XTO Energy has significant acreage positions in most of the major shale plays in North America, including the Haynesville Shale. The company had 100,000 acres under net lease in the Haynesville Shale and was utilizing 3 rigs to develop this play. In 2009, XTO Energy plans to drill 15-20 horizontal wells on its acreage. XTO Energy estimates that its well costs for drilling and completion will range from $7-9 million per well in 2009. The company has an inventory of 1000-1100 drilling locations in the Haynesville Shale with a reserve potential of 2.5 Tcfe.
The economics of the basin are still good, and XTO Energy estimates that at a price of $5.00 per Mcf, the company will earn a 36% rate of return in the Haynesville Shale with the following assumptions:
Well Cost - $8 million
Gross EUR- 6.5 Bcfe
Finding and development costs - $1.58 per Mcfe.
