale. This is due to the weakness in natural gas prices and the concern with large supply additions over the next year as the rig count ramps up in 2010.

GMX Resources (GMXR) has been one of the worst hit stocks in the natural gas led sell off. The company has other issues as well, but at $8.00 per share, it is now selling below its price at the bear market low in March 2009. 

Haynesville/Bossier Shale - GMX Resources Summary

GMX Resources has 42,400 net acres in East Texas that is prospective for the Haynesville Shale. This acreage is located in Harrison, Marion and Panola County.  GMX Resources plans to drill 22 gross Haynesville Shale wells in 2010.

Proved Reserves – 26 BCFE using SEC pricing

Proved Reserves – 114 BCFE using 12/31/2009 pricing

Estimated Ultimate Recovery – 6.5 BCFE

Drilling Locations – 279