Haynesville Shale Formation - Company Stocks Involved
in Drilling and/or Acreage- Shreveport Shale
If you've been following the Haynesville Shale Story, you've probably noticed that the stocks of the companies involved exploded to the upside when Natural
Gas prices were soaring through the roof in 2008. Most companies that were very active in the Haynesville Shale saw
their stock prices double and triple in price. The recent decline in the stock market popped the bubble in energy prices.
This provides a great buying opportunity for the companies below. In a few years, you might see these stocks double or
triple again if natural gas prices move higher. I not only produce the Top 2009 Stock Gainer List every day I watch it closely. At one point last year, GDP & HK were near the top of this list.
Here is a more detailed list of companies drilling at The Haynesville Shale
Chesapeake Energy- CHK - Chesapeake has been making deals and acquiring more acreage in the Haynesville Natural
Gas Field. This company is pretty much the top operator here with all the knowledge and experience. They have around
800 land and lease brokers rounding up acreage for Chesapeake in the Haynesville Shale Formation. ( From Seeking Alpha ) In the Haynesville, our results continued
to be impressive. We are producing more than 80 million cubic feet of gas per day there and our two most recent wells, both
of which have the name Walton on them are producing a combined 25 million to 26 million cubic feet of gas per day. We've
have seen a dramatic reduction in leasehold values in the Haynesville
and in The Barnett. I guess, I shouldn’t use the word values, I should say costs, because the values remain very attractive to us
2009 Update:Haynesville Shale (Northwest Louisiana, East Texas):Chesapeake is the largest leasehold owner and most active driller of new wells in the Haynesville Shale play in Northwest Louisiana
and East Texas. Chesapeake and its 20% partner Plains Exploration & Production Company (NYSE:PXP) continue to experience
outstanding drilling results in the Haynesville play and have drilled and completed 49 Chesapeake-operated horizontal wells.
Chesapeake is currently producing approximately 90 mmcfe net per day (160 mmcfe gross operated) with approximately 40 mmcfe
net per day (70 mmcfe gross operated) currently curtailed from the play. The company anticipates reaching a production level
of approximately 300 mmcfe net per day (600 mmcfe gross operated) by year-end 2009. Chesapeake is currently drilling with
24 operated rigs and anticipates operating an average of approximately 28 rigs in 2009 and 36 rigs in 2010 to drill approximately
125 net wells in 2009 and 175 net wells in 2010 to further develop its 470,000 net acres of Haynesville leasehold. During
2009 and 2010, 50% of Chesapeake’s drilling costs in the Haynesville, or approximately $1.0 billion, will be paid for
by its joint venture partner PXP. The company’s estimated pre-tax rate of return from a targeted 6.5 bcfe Haynesville
Shale well drilled for $7.0 million (excluding the benefit of drilling carries) is approximately 21% assuming current NYMEX
natural gas and oil strip prices. More.........
Goodrich Petroleum - GDP - Bethany-Longstreet Field, Caddo and DeSoto Parishes, Louisiana. The Company participated in drilling
operations on six and completion operations on two Haynesville Shale horizontal wells in the field during the quarter.
Subsequent
to quarter-end, the Chesapeake Energy - Branch 11H-1 (50% WI) well was completed with an initial production rate of 15.3 MMcf
per day on a 24/64 inch choke with flowing pressure of 6,000 psi. The Chesapeake operated ROTC 1H-1 (50% WI) and Branch 2H-1
(50% WI) wells have been completed and are currently flowing back, with results expected to be released once the wells have
been fully tested and initial production rates established.
The Company and Chesapeake are currently in the process
of completing two additional Haynesville Shale horizontal wells in the field, the Bryan 25H-1 (13% WI) and the Wallace 36H-1
(37% WI), with results expected in the second quarter. The Company expects to average approximately two rigs on the joint
venture acreage for the remainder of the year, drilling a total of approximately ten gross (five net) wells.
Longwood
Field, Caddo Parish, Louisiana. The Company has participated in its second well in the Longwood field, the Exco - Sharp 1H-1
(17% WI) well, which had an initial production rate of 8.6 MMcf per day on a 30/64 inch choke with flowing pressure of 4,100
psi. The well was approximately one mile north of the Company's Percy Sharp 7H-1 (50% WI) well which had an initial production
rate of 5.1 MMcf per day.
Acreage Acquisition. Subsequent to quarter-end, the Company has acquired via farmout an additional
3,400 net acres in the Bethany-Longstreet field, in southern Caddo and northern DeSoto Parishes, and the Greenwood - Waskom
field, which is located in central Caddo Parish, north of the Company's Bethany-Longstreet field and south of the Company's
Longwood field. The Company anticipates drilling its initial well in each of the areas within six months.
Beckville
and Minden Fields, Panola and Rusk Counties, Texas
The Company has completed and is currently flowing back its initial
operated Haynesville Shale horizontal well in the Beckville field, the J.K. Williams 7H (100% WI), with results expected to
be released once the well has been tested and an initial production rate established. Goodrich
is also very active in the Cotton Valley Shale. More.........
PetroHawk Energy- HK - PetroHawk Energy HK is another big Haynesville Shale company. Haynesville Shale Leasing and Operational
Update: Petrohawk currently owns or has commitments to acquire over 300,000 net acres in what the Company believes are highly
prospective areas of the Haynesville Shale and Bossier Shale plays in Northwest Louisiana and East Texas. Approximately 50%
of the 300,000 net acre position is committed to the Company for longer than a three year lease term, extending the overall
timeframe for development of this substantial acreage position. Including acreage held by production, Petrohawk's cost
in the play currently averages approximately $5,000 per acre. Petrohawk's first well in the Haynesville
Shale, the Elm Grove Plantation (EGP) #63 (100% working interest), located in Bossier Parish, Louisiana, had an initial production
rate of 16.8 Mmcfe/d and has averaged 13.7 Mmcfe/d over the first 30 full days of production. Petrohawk's
second well in the Haynesville Shale, the Hutchinson 9-5 (91% working interest), is located in Caddo Parish, Louisiana.
The well was completed on July 29 and tested at a rate of 16.7 Mmcfe/d. Petrohawk Energy HK recently bought acreage
in the DeSoto Parish area. PetroHawk is also active in the Cotton Valley Formation. 2009 Update: Petrohawk utilized eight horizontal rigs on average in the Haynesville Shale during
the first quarter, not including spudder rigs. A total of 15 operated and 16 non-operated wells were drilled. Of the operated
wells, 11 were on production at the end of the quarter. Additionally, five operated wells drilled in late 2008 were put on
production, bringing the total number of Haynesville Shale wells completed by the end of first quarter to 28. The average
initial production rate for operated wells completed during the quarter ranged from 3.3 Mmcfe/d to 24.8 Mmcfe/d, averaging
17.1 Mmcfe/d. The average initial production rate for all operated Haynesville Shale completions to date, excluding two previously
reported wells that were mechanically compromised, is approximately 18.0 Mmcfe/d More.........
Devon Energy DVN - Shifting to the Haynesville Shale, I'll remind you that Devon has about 570,000 net acres in the greater Haynesville trend, roughly equally divided between Texas and Louisiana.
The highest
rate wells drilled to-date by the industry have been in an apparent sweet spot in Louisiana near the intersection of Red River,
Bossier and DeSoto Parishes. These wells tend to come on at high rates, some at more than 20 million per day and then decline
very quickly as much as 85% in the first year with reported recoveries of approximately 7.5 Bcf per well.
We own the
minerals under most of our acreage in eastern Louisiana and much of the acreage in Texas is held by production. So, for the
majority of our acreage, we don't face near-term lease expiration issues. The order of attack in evaluating our Haynesville position is dependent upon a variety of
factors, including where we have existing infrastructure, where we have lease expiration issues and where acreage we view
as most perspective.
To-date, we have drilled five Haynesville
Shale horizontal wells, all in our Carthage area of East Texas. As we previously reported, the first two wells suffered casing
failures, but we solved those problems in the next three wells which we completed during the first quarter.
More.........
XTO Energy- XTO - XTO Energy recently made an acquisition of Hunt Petroleum which will bring XTO energy into the Haynesville Shale formation
play. With this Hunt Petroleum buyout, XTO will gain acreage positions in East Texas, North & Central Louisiana
Haynesville Shale areas. The deal is supposed to close September 2008. Going into this deal, we have identified
hundreds of locations to expand recovery and access the multi-pay targets – including the Pettit, Rodessa, Travis Peak,
Cotton Valley and Bossier formations.” XTO Energy now has 100,000 Haynesville Shale Acres. XTO wants to pick up additional acreage and drill 3-4 horizontal wells
by the end of the year. XTO 2009 Update: We drilled first Haynesville shale well in
western Panola County, the New Horizon's number one that came in at 8.5 million a day, that is not an IP, that well averaged
over 8 million a day for the first 15 days. If we go from that to Stockman Fields in Shelby County, we drilled our first
Haynesville lime wells, before other companies
talked about this area it came in at 10 million a day. We have pretty extensive acreage position down there for development
as well. And then we brought in two James Lime horizontal wells at around 5 million a day in that same Shelby County area,
so we're pretty excited about that stuff More.........
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Forest Oil Company- FST - East Texas/North Louisiana Area – Haynesville/Bossier – Since the beginning of 2009, Forest has
drilled four horizontal Haynesville/Bossier shale wells in the East Texas/North Louisiana corridor, three in Harrison County,
Texas and one in Red River Parish, Louisiana. The three wells that have been completed had an average initial production rate
of 8 MMcfe/d with the fourth well waiting on fracture stimulation. An additional well is drilling to test the Cotton Valley/Haynesville
Lime in Sabine Parish. Forest has approximately 140,000 gross (127,000 net) acres in the Haynesville/Bossier play. Forest
Oil is also active in the Cotton Valley Formation. More.........
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Exco Resources- XCO - Exco Resources XCO is a new company getting into the Bossier/Haynesville Shale
play in a big way. During the first quarter 2009, our horizontal Haynesville Shale development program yielded exceptional
results with some of the highest production rates in the play. We also achieved significant improvements in operational efficiencies.
We drilled and completed 3 gross horizontal (2.9 net) Haynesville wells during the first quarter 2009. We utilized four operated
drilling rigs and one operated spudder rig in the quarter, and we spud seven operated horizontal wells and two non-operated
horizontal wells. We currently have six operated horizontal wells and two non-operated horizontal wells flowing to sales.
Production from our Haynesville wells recently reached a combined gross rate of 96 Mmcf per day (48 Mmcf per day net). In
addition to our operated rigs, we currently have one non-operated rig drilling in the play. We will add three additional operated
horizontal rigs by mid 2009, bringing our operated horizontal rig count to seven, and we remain on schedule to drill 34 horizontals
(27 operated) in 2009. A brief summary of our achievements to date are shown below:
Oden 30 H #6 (100% WI) DeSoto Parish,
Louisiana - Initial production (IP) 22.9 Mmcf per day, 7,800 psi on 26/64ths choke in December 2008. Produced 1.0 Bcf in first
64 days. Currently flowing 8.9 Mmcf per day with 4,200 psi after 149 days with cumulative production of 1.9 Bcf.
Lattin 24 #4 (92.8% WI) DeSoto Parish, Louisiana
- IP 24.2 Mmcf per day, 7,350 psi on 26/64ths choke in February 2009. Produced 1.0 Bcf in first 67 days. Currently flowing
10.8 Mmcf per day with 5,200 psi after 82 days with cumulative production of 1.2 Bcf.
XCO is active in the Cotton Valley Field. More.........
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Cabot Oil & Gas- COG - Cabot COG in June acquired additional Haynesville Shale assets - 25,000 acres
in East Texas. These properties were acquired by Cabot to realize significant growth in production and reserves
and also to capture additional opportunity to exploit the Bossier/Haynesville. "Cabot has drilled 77 wells in the Minden
area on its 12,700 acres with a 100% success rate since our initial discovery in 2006. The acquired acreage lies in immediate
proximity to our existing acreage, which enhances our ongoing development of the Pettet, Travis Peak and Cotton Valley formations. There is also significant incremental exposure to the emerging Bossier/Haynesville opportunities. Update - Cabot's East Texas program continues to adjust to the new activity
around County Line. The Company remains committed to the $475 million program for 2009, 47 percent of which is for East Texas.
The Company has recently adjusted its drilling schedule to include a horizontal Haynesville Lime well at Minden and a horizontal
Haynesville Shale well at County Line. "These wells will further delineate the lime and the shale," commented Dinges.
"The horizontal shale well is designed to exploit the successful test of the vertical Von Goetz #3 well.".
Berry Petroleum- BRY - Berry BRY made a deal in June for Haynesville Shale and Bossier Shale assets which includes 4,500 acres in east Texas.
The properties have estimated proved reserves of 335 billion cubic feet equivalent, 29 percent of which are proved developed
reserves. Upon closing, the acquisition will add about 32 million cubic feet equivalent per day to Berry's production.
.
Encana- ECA - Encana ECA recently announced that they have established acreage positions in the Haynesville Shale. The Deep
Bossier continues to be a leading near-term driver of EnCana's future production growth in East Texas. We strengthened
our position in the Haynesville gas resource play by acquiring 25,000 net acres, increasing our land position to about
400,000 net acres, plus 63,000 net acres of mineral rights. We currently have six rigs running with a focus on cost reduction and completion optimization. We will target drilling
and completing the first well in the mid-Bossier shale in the fourth quarter The Haynesville Shale is a very exciting emerging
play with a potential to rival the quality and scope of the Barnett shale play. With the few number of wells that were drilled in the Haynesville
so far, we've seen, and some of our competitors or industry competitors, have seen initial production rates which
are in the order of twice that of the ... some of the best wells ever drilled in the
Barnett Shale play. More.........
2009 Update: We now expect to drill a total of 50 net wells in the play for 2009. We believe that the Haynesville will be one of the most important pieces in the future of EnCana’s
gas production.
EOG Resources- EOG - Testing the Haynesville Shale in North Louisiana, EOG drilled two horizontal wells on its acreage during 2008.
The Martin Timber #2H tested at a rate of 17.4 million cubic feet per day (MMcfd), gross with 4,700 psi flowing tubing pressure.
The Bedsole 27#1H tested at a rate of 17.5 MMcfd, gross with 7,400 psi flowing tubing pressure. EOG has 100 and 57 percent
working interest in the wells, respectively. Due to pipeline limitations, the wells are currently producing at a combined
restricted rate of 17 MMcfd until additional infrastructure is in place. EOG has estimated net reserve potential of 3 to 4
trillion cubic feet of natural gas on its 116,000 net acres and expects to drill 14 Haynesville wells in 2009.
Penn Virginia PVA - Penn Virginia PVA has had success drilling the Haynesville Shale in East Texas
- During the first quarter of 2009, we drilled six (6.0
net) operated and one (0.5 net) non-operated Lower Bossier (Haynesville) Shale horizontal wells. Of the wells drilled, six
(5.5 net) wells were successful and one (1.0 net) well (Agnor #6-H) was unsuccessful, as announced in March. Production in
the first quarter averaged 40.9 MMcfe per day, 35 percent higher than the 30.3 MMcfe per day produced in the first quarter
of 2008 and 10 percent higher than the 37.2 MMcfe per day produced in the fourth quarter of 2008. The production increases
were entirely attributable to initial contributions from the Lower Bossier shale play for which there was no production in
the prior year quarter. Over the past twelve months, we have tested the Lower Bossier potential across most of our acreage
position in East Texas. We have been encouraged by the results of the horizontal drilling program and have concluded that
the majority of our acreage warrants an active development program going forward. To date, we have completed and are producing
from 13 operated horizontal Lower Bossier wells. The average initial production rate for the 13 producing wells is 5.0 MMcfe
per day and the total gross production rate is currently 20 MMcfe per day for these wells. Initial production rates for the
six operated wells completed during the first quarter ranged from 2.8 to 8.3 MMcfe per day with an average of 5.4 MMcfe per
day. The completions averaged eight fracture stages with an average lateral length of approximately 3,500 feet. PVA
is also active in the Cotton Valley field.
GMX Resources- GMXR - GMX Resources will start to drill the Haynesville Shale this
month. GMX has 43,032 net operated acres including 38,455 acres of Haynesville/Bossier shale giving them the most Haynesville
shale acres per share as compared to all other public companies. GMX has major drilling locations in Texas: Harrison,
Marion, Cass Counties - In Louisiana: Caddo Parish. The Company will complete its first Haynesville/Bossier
horizontal well in late November, 2008. Two operated rigs are currently drilling the H/B and should reach TD in late December.
Two more operated rigs will spud H/B wells in the fourth quarter. Four rigs in our operated area will be drilling H/B wells
going into 2009. The first 17 permitted H/B horizontals will average 3,700 foot laterals and 12 stage fracture treatments.
The Company continues to drill CVS vertical wells with two operated additional rigs. This shift in drilling focus to H/B from
the CVS and the extended drilling time for horizontal wells will bring our planned wells to 93 gross/64.55 net wells for 2008.
More.........
Anadarko Petroleum APC - Anadarko has more than 80,000 net acres in the prospective
fairway of the Haynesville Shale, the majority held by production underneath our
producing fields in the Carthage area in Texas and Elm Grove in Louisiana. Anadarko drilled and completed
three vertical Haynesville exploration wells, two of which were cored, during the 4 Qtr with encouraging results. The
first horizontal test is currently drilling, with results expected in the 1 Qtr.of 2009
Questar STR - Questar believes they are drilling in the sweet spot of the Haynesville Shale - ( From Seeking Alpha ) - We now have seven Questar operated rigs in Northwest Louisiana. That's down from 16 rigs last winter. With our revised
2009 capital program, we plan to drill or participate in 35 Haynesville Shale wells in 2009. And on that front we've got good news to report this morning from both
our ongoing evaluation of the Haynesville Shale
play, and horizontal drilling in the Lower Cotton Valley formation in Northwest Louisiana.
In late January, we returned to our third Questar operated Haynesville well to sales, the Golson 32H. This well is flowing 23 million cubic feet per day.
In addition, this past weekend we turned our fourth Questar E&P operated well, our 83% Shelby 31H well to sales,
at an initial rate of over 20 million cubic feet a day, and again with very high flowing pressure. These early results, combined
with results reported by other operators on wells in which we have a working interest, continue to suggest that our nearly
31,000 net acres could be in the sweet spot of the Haynesville
play.
You'll note from the new Haynesville
slides on our website that some of the best Haynesville
wells drilled to date have been on or near our acreage Questar is also involved in the Cotton Valley Field.
SandRidge Energy SD - Sandridge is active in the East Texas side of the Haynesville Shale -
East Texas/North Louisiana – Haynesville Shale Play:
The company controls approximately 36,000 acres
in the developing Haynesville shale play of East Texas and North Louisiana. About 22,500 acres of that
total are in Rusk and Harrison Counties, Texas. The company drilled two vertical test wells within the
Oakhill field area in Rusk County to evaluate the potential for Haynesville shale production. The initial
well had a total of 260 feet of Haynesville shale thickness and tested at a rate of 1.5 MMcfe per day.
The second well encountered 288 feet of shale thickness and is awaiting completion.
Plains Exploration PXP - The Haynesville Shale continues to deliver outstanding drilling results with 49 horizontal wells drilled and
completed. Production is currently 21 million cubic feet equivalent (MMCFE) per day net to PXP (160 MMCFE per day gross) with
approximately 9 MMCFE per day net to PXP (70 MMCFE per day gross) currently curtailed from the play.
Continental Resources CLR- Continental CLR is a new operator in the Haynesville Shale. They currently have 17,000 acres in Louisiana but are
not saying what parish they are in. They will be drilling their first well in the fourth quarter.
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Nabors Industries NBR - Nabors NBR supplies drilling rigs to Haynesville Shale companies/operators. We have 32 rigs
now working in the Haynesville Shale, compared to 20 at the beginning of the year, and we expect to have 40 or 50, probably closer
to 50 by the end of the year. Also, we have kind of a unique advantage, if an operator needs a rig, and he really wants a
built for purpose specialty design new build, and he needs a good rig right away, we can give him a rig to bridge the gap
between his requirements right now and when he will get the new build which could be 9, 10, 11, 12, 13 months from now.
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Encore Aquisition - EAC - Encore elected to exercise its preferential right to purchase the interest of its partners in its Greenwood
Waskom/Stateline prospect for total consideration of $54 million subject to customary closing adjustments. The Company closed
the acquisition July 15, 2008 and will immediately take over operations on five units currently producing from the Cotton
Valley formation. Encore will also acquire the Haynesville rights in each of these units. Encore's average working interest
and net revenue interest will be approximately 92 percent and 72 percent, respectively. This acquisition will add approximately
3,200 net acres to Encore's existing 12,800 net acres in the heart of the Haynesville play, giving Encore a total of 16,000
net acres. Encore also owns approximately 6,600 net acres in the rapidly expanding extensional area of the play for a total
of 22,600 net acres in the Haynesville play. Encore is currently permitting locations and expects to add a rig to begin developing
its acreage in the Haynesville play in late 2008.
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St. Mary Land & Exploration- SM - St. Mary SM is active in the Cotton Valley field as well as the Haynesville Shale under the Cotton Valley. In the Haynesville shale program, the Company is currently drilling its second well targeting the Haynesville
shale formation. The well is located in northern San Augustine County, Texas. After coring the James lime and Haynesville
shale sections, this well will be drilled to the deeper Haynesville/Cotton Valley lime formation for evaluation purposes.
St. Mary currently expects to complete the well as a vertical Haynesville shale test. One additional well targeting the Haynesville
shale is planned for later in 2009.
Cubic Energy QBIK- Cubic QBC recently announced some key developments in their Haynesville Shale natural gas formation. The Estes
7 No. 1 is Cubic’s fourth Haynesville Shale well in its northwest Louisiana acreage, the Company will be able to drill
horizontally in the Haynesville Shale at a later date, after being vertically completed in the Haynesville Shale. The
Estes 7 No. 1 is Cubic’s first Haynesville Shale well to be drilled in the Company’s southern acreage position
of Bethany Longstreet.
Immediately following the drilling of the Estes 7 No. 1, the
Company will rig down and move to the Red Oak Timber 5 No. 1 also located in Cubic’s southern acreage of Bethany Longstreet.
Update - QBC spuds 5th well - The Red Oak Timber 5 No. 1 spud on Friday, August 1, 2008 and will be vertically drilled to approximately
11,950 feet using a casing program with 7 5/8” for the intermediate string. This will allow the Company
to drill horizontally in the Haynesville Shale at a later date, after being vertically completed in the Haynesville Shale.
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Mainland Resources MNLU- MNLU announced a joint venture with PetroHawk Energy HK regarding Mainlands 2,695 acres in East Holy Field, Desoto Parish.
PetroHawk will pay 100% of the cost to drill the first well in the Cotton Valley Formation and 80% of the second well.
For all of the other wells, PetroHawk will pay 60% of the cost and Mainland will pay 40%.
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Noble Energy NBL- NBL has a 25% working interest in their Haynesville Shale well. In the Caspiana field we are participating our first
horizontal Haynesville well, which is currently being completed. Initially drilling results were encouraging with continuous
shows while drilling the haynesville well section. East Texas and North Louisiana — Noble Energy’s
acreage position in the East Texas/North Louisiana area has recently expanded to nearly 20,000 net acres. In 2008, the Company
plans to drill approximately 35 wells primarily focused on the James Lime, Travis Peak, and Cotton Valley horizons, with future
potential in the Haynesville play.
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Marathon Oil MRO- MRO is new to the Haynesville Shale - Marathon has 25,000 acres in the Haynesville Shale in Louisiana and
Texas and will start drilling in 2009.
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Southwestern Energy SWN- SWN announced the signing of a 50/50 joint venture agreement with a private company to drill two wells targeting the Haynesville/Bossier
Shale intervals in Shelby and San Augustine Counties, Texas. A portion of the company's acreage in its Angelina River
Trend area (approximately 41,500 gross acres) in Shelby, San Augustine and Nacogdoches Counties is included in the joint venture.
In 2009: Southwestern plans to invest approximately $110 million in East Texas, where it expects to participate
in approximately 40 wells, 34 of which are planned to be horizontal wells targeting the James Lime formation.
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Comstock Resources CRK - Comstock reported on its Haynesville Shale program in East Texas and North Louisiana. The Company is very encouraged
with recent results from its horizontal wells after changing its completion techniques. Comstock's first Haynesville Shale
horizontal wells utilized a formation stimulation process that utilized cross-linked heavier gel frac fluids and 20/40 ceramic
proppants. Based on results that other operators had achieved, Comstock modified the formation stimulation process to primarily
non-cross linked lighter frac fluids (slick water) and smaller 40/70 resin coated sand or ceramic proppants. Initial production
results from wells using the new completion method were notably superior to wells using the old method.
The two wells drilled
in the first quarter completed with the old method were the Bogue A #6H well drilled in the Waskom field in Harrison County,
Texas and the Hart #1H drilled in the Logansport field in DeSoto Parish, Louisiana. The Bogue A #6H was drilled to a vertical
depth of 10,858 feet with a 2,600 foot horizontal lateral. The well was completed with seven frac stages and was tested at
an initial production rate of 7.4 MMcfe per day. Comstock has a 100% working interest in this well. The Hart #1H was drilled
to a vertical depth of 11,553 feet with a 3,770 foot horizontal lateral. The well was completed with ten frac stages and was
tested at an initial production rate of 7.2 MMcfe per day. Comstock has an 88% working interest in this well. The Moneyham
#1H in the Longwood field in Caddo Parish, Louisiana used the cross-linked heavier gel frac fluids but used smaller 40/70
proppant. The Moneyham #1H was drilled to a vertical depth of 10,572 feet with a 3,840 foot horizontal lateral. The Moneyham
was completed with ten frac stages, however during clean-out operations coiled tubing was lost in the well lateral. The well
subsequently tested at an initial production rate of 6.6 MMcfe per day. Comstock has a 100% working interest in this well.
Comstock
has completed three wells using the new completion method. The Headrick #1H and the Holmes A #1H were drilled in the Logansport
field in the DeSoto Parish, Louisiana. The Headrick #1H was drilled to a vertical depth of 11,525 feet with a 4,060 foot horizontal
lateral. The well was completed with ten frac stages and was tested at an initial production rate of 15.1 MMcfe per day. Comstock
has a 100% working interest in this well. The Holmes A #1H was drilled to a vertical depth of 11,442 feet with a 4,010 foot
horizontal lateral. The Holmes was completed with ten frac stages and was tested at an initial production rate of 16.2 MMcfe
per day. Comstock has a 78% working interest in this well. Comstock's most recently completed Haynesville well is in its
Toledo Bend North field in DeSoto Parish, Louisiana. The BSMC 12 #1H was drilled to a vertical depth of 11,535 feet with a
4,135 foot horizontal lateral. This well was completed with ten frac stages and was tested with an initial production rate
of 11.6 MMcfe per day. Comstock has an 88% working interest in this well.
Comstock has scheduled the completion of four
Haynesville horizontal wells, the Green #13H in Harrison County, Texas and the Broome #1H, Caraway #3H and the Colvin-Craner
#2H in DeSoto Parish, Louisiana. Comstock currently has five operated horizontal Haynesville Shale wells drilling and is participating
in four non-operated horizontal Haynesville Shale wells.
In addition to the Haynesville Shale wells drilled in the East
Texas/North Louisiana region in the first quarter, Comstock drilled three (2.2 net) successful horizontal wells targeting
the Cotton Valley Taylor Sands. These wells were drilled in the Blocker and Waskom fields in Harrison County, Texas and were
tested at an average per well initial production rate of 4.2 MMcfe per day. Comstock also drilled two (1.4 net) successful
vertical wells in its Logansport field in DeSoto Parish, Louisiana which were tested at an average per well initial production
rate of 1.6 MMcfe per day.
Crosstex Energy XTXI - Crosstex XTXI has been drilling in Haynesville Shale. Prime locations in the Haynesville Shale included Harrison
County, Texas for XTXI
El Paso EP - El Paso continues to drill in the Haynesville Shale - ( From Seeking Alpha ) - We have an update for our Cotton Valley horizontal and Haynesville programs in the Arklatex.
El Paso Haynesville Shale Production -We started out below 10 million a day per well. And our most recent
well, the Blake 10H produced over 20 million a day, after 10 stages of fracs in the lateral. We’ll probably keep two
to four rigs running in the Arklatex that are capable of drilling these kind of wells, and we can drill somewhere in the neighborhood
of 15 to as many as 25 Haynesville wells this
year in 2009.
Unit Corp UNT - In the Haynesville trend in East Texas
we've now drilled five vertical wells in Shelby County. And we have two of the five wells hooked up to gas lines. Their
early production from these vertical wells on the first two wells has been somewhat disappointing, but certainly not conclusive
at this point. Both wells are currently flowing about 100 Mcfe a day and are experiencing some water loading problem.
We'll start drilling our first horizontal Haynesville well later this month and we'll plan to keep one or two Unit bridge drilling in the Haynesville in the Shelby County area during the third quarter of this year.
In
addition to the Shelby County activity, in addition to our activity, another operator has just announced plans to drill the
horizontal Haynesville well that's just adjacent
to our acreage block and this should also give us additional information and to evaluate our block.
The current plan
for 2009 is to drill a total of approximately nine vertical wells and one horizontal well in Shelby County at an approximate
cost of $25 million.
In addition to the Shelby County, Haynesville, we also plan on drilling three vertical Haynesville wells in Harrison County, at an approximate cost of $6.5 million. .
