Haynesville Shale

Petrohawk Energy Starts Cutting Haynesville Shale Rig Count

Petrohawk Energy (HK) reported an update on its oil and gas operations in the Haynesville Shale during the first quarter of 2011.  The company expects to have most of its leasehold held by production by the end of 2011.

Petrohawk Energy operated an average of sixteen rigs in the Haynesville Shale and drilled 84 wells during the first quarter of 2011.  The company plans to start reducing its rig count until it is operating six rigs in the play.

Petrohawk Energy also estimates that its Haynesville Shale operations will become cash flow positive by the third quarter of 2011.  The company reported net production of 607 million cubic feet of natural gas equivalents per day in the first quarter of 2011.

Petrohawk Energy Issues Third Quarter Of 2010 Haynesville Shale Update

Petrohawk Energy (HK) issued an operations update on its oil and gas activities during the third quarter of 2010.  The company reported average daily production of 434 million cubic feet of natural gas equivalents from its Haynesville Shale properties, and drilled 102 total wells (29 operated, 73 non operated) during the quarter.

Petrohawk Energy said that well costs in the Haynesville Shale in 2010 would average $10.5 million, and are expected to decrease to $9.8 million in 2011.  The company has cut its rig count over the last three months, from 16 at the beginning of the third quarter of 2010, to 12 currently.

Petrohawk Energy drilled and completed the Mendenhall 10H #1 well into the Haynesville Shale in the third quarter of 2010.  The Mendenhall 10H #1 well utilized a new design that cut hydraulic fracturing costs by $1 million per well.  The well had an initial production rate of 8.4 million cubic feet of natural gas equivalents per day.

Petrohawk Energy also established a $1.9 billion budget for drilling and completion activities in 2011.  The company has allocated $900 million of this total for development of the Haynesville Shale.

Petrohawk Energy Updates Haynesville Shale Operations

Petrohawk Energy (HK) issued an operational update on its activities in the Haynesville Shale. The company participated in 94 wells in the Haynesville Shale during the second quarter of 2010, of which 28 were operated. All the operated wells were completed under restricted production practices.

Petrohawk Energy reported that average daily production from the Haynesville Shale during the second quarter of 2010 was 386 million cubic feet equivalent per day.

Petrohawk Energy is currently drilling the company’s first well in the Haynesville Shale using a modified wellbore design that requires less pressure to conduct hydraulic fracturing operations on the well. The company estimates that if the design is successful, it would reduce well costs by $1 million. This is important because Petrohawk Energy reported a 30% increase in well completion costs since the beginning of 2010.

Petrohawk Energy reduced its rig count in the Haynesville Shale during the second quarter of 2010, and is operating 14 rigs on the play. The company is focused on converting its acreage here from term to held by production.