Haynesville Shale

Plains Exploration and Production Company Issues Haynesville Shale Update For Fourth Quarter Of 2010

Plains Exploration and Production Company (PXP) issued an operational update on its acreage in Texas and Louisiana that is prospective for the Haynesville Shale formation. 

Plains Exploration and Production Company reported net average sales volumes of approximately 146 million cubic feet equivalent per day in the fourth quarter of 2010.  The company expects this production to grow to 160 million cubic feet equivalent per day by the end of 2011.

Plains Exploration and Production Company has now converted 65% of its acreage in the Haynesville Shale to held by production.

Comstock Resources Reports On Haynesville Shale Reserves And Production For 2010

Comstock Resources (CRK) reported a large increase in proved reserves in the year ending 12/31/2010.  The company said that the increase was due mainly to its development program in the Haynesville Shale.

Comstock Resources reported total company proved reserves of 1.051 Tcfe as of 12/31/2010.  These reserves were composed of 1.026 trillion cubic feet of natural gas and 4.2 million barrels of crude oil.  The company released the following information for 2010:

PV- 10 Value - $797.6 million - using SEC pricing of $4.16 per Mcf for natural gas and $76.31 per barrel for oil.

2010 Production – Average of 200.7 million cubic feet equivalent per day, or 73.3 billion cubic feet of natural gas equivalents for the year.

Comstock Resources said that production in 2010 increased by 12% over 2009, and was 94% natural gas.  Production in the fourth quarter of 2010 was 17.2 billion cubic feet of natural gas equivalents, or an average of 187.6 million cubic feet equivalent per day.

Comstock Resources said that the company added 402 Bcfe of proved reserves in the Haynesville Shale region in 2010.  The company generally incorporates two PUD locations for each developed well in calculating proved reserves.

Comstock Resources reported that it had 26 gross, or 22.1 net Haynesville Shale wells waiting on completion at the end of 2010.  The company said that this was due to a shortage of hydraulic fracturing capacity in the Haynesville Shale, but that this condition eased in the fourth quarter of 2010. 

Comstock Resources Comments On Haynesville Shale Operations

Comstock Resources (CRK) held a conference call on November 2, 2010, to discuss the company’s earnings report for the third quarter of 2010.  During the call, Comstock Resources made comments on its operations in the Haynesville Shale.

Comstock Resources, like many operators in the Haynesville Shale, had trouble securing enough hydraulic fracturing capacity to complete its program.  The company reported 26 uncompleted wells at the end of the third quarter of 2010.

“We continue to have strong results in our Haynesville Shale drilling program; we drilled 58 successful wells including 54 horizontal Haynesville and Bossier Shale wells in the first nine months of this year.”

“We got off track from the strong production growth we had in the first two quarters of this year, due to the unavailability of high-pressure pumping services that are needed in order for us to complete our Haynesville Shale wells.”

“We reported earlier that we have secured completion services, starting in the fourth quarter, which will allow us to timely complete the Haynesville Shale wells we are currently drilling and begin to address the backlog of 26 wells waiting on completion that we had at the end of the third quarter.”

“Despite the production setback, we are anticipating strong reserved growth this year driven by our Haynesville Shale drilling program… We think our Haynesville shale program could add 400 to 500 Billion cubic feet equivalent of proved reserves in 2010.”

“Our East Texas/North Louisiana region averaged a 134 million per day with…85 million per day coming from Haynesville Shale wells. The Haynesville wells made up 45% of our total rate.”

“We plan on releasing another rig this month from our Haynesville program and we are considering to releasing two more rigs as we determine what we want to spend on our 2011 CapEx program.”

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