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Encana (ECA) - Encana ECA provides their haynesville shale update - At Haynesville, drilling and completions efficiencies continue to
improve in both the company’s resource play hub development model and its remaining lease retention program. Encana
received regulatory approval to drill additional long-reach horizontal wells in North Louisiana – a well-established
technique that very effectively reduces supply costs and the number of wells required to produce an equivalent volume of natural
gas. In the third quarter, Encana drilled two horizontal wells in the Sabine area of East Texas and two in the Haynesville
in Louisiana. These wells are among the longest horizontal wells drilled in the region, averaging a horizontal length of 7,500
feet. One of the Haynesville wells surpassed 8,000 feet lateral length and a Sabine well reached a record measured depth of
22,350 feet. Each well is expected to have more than 30 completion stages – work that is planned for the fourth quarter
of 2011.
Anadarko Petroleum (APC) - Anadarko Petroleum (APC) Haynesville Shale: Anadarko’s average
sales volumes for the quarter were 34 million cubic feet equivalent per day (MMcfe/d), a 56% increase over the 2nd quarter
of 2010. The company’s 20-stage completion design has increased the estimated EUR of the wells in the Oak Hill area
from about 3.5 Bcf to more than 6 Bcf per well, while the well costs remained essentially flat, resulting in a dramatic improvement
in well economics.
Forest Oil (FST) - Forest Oil Updates Investors on the Haynesville Shale - Forest recently moved a rig to its acreage in the Haynesville Shale.
The decision was made to re-enter the play as a result of positive performance from its restricted rate production program
from the seven wells drilled in 2010 and reductions in drilling and completion costs in the region. The seven wells drilled
in 2010 have produced at an average rate of 8 MMcfe/d during their first 240 days of production and, at the end of the 240
days, had an average flowing pressure of approximately 4,300 psi. Forest now believes that the estimated ultimate recovery
from these wells should exceed the 6.5 Bcfe type curve. Forest recently completed its first well in the area in 2011, which
had an initial restricted rate of approximately 12 MMcfe/d with a flowing pressure of approximately 8,640 psi. The performance
from this most recently completed well is consistent with other rate-restricted wells drilled in 2010.
EXCO Resources (XCO) - Exco Resources (XCO) Haynesville Shale Update 2011 - Haynesville/Bossier Shale
Our horizontal Haynesville shale development program continues to yield outstanding results. As of October 16, 2011, our
Haynesville/Bossier operated production was 1,243 Mmcf per day gross (395 Mmcf per day net) and with the addition of our OBO
wells, we had 419 Mmcf per day of net production. We continue to focus our activities in two main development areas. Our development
program in DeSoto Parish, Louisiana is focused on manufacturing on 80-acre spacing. Our program in San Augustine and Nacogdoches
Counties, Texas is focused on delineation and testing of our acreage. We continue optimizing our operations with efforts to
reduce costs and improve our estimated ultimate recoveries. During 2011, we plan to drill 243 gross (70.7 net) wells
in the Haynesville/Bossier shale play in East Texas/North Louisiana. Of these 243 wells, 173 gross wells are operated by EXCO.
During the third quarter 2011, we drilled and completed 50 gross (19.7 net) operated horizontal Haynesville and Bossier wells
and participated in 12 gross (0.3 net) OBO Haynesville horizontal wells. We utilized 22 operated rigs and spud 39 operated
horizontal wells. In addition to our operated rig count, we typically have 3-6 OBO rigs drilling in the play. During the quarter,
nine OBO wells were spud. We currently have 264 operated horizontal wells and 144 OBO horizontal wells flowing to sales. The
average initial production rate (“IP”) during the quarter from all of our operated Haynesville horizontal wells
in DeSoto Parish was 18.9 Mmcf per day on a managed drawdown/restricted choke program. Our manufacturing approach for simultaneous
drilling followed by simultaneous completions by unit is being successfully implemented. We currently have 19 units fully
drilled, completed and flowing to sales on 80-acre spacing and expect to have 25 units fully developed by year end. During
the course of 2011, our average well costs in DeSoto Parish have decreased from $9.9 million in the first half of 2011 to
$9.6 million in the third quarter of 2011. These cost improvements include more efficient pad and road utilization and construction
processes, drill bit design changes and more efficient completion design and implementation processes. We acquired
our Shelby area assets in May 2010 with total gross production of 34 Mmcf per day gross from eight operated wells. Our Shelby
area is currently producing 224 Mmcf per day gross from 49 operated wells. Results from our testing and delineation program
in this area are encouraging. During the third quarter 2011, we completed three Haynesville wells in the deeper part of the
play in Nacogdoches County, Texas with average IP rates of 28 Mmcf per day with average flowing pressures of 10,300 psi on
26/64ths chokes. These wells are performing above our original expectations. The wells in this area are approximately 19,700
feet measured depth with an average completed lateral length of approximately 4,700 feet. We have made significant progress
in 2011 in the drilling performance in the Nacogdoches County area of the play. Our initial wells in the first half of 2011
were averaging 63 days from spud to rig release and our most recent wells in the second half of 2011 are averaging 55 days,
a 13% reduction in time. We drilled and completed our second horizontal Middle Bossier test well in the Shelby area during
the third quarter 2011 with an IP rate of 27 Mmcf per day from a 13 stage fracture stimulation treatment. The Middle Bossier
performance is also above our original expectations. We currently have a total of seven operated rigs running in the Shelby
area.
Plains Exploration (PXP) - Plains Exploration & Production PXP Haynesville Shale Update - In the Haynesville Shale asset area,
PXP's primary operator is currently operating 21 rigs down from 31 rigs reported in August 2011.
Third-quarter daily sales volumes averaged approximately 201.3 million cubic feet equivalent (MMcfe) per day net to PXP compared
to 181.7 MMcfe per day net to PXP in the second-quarter 2011. The rate of increase in sales volumes is anticipated to slow
as the rig count continues to decline over the remainder of this year.
Comstock Resources CRK - Comstock Resources (CRK) is drills both Haynesville Shale & Bossier shale wells. In the East Texas/North Louisiana region, Comstock has drilled 52 wells (21.6 net) in 2011, 51 of which were Haynesville
or Bossier shale wells. During the first nine months of 2011, Comstock
completed 65 (35.7 net) of its Haynesville or Bossier shale
wells. Wells completed in the first nine months of the year were put on production at an average per well initial production
rate of 10 MMcfe per day. As of September 30, 2011, Comstock
had 21 (8.9 net) Haynesville or Bossier wells waiting on
completion, down from 35 wells (23.4 net) at December 31, 2010.
Cabot Oil & Gas COG - Cabot Oil & Gas (COG) is active in the Haynesville Shale - At the Haynesville area, Cabot
has signed two deals with industry peers that provide the Company with a carried interest in the initial well for 24 units.
In the third deal, Cabot has elected to sell several non-operated units producing 4 Mmcf
per day. This deal is signed and under the normal due diligence evaluation. Closing is scheduled for early May with approximately
$50 to $55 million in proceeds expected from all these transactions.
SM Energy (SM) - SM Energy (SM) comments on the Haynesville
Shale in 2011 - During the quarter, SM Energy maintained activity
in its operated Haynesville position in San Augustine County, Texas, using a two (2) rig program. Due to strong well results
and the presence of additional highly prospective up-hole intervals, the Company has decided to continue drilling its acreage
in East Texas until the acreage is held by production, which it believes can be achieved by the third quarter of 2012 with
a one (1) drilling rig program.
Comstock Resources CRK - In the East
Texas/North Louisiana region, Comstock has
drilled 15 wells (6.9 net) in the first quarter of 2011, all of which were Haynesville or Bossier shale wells. During 2011's first quarter, Comstock has
completed 13 operated and 8 non-operated Haynesville or Bossier shale wells which have been put on production at an average per well initial production
rate of 11.2 MMcfe per day.
Goodrich Petroleum (GDP) - Goodrich Petroleum (GDP) updates the Haynesville Shale and East Taxes properties - Angelina River Trend, Nacogdoches and Angelina Counties, Texas
The Company is scheduled to spud its next well in the field, the ACLCO 1H (100% WI), late November, with an expected completion
date in January. Cotton Valley Taylor Sand, South Henderson Field, Rusk County, Texas Since
the end of the third quarter, the Company completed the following two Cotton Valley Taylor Sand wells at an average 7,854
Mcfe per day (15% oil/condensate): Rayford - Siler No. 1H (100% WI), a 4,331 foot lateral with 13 frac stages, at a
24-hour peak production rate of 7,997 Mcfe per day, comprised of 6,943 Mcf and 176 barrels of oil per day; Crow - Holland 1H (100% WI), a 5,011 foot lateral with 15 frac stages, at a 24-hour peak production rate
of 7,712 Mcfe per day, comprised of 6,398 Mcf and 219 barrels of oil per day.
PetroQuest Energy (PQ) - PetroQuest Energy (PQ) Cotton Valley/Haynesville Shale Update - In East Texas, the Company's
second Classic operated horizontal Cotton Valley well (NRI-20%) was recently completed and
achieved an initial 24 hour gross daily production rate of approximately 3,800 Mcf of gas and 250 barrels of liquids. This
initial rate was curtailed on a 28/64th inch choke to prevent this well from shutting-in existing production in the area.
Once additional gathering facilities are in place during the third quarter, the Company expects line pressures to be reduced
and field production will be restored. The Company recently spud its third Classic operated horizontal Cotton
Valley well (WI-29%) and the Company's first Chevron operated horizontal Cotton Valley
well (WI-50%) has reached total depth. Additionally, the Company's first operated horizontal Cotton
Valley well (WI-50%) is nearing total depth and the Company expects completion activities on these wells will commence
during the summer.
GMX Resources (GMXR) - GMX Resources (GMXR) Haynesville Shale, East Texas Oiul - Production for third quarter of 2011 was 6.1 Bcfe, an
increase of 32% over the 4.7 Bcfe of production in the third quarter of 2010. The Company completed one Haynesville/Bossier
("H/B") Hz well during the third quarter of 2011.
Production increased by 54% to 18.7 Bcfe in the
first nine months of 2011 compared to 12.2 Bcfe in the first nine months of 2010.
In the current natural gas
commodity price environment, the Company has elected to temporarily suspend its H/B Hz drilling until natural gas prices and/or
completed well costs support more economical development. The Company completed its eighth and final 2011 H/B Hz well in the
third quarter of 2011. Completed well costs in the H/B for third quarter of 2011 were approximately $8.6 million, which is
unchanged from the second quarter of 2011.
The Company's full year production guidance is expected to be in
a range of 23.2 Bcfe to 24.0 Bcfe, with the midpoint of 23.6 Bcfe representing an increase of 35% from the 17.5 Bcfe in production
for 2010.
The Company is currently conducting a 3D seismic shoot ("Crossroads") of 33 square miles,
covering almost all of the Company's contiguous operated acreage in Harrison County, Texas, to aid in a more complete assessment
of several oil targets and proven natural gas developments. The Crossroads shoot is expected to be completed in the fourth
quarter of 2011. Our remaining 2011 drilling capital expenditure budget on oil development in the Bakken, Niobrara and other East Texas oil targets.
Cubic Energy (QBC) - Our corporate strategy with respect to our asset acquisition and development efforts was to position the
Company in a low risk opportunity while building main stream high yield reserves. The acquisition of our Cotton Valley acreage
in DeSoto and Caddo Parishes, Louisiana, put us in a reservoir rich environment both in the Cotton Valley and Bossier/Haynesville
Shale formations, and gives us the potential to discover additional commercial horizons that can add value to the bottom line.
We have had success on our acreage with wells drilled by achieving production from not only the Cotton Valley and Bossier/Haynesville
Shale formations, but also the Hosston formations.
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