Haynesville Shale

Forest Oil - Haynesville Shale Conference Call Comments

Forest Oil (FST) held a conference call to discuss earnings for the second quarter of 2010, and made comments on the company’s activities in the Haynesville Shale.

“Switching to Haynesville activity, we completed five wells during the quarter. The first three had average initial production rates of 18 million cubic feet per day. The last two wells were rate restricted at rates of 13 million to 14 million cubic feet per day in order to test the effects on long-term performance.”

“Gas supply has been influenced thus far by a frenzy of activity to hold acreage particularly in places like the Haynesville, some of which we believe will slow going into 2011.”

“In the Haynesville, we’ll continue to use resin coated prop sand. We have eliminated the use of high strength proppant on those. I think that you’re seeing the industry move away from that simply from two issues – one is availability, the second is cost.”

Source

GMX Resources Updates Haynesville Shale Operations

GMX Resources (GMXR) issued an operations update for the second quarter of 2010, and disclosed details on the company’s activities in the Haynesville Shale. The company brought onto sales six horizontal wells during the quarter, bringing its total since entering the play to nineteen gross, or 18.6 net wells.

GMX Resources reported average daily production of 47.3 million cubic feet equivalent per day during the second quarter of 2010. This was up from 35.5 million cubic feet equivalent per day in the first quarter of 2010. GMX Resources is operating two rigs in the Haynesville Shale.

GMX Resources has been experimenting with using additional proppant in Haynesville Shale wells and estimates that wells in this program will produce an extra 21% of natural gas during the first thirty days.