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.

Comstock Resources - Haynesville Shale Update - Part I

Comstock Resources (CRK) issued an operational update and provided additional information on its acreage in the Haynesville Shale. The company has acreage in several different fields in Louisiana and Texas, and drilled 13 gross, or 9.4 net wells in the first quarter of 2010. Twelve of these wells were into the Haynesville formation, and the average production rate of the wells was 14 million cubic feet equivalent per day.

South Toledo Bend

The South Toledo Bend field is located in Sabine Parish, Louisiana. The company drilled the Sustainable Forest 3#1H to the Upper Haynesville or Bossier Shale. The well was completed with a 16 stage hydraulic fracturing operation, and produced at an initial production rate of 20 million cubic feet equivalent per day.

Logansport Field

The Logansport field is located in DeSoto Parish, Louisiana. The company drilled the Horn 5 #1H well to the Haynesville Shale. The well was completed with an 18 stage hydraulic fracturing operation and a 4,669 foot lateral. The well produced at an initial production rate of 20 million cubic feet equivalent per day.

Comstock Resources drilled the Ramsey 4 #1H well to the Haynesville Shale. The well was completed with an 18 stage hydraulic fracturing operation and a 4,616 foot lateral. The well produced at an initial production rate of 15 million cubic feet equivalent per day.

Forest Oil - Haynesville Shale Update

Forest Oil Corporation (FST) reported earnings for the first quarter of 2010, and held a conference call on May 4, 2010 to discuss the results. The company made comments on its acreage in the Haynesville Shale.

“We've seen deals by offset operators in recent weeks that price Haynesville/Bossier acreage at $10,000 to $15,000 an acre depending on how you calculate it.”

“In our Haynesville/Bossier program, we added almost 17,000 net acres of land in the core during the first quarter. This increases our core acreage to almost 28,000 net acres. We currently have two wells pending completion in Red River Parish. In addition to our operated activity, we participated in two outside operated wells completed in the first quarter for average initial rates of 22 million cubic feet per day.”

“We have four rigs drilling, two in Woodardville Field in Red River Parish and two drilling in the Sabine Parish portion of the Bossier. As we have stated previously, the majority of our drilling this year is to hold leases, and we will have almost all of our land held in this play by the end of 2010.”

Source: Seeking Alpha