Barnett Shale - Barnett Shale Oil & Gas Field -
Texas Shale
Barnett Shale Cities: Forth Worth to Dallas, Southern Texas Counties
- Johnson, Hill, Bosque, McLennan, Tarrant County. The sweet spot in the Barnett Shale is between Denton and Decatur, Texas
all the way down to the Forth Worth, Texas area.
The Barnett Shale is a rock formation deep below the Texas surface which
was discovered by wildcatters in the 1950's. In 1980, technological advances enabled companies to extract natural gas
from the Barnett Shale. The Barnett Shale Field has been referred to as the biggest natural gas field in the United
States, having been proved to hold up to 5 trillion feet of Natural Gas. Some geologists forecast the Barnett
Shale Formation to hold around 30 Trillion cubic feet. The Haynesville Shale, however, is rapidly approaching greatness and is also located in Texas.
Over the years, the Barnett Shale
Natural Gas Field has been subject to new drilling technology. This technology which uses various fracturing
techniques, is used during horizontal drilling. The Barnett Shale is unique because it was the first major
operation to extract gas from shale in the US. When reading about other shale plays, the drilling companies often
adopted techniques used in the Barnett Shale.
Horizontal
Drilling is a technique used to drill horizontally after the vertical well is drilled. Hydraulic Fracturing Techniques
are used to Fracture the Shale Rock in order for the Natural Gas to get released. Drillers use millions of
gallons of water per well and machines apply the water and sand at high rates to fracture the shale.
More can be found Here
It is estimated that the Barnett Shale is more then 6,000 feet deep and VERY thick. So thick you have
to fracture the shale in stages ( Multi Stage Frac ). A horizontal well will run you anywhere between 2-3 million.
The Barnett Shale has a chance one day to produce 3-4 billion cubic feet of natural gas per day. Future development
of the Barnett Shale could be tricky as the Dallas - Fort Worth areas become heavily populated. Industry technicians
are trying to figure out ways the drill in highly populated areas without harming homes, schools, businesses, and airports.
Barnett Shale Combo Play - Oil companies and industry experts have found a new pool of
oil which is being called the Barnett Shale Combo Play. Oil & Natural Gas are both found in this region and starting
to attract some attention. As you know, Texas is home to a large oil discovery to the south called the Eagle Ford Shale. While the Eagle Ford Shale is huge, the Barnett Combo Play is getting some notice as well.
Barnett Shale 2012 - It's soon 2012 and the Barnett Shale
is showing a lot of promise. While the price of natural gas is still low, Oil prices should
jump into the $90's again on 2012. In the Barnett Shale Oil Play,, companies are finding a
lot of oil which is sparking another round of interest in the field. Expect Natural Gas prices to remain low.
Companies Involved in Barnett Shale - Barnett Shale Stocks
- Devon Energy DVN - Devon Energy (DVN) updates the Barnett Shale - The company's Barnett Shale production totaled 1.3 billion
cubic feet of natural gas equivalent per day in the third quarter, an eight percent increase over the third-quarter 2010.
Liquids production in the Barnett Shale averaged 46,000 barrels per day, a 15 percent year-over-year increase.
- EOG Resources EOG - EOG Resources (EOG) is drilling for oil in the Barnett Shale Combo Play - Operational improvements are evidenced
by individual well results in EOG's North Texas Fort Worth Barnett Shale Combo. The play was a significant contributor to
EOG's crude oil and liquids growth both during the third quarter and in the first nine months of 2011 versus the same period
in 2010. In Montague County, the Ketchum Unit #1H and #2H were brought to sales at 496 and
638 Bopd with increasing rich natural gas rates of 354 and 455 thousand cubic feet per day, respectively. Also in Montague
County, the Farrell Unit A #1H, A #2H, B #3H and B #4H began initial production at crude oil rates ranging from 335
to 475 Bopd with 1.0 to 1.4 MMcfd of rich natural gas. EOG has 100 percent working interest in these wells.
- Chesapeake Energy CHK - Chesapeake Energy (CHK) Barnett Shale - Chesapeake Energy drills for natural gas in the Barnett Shale
and has been here for many years. CHK has not mentioned anything recently that would indicate that they are drilling
in the oil window of the Barnett Shale ( Barnett Combo Play ). Stay tuned for further news.
RAM Resources RAME - Barnett Shale - Jack and Wise Counties Texas. We particpated in drilling 7.0 gross wells (3.2 net) in 2008 on our
Tier 1 Barnett Shale acrage in Wise and Jack Counties in the Fort Worth Basin of North Texas. All of these Barnett Shale
wells were completed as producers for a 100% success rate. The average 2008 net daily production rate was 515 Boe per
day (approximately 7% of our company's 2008 average daily production). We have a large acreage position within a Participation
Agreement with Devon Energy Corporation in which we have the right to participate with a 36% working interest in all wells
proposed in the contract area. A total of 19.0 gross wells (7.0 net) have been drilled since the inception of the agreement.
As of December 31, 2008 we estimated our proved reserves in our Tier 1 Barnett Shale area to be 2.6 million Boe, or 6% of
our proved reserves.
ConocoPhillips COP - In the Barnett
Shale, what we operate, we'll probably drill somewhere between 30 and 40 wells. And our partners and the things they
operate, we'll probably drill 20 to 30. As for selling acerage - We can provide a little bit of detail. We're generally
not going to be giving a lot of granularity on exactly what we sold, which packages of assets for. But the package -- but
the assets we sold in the Barnett were in the
South Barnett, which is the gassier part of the
play. And we are retaining and developing our interest in the North Barnett, which is the more liquids-rich portion of the Barnett play.
Parallel Resources PLLL - Parallell has 78 wells in the Barnett Shale area - Barnett Shale Gas Project, Tarrant County, Texas ...Leasehold
acreage in Parallel's Barnett Shale gas project consists of approximately 31,600 gross (9,300 net) acres located in and
around the Trinity River flood plain, east and west of downtown Fort Worth. At present, the project controls approximately
75 multi-well pad sites. Based on current industry practices, Parallel anticipates development drilling on 40-acre spacing.
Barnett Shale Map Texas
- Quicksilver Resources KWK- Quicksilver KWK has exposure in the Barnett Shale natural gas field
- In the Fort Worth Basin, the company drilled 22 gross (19.0 net) wells and connected 28 gross
(23.9net) wells to sales during the third quarter of 2010. The company currently has three rigs working in the basin
and expects to remain at this level through the remainder of the year. The company also currently has four hydraulic fracturing
crews working in the basin and expects to reduce its inventory of drilled-but-uncompleted wells in the Fort Worth Basin to
approximately 90 by year end.
Pioneer Natural Resources PXD - Pioneer Natural Resources PXD Barnett Shale Combo Play - In the liquids-rich Barnett Shale Combo play, Pioneer has
built a 76,000-acre position, representing more than 700 drilling locations. Pioneer is currently operating two rigs in the
play. The Company continued to see performance from new wells improve in the third quarter. Production is liquids-rich, with
approximately 75% of the production being oil and NGLs.
Production in the third quarter for the Barnett Shale Combo play
was 4 MBOEPD, up from 3 MBOEPD in the second quarter. Current production is approximately 5 MBOEPD. The Company expects production
to increase to 5 MBOEPD to 7 MBOEPD in the fourth quarter and average 4 MBOEPD to 5 MBOEPD for the full year. Current plans
call for a further increase in production to 9 MBOEPD to 12 MBOEPD in 2012, 18 MBOEPD to 22 MBOEPD in 2013 and 26 MBOEPD to
31 MBOEPD in 2014. Assuming flat commodity prices of $90 per barrel for oil and $5 per MCF for gas, estimated future production
costs, an average per-well drilling cost of $3 million and a gross EUR of 320 MBOE, Pioneer's internal rate of return in the
Barnett Shale Combo play is expected to be 40% before tax.
- Range Resources RRC - Range RRC has been drilling in the Barnett Shale - The next
project I want to discuss is the Barnett Shale
play in the Ft. Worth Basin. Range currently has about 109,000 net acres in the Barnett Shale play. 42,000 net acres are in Tarrant, Johnson, Denton, eastern Parker, eastern Hood, northwest
Ellis, and southwest Ellis counties. This is the proven part of the play and we still have over 700 locations to drill in
these areas.
In the second quarter, the Southwest Division continued its success
while running two rigs. In the Barnett Shale formation, the Company completed four wells with excellent results. In Johnson
County, two wells were completed with a combined rate of 6.0 (3.6 net) Mmcfe per day, while in Tarrant County, another two
wells were completed with combined rates of 10 (7.0 net) Mmcfe per day.
- Petroleum Development Corp PETD - Complementing PDC’s natural gas expertise is our Barnett Shale exploration
project. Located in the Fort Worth Basin of Erath County, Texas, we have an interest in nearly 8,900 net acres and are examining
development opportunities. We have acquired 3D seismic under both blocks, drilled one horizontal well, and completion operations
are expected to commence during the second quarter as construction of a pipeline by a third party is completed.
- Denbury Resources DNR - Average natural gas production from the Barnett Shale increased slightly on a sequential basis, averaging 60.4 MMcf/d
in the first quarter of 2009 (excluding natural gas liquids “NGLs”), as compared to 59.1 MMcf/d in the fourth
quarter of 2008 and 57.3 MMcf/d in the first quarter of 2008. However, during the first quarter of 2009 the Company sold a
significant inventory of NGLs which had been produced but not sold during the third and fourth quarters of 2008 due to plant
shutdowns caused by Hurricane Ike. This resulting in an increase in natural gas liquid sales from 2,389 Bbls/d in the fourth
quarter of 2008 to 4,874 Bbls/d in the first quarter of 2009. During the first half of 2008, the Company’s natural gas
liquid production averaged 3,350 BOE/d, representing a more normalized average natural gas liquid production rate per quarter.
On a BOE basis, the Company’s Barnett Shale production averaged 14,932 BOE/d in the first quarter of 2009, as compared
to 12,233 BOE/d in the fourth quarter of 2008 and 12,801 BOE/d in the first quarter of 2008. The Company’s total production
from the Barnett Shale is expected to average approximately 12,250 BOE/d during 2009, as the Company plans to drill only three
more wells in this area during 2009.
- Williams Company WMB - Williams WMB announced July 21st, 2008 that they are buying 10,000 acres in the Barnett Shale region in Texas. The assets
represent an estimated 175 billion cubic feet equivalent (Bcfe) of proved, probable and possible reserves on approximately
10,000 net acres located primarily in Tarrant, Johnson and Hood counties. At year-end 2007, Williams had an estimated
277 Bcfe of proved, probable and possible reserves in the Barnett Shale. Williams' acreage position in the play prior to this
agreement was approximately 34,000 net acres. Williams WMB now has 44,000 acres in the Barnett Shale Nautral Gas Field.
Williams has four drilling rigs operating in the Barnett Shale. The company plans to add two rigs in north Texas to begin
developing the new acreage.
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- Forest Oil FST - Forest Oil FST is has exposure to the Barnett Shale - We have also stepped
up activity in the Barnett Shale, adding a second
rig to deploy so we have one running in Hill County and now one also running in Erath. In Hill County our IPS remains in a
1.5 million to 2 million a day range.
Carrizo Oil & Gas CRZO - CRZO is active in the Barnett Shale - Since January 1st, 2009 the company has brought eleven new Barnett Shale horizontal
natural gas wells on production. The combined daily production from these wells amounts to slightly over 31.5 MMcfe/day gross
or 22 MMcfe/day net to Carrizo. President and CEO S. P. "Chip" Johnson, commented, "The initial production
rates from these wells meet our expectations for core Barnett locations although right of way and permitting complications
delayed them from coming on-stream in December as originally anticipated. Included in these new wells is our first 'stagger
stacked' lateral well which was drilled on the Cain lease in southeast Tarrant County. This well tests the concept of placing
two layers of horizontal wells in thicker parts of the shale. The well came on production and is performing as well as the
other five wells on the lease, providing us encouraging early data to use in optimizing our future Barnett exploitation program.
We currently have four rigs drilling in the core of the Barnett, three in southeast Tarrant County and one in Denton County."
Update - In the Barnett Shale, Carrizo drilled 8 wells, frac'ed and completed 12 wells, and brought 15 wells on production since
the end of the second quarter of 2009. A backlog of 33 wells are waiting on completion with an additional 6 wells waiting
on connection to sales pipelines.
