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 2010 Stock Gainer List every day I watch it closely. Below is a list of public companies that are drilling in the haynesville shale.
Chesapeake Energy - CHK - Haynesville and Bossier shales (Northwest Louisiana, East Texas): Chesapeake is the largest leasehold owner, largest producer and most
active driller of new wells in the Haynesville Shale play in Northwest Louisiana and East Texas. Chesapeake owns approximately
530,000 net acres of leasehold in the Haynesville Shale play, under which approximately 195,000 net acres is prospective for
the Bossier Shale. On its Haynesville and Bossier leasehold, Chesapeake estimates it has approximately 2.9 tcfe of proved
reserves (based on the 10-year average NYMEX strip prices at June 30, 2010) and 23.7 tcfe of risked unproved resources.
The
company has drilled and completed 252 gross Chesapeake-operated horizontal wells in the Haynesville and Bossier since discovering
the play in 2007. During the 2010 second quarter, Chesapeake’s average daily net production of 560 mmcfe in the
Haynesville increased approximately 30% over the 2010 first quarter and approximately 315% over the 2009 second quarter.
The company’s average daily net production rate in the Haynesville in July 2010 was approximately 615 mmcfe. The
company is currently drilling with 35 operated rigs in the Haynesville and anticipates operating an average of approximately
36 rigs in 2010 to drill approximately 175 net wells. The company anticipates having the vast majority of its Haynesville
Shale leasehold held by production (HBP) by year-end 2011 and as such will have greater drilling flexibility in the years
ahead.
Three notable recent wells completed by Chesapeake in the Haynesville are as follows:
The Sloan
H-1 in DeSoto Parish, LA achieved a peak 24-hour rate of 22.2 mmcf per day;
The Brasch Family H-1 in DeSoto Parish,
LA achieved a peak 24-hour rate of 22.0 mmcf per day; and
The Wren H-1 in DeSoto Parish, LA achieved a peak 24-hour
rate of 21.6 mmcf per day. More.........
Goodrich Petroleum - GDP - Haynesville Shale - Shelby Trough - The Company has drilled
and logged its SW Henderson 1H (100% WI) well in Angelina County, Texas, with an estimated 215 feet of Haynesville Shale and
200 feet of Bossier Shale prospective in the well. The Company is currently drilling the lateral and is anticipating completing
the well in early September.
The Company has also drilled and logged its R Dean 1H (80% WI) well in Shelby County, Texas,
with an estimated 126 feet of Haynesville Shale and 188 feet of Bossier Shale prospective. The Company has reached total depth
on the lateral in the Haynesville Shale and is currently moving the rig to drill its R Dean 2H (80% WI), which it anticipates
will be its initial Bossier Shale completion.
Greenwood Waskom/Metcalf
Fields, Caddo Parish, Louisiana. The Company, as operator, has also successfully drilled and completed the Wayne
Bryan 3H-1 (78% WI), its second Haynesville Shale well in the Greenwood Waskom/Metcalf Field area, with an initial production
rate of 17,000 Mcfe per day on a 22/64 inch choke with 7,500 psi. The Company is currently completing its Wayne Bryan 4H-1
(74% WI), with results expected in the second quarter. Goodrich
is also very active in the Cotton Valley Shale. More.........
PetroHawk Energy - HK - Haynesville Shale - Petrohawk drilled 28 operated wells in the Haynesville Shale during the quarter,
the most the Company has drilled in a single quarter since the onset of Haynesville Shale development. All wells completed
during the quarter are being produced under reservoir optimization practices, which not only involve restricting production,
but also include optimizing completion techniques that have been continually improved over the past two years. Fourteen were
produced on a 14/64" choke with an average IP of 7.7 Mmcfe/d with 8,650 psi flowing casing pressure (FCP), four were
produced on a 16/64" choke with an average IP of 10.8 Mmcfe/d with 8,475 psi FCP, and two wells were produced on a 18/64"
choke with an average IP of 15.8 Mmcfe/d with 8,005 psi FCP.
In the Haynesville Shale, Petrohawk is focused on meeting
its leasehold requirements to hold acreage, gathering data toward optimizing future drilling, completion and production practices,
and comparing geologic data with well performance. As previously announced, Petrohawk reduced its Haynesville Shale rig count
during the quarter and is currently operating 14 rigs. All rigs running are now AC electric powered, and nearly 90% of wells
drilled during the quarter were drilled using closed loop systems - both factors the Company believes will aid in future efficiencies
and have a positive impact on the environment. During the second quarter, Petrohawk drilled its fastest well to-date, at 23
days spud to TD (30 days spud to spud). Average spud to spud time was 52 days, impacted by 43% of second quarter wells drilled
in deeper or more geologically complex areas of the play and at an average measured depth of approximately 16,900 feet. Wells
completed during the quarter utilized various completion formulas, including differing proppant types and volumes as well
as varying perforation and cluster spacing.
All existing wells with less than ~2,000 psi FCP have been restricted as
well by utilizing more restrictive chokes ranging from an 8/64" to 14/64". The Company believes this practice may
improve the EUR of the well and defer the need for field-wide compression.
Devon Energy DVN - Devon completed three Haynesville Shale wells within Shelby
and Nacogdoches counties in the first quarter. Initial 24-hour production rates for the three horizontal wells averaged six
million cubic feet of gas equivalent. Devon has a 100 percent working interest in the wells. 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.........
Exxon Mobil XOM - In the Haynesville shale gas play, we recently
commenced production from the first well on acreage held by ExxonMobil prior to the XTO merger and a second well is near completion.
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Forest Oil Company - FST - East Texas, North Louisiana - Haynesville / Bossier Shale - Forest drilled and completed five wells in the second quarter of 2010, not including previously announced wells.
The first three wells had an average initial 24-hour unrestricted production rate of 18 MMcfe/d. In order to optimize recovery
from Haynesville / Bossier Shale wells, Forest is testing a restricted flow rate production program. Under this program, initial
production rates from the last two wells were curtailed at 13 - 14 MMcfe/d. Initial results have indicated that cumulative
production from the restricted rate wells are forecasted to exceed the cumulative production from comparable unrestricted
wells at a period of approximately 90 days.
For the six months ended June 30, 2010, Forest added 25,200 gross acres (16,700
net) in the core area of Haynesville / Bossier Shale, which includes Red River and Sabine Parishes, Louisiana and Shelby County,
Texas, resulting in a total of approximately 40,200 gross acres (27,900 net) in this portion of the play. In addition, Forest
holds approximately 62,700 gross acres (44,400 net) prospective for the Haynesville / Bossier Shale primarily in Harrison,
Panola, and Rusk Counties, Texas. The Company intends to run three rigs in the play for the remainder of 2010.
Forest Oil is also active in the Cotton Valley Formation. More.........
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Exco Resources - XCO - The Haynesville shale gas play is one of the most active natural gas
plays in the United States. Our current Haynesville shale activity is located in DeSoto and Caddo Parishes in Louisiana and
in Harrison, Panola, Shelby, San Augustine and Nacogdoches Counties in Texas. Our joint venture with BG Group holds interests
in approximately 160,000 net acres (80,000 net to EXCO) in the Haynesville shale. Approximately half of our core area acreage
is held by our existing Haynesville, Cotton Valley, Hosston and Travis Peak production. In the first half of 2010, we added
approximately 26,000 net acres to our Haynesville position, including approximately 23,800 net acres in the Shelby Trough
in East Texas. The Shelby Trough is a second major focus area for us outside of our core DeSoto Parish position.
Our program
in the Haynesville shale play has transitioned from an appraisal and testing program in late 2008 and early 2009 to a full
scale horizontal development drilling program. In early 2009, we ran three operated horizontal drilling rigs in the play,
and we exited 2009 with twelve operated horizontal drilling rigs. We are currently running 18 operated horizontal drilling
rigs in the play and expect to exit 2010 with 22 operated horizontal drilling rigs. We plan to drill approximately 140 operated
horizontal wells in 2010. Since late 2008, we have spud over 100 operated horizontal wells and produced over 100 Bcf of gross
natural gas to sales. Our average IP rate for the DeSoto area is approximately 23 Mmcf per day. Our gross operated daily gas
production rate currently exceeds 500 Mmcf per day. - XCO is active in the Cotton Valley Field. More.........
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Cabot Oil & Gas - The Company recently finished its second operated Haynesville Shale well that
was completed with a 16-stage frac, on a 4,925' lateral. The well produced at a max rate of 20.5 Mmcf per day and at a restricted
24-hour rate of 15.5 Mmcf per day. In addition to this well, the Company has three completions occurring in the area at this
time, with six additional Haynesville/Bossier wells drilling or waiting on completion. "Information from Cabot's wells
and numerous industry wells around County Line indicates the Haynesville shale is a prolific productive zone in this area,"
said Dinges. "With this latest result and expectations for the new completions, Cabot's Haynesville production has the
potential to increase significantly during the second half of the year. Adding to this potential is our first Bossier test
which, based on recent prolific nearby industry wells, creates more excitement."
Cotton Valley Formation - Additionally in Texas, the Company completed its third horizontal Cotton Valley Taylor Sand well with the best result to date. This well flowed
at an initial production rate of 11.1 Mmcf per day with pressure at 2,425 psi. "The estimated recovery of our recent
wells in this area ranges between six to seven Bcfe," commented Dinges.
Berry Petroleum - BRY - We plan to run one rig during 2009 and will drill approximately five vertical wells in the Oakes field during
the year and plan to begin drilling horizontal wells in the Haynesville Shale Darco field in the third quarter of 2009.
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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.........
2010 Update: In the Haynesville shale, which we will now be reporting as a separate key resource play, we continued work on our land
retention strategy, drilling a total of 41 net wells in the first half of this year. 2010 second quarter Haynesville production
was just below 270 MMcfe/d, net to EnCana. Putting us on track to meet our year end average production guidance of 325 MMcfe/d
and exiting the year at greater than 500 MMcfe/d.
In addition to our land retention strategy, we now have one gas factory
pilot plant in the DeSoto Parish of Louisiana, that was the eight wells drilled from a single pad. With careful and continual
optimization, we believe that when we are operating at full-gas factory mode, we can achieve substantial reduction in our
drilling completion tie-in and operating costs.
During the second quarter, we drilled a promising well in the new Brent
Miller field, a sizable Texas extension in Sabine County. This well extended the Haynesville and Mid-Bossier potential into
an area where EnCana holds 45,000 net acres. Our well initially flowed at 25 MMcfe/d but when a second wing valve was added,
production from the 14,500-foot depth well increased to 32 MMcfe/d. We have a second well drilled and waiting completion in
late July.
EOG Resources - EOG - In the Haynesville, EOG drilled two wells that may be among the industry's most prolific to date in the
entire play. Due to pipeline constraints, the 30-day average restricted flow rates from the Crane #26-1H and Murray #1H were
27 and 25 MMcfd of natural gas at 7,800 and 8,100 psi flowing pressure, respectively. The wells had initial production rates
of 32 and 30 MMcfd at 9,700 and 9,200 psi flowing pressure, respectively. EOG has 96 percent working interest in these Texas
core area wells. Extending the boundary of the sweet spot further east into San Augustine County, Texas, the Walters #1H was
completed with a restricted initial production rate of 21 MMcfd of natural gas. EOG has 49 percent working interest in this
well. EOG confirmed success from the Bossier Formation in DeSoto Parish, Louisiana with the Red River 5#3H. EOG has a 100
percent working interest in the well, which began production at over 15 MMcfd of natural gas.
Penn Virginia PVA - East Texas
– During the second quarter of 2010, we drilled two (1.8 net) Haynesville Shale wells, one (0.8 net) of which has been
completed, and we drilled two (1.9 net) Cotton Valley horizontal wells, both of which have been completed. During the
second quarter, we completed two (1.8 net) Haynesville Shale wells. To date in the third quarter, three (2.8 net) Haynesville
Shale wells have been completed and a single (1.0 net) Haynesville Shale well is waiting on completion. As discussed
above, since we resumed drilling late last year and prior to putting our fracturing services agreement in place, we faced
delays in completions that resulted in less than anticipated production from East Texas in the first half of 2010.
The
last five Haynesville Shale wells completed included the Brown #6-H (100 percent working interest or WI), the Fults #2-H (79
percent WI), the Hendry #1-H (77 percent WI), the Timmons #3-H (100 percent WI) and the J&R Tiller #1-H (100 percent WI),
which had IP rates of 10.4, 15.3, 2.4, 8.9 and 10.0 MMcf per day, respectively. The Hendry #1-H experienced a casing problem
that prevented completion of the full lateral length, with production only from five intervals that were completed before
the mechanical problem developed. In addition, we completed two (1.9 net) Cotton Valley horizontal wells, with the Gibson
#3-H (100 percent WI) and the McClendon #6-H (90 percent WI) having IP rates of 4.9 and 3.0 MMcfe per day, respectively.
The
Brown #6-H and Fults #2-H were the first two Haynesville Shale wells completed in 2010. The 30-day rates for these wells averaged
7.4 and 11.2 MMcf per day and the number of frac stages were 15 and 24, respectively. Up until the completion of these two
wells, the maximum number of frac stages had been 10 for the two best wells we had previously drilled. The Brown and Fults
wells, now with almost 60 days of production, have current daily production rates exceeding the performance of these previous
best wells at the same production date by approximately 75 percent. We believe this improvement is attributable to the increased
number of frac stages, as well as higher back-pressures being held on the newer wells. Despite these promising results thus
far, we have decided to defer drilling in the Haynesville Shale for the remainder of the year to evaluate the longer-term
production results and economics of these recent wells.
PVA is also active in the Cotton Valley field.
GMX Resources - GMXR - As previously announced, the Company completed two Haynesville/Bossier
horizontal wells ("H/B Hz") in the first quarter. The Company successfully completed the Mia Austin #1H H/B Hz with
a 14.1 million cubic feet of gas per day ("MMCF/D") initial production ("IP") rate. The well has a 4,600
foot lateral, with 12 frac stages and was flowing on a 20/64 choke with 5,492 pounds of Flowing Casing Pressure ("FCP")
into a sales line with 850 pounds of Line Pressure ("LP"). Additionally, the Company successfully completed the
Verhalen E #1H with an 8.3 MMCF/D IP rate. This well has a 4,300 foot lateral, with 12 frac stages and was flowing on an 18/64
choke with 3,870 pounds FCP into a sales line with 640 pounds of LP. These wells were the last two using 4 1/2" casing.
All future H/B Hz wells will use 5 1/2" casing.
Two additional wells were rescheduled from Q1 to early Q2 and have
been successfully completed. The Bosh #19H H/B Hz was tested with a 10.1 MMCF/D IP rate. The well was drilled with a 4,153
foot lateral, and stimulated with 12 frac stages, however during the process of drilling out the plugs an obstruction prevented
the last 6 of 12 frac stages from being accessed. After several attempts the Company made a decision to cease current efforts
to drill out the remaining plugs and produce the well from approximately 6 of the 12 frac stages across 2,174 feet of the
open lateral. The well test was over 24 hours on a 14/64 choke with 4,526 pounds of FCP into a sales line with 590 pounds
of LP. Also originally scheduled for Q1 and rescheduled to Q2 was the Verhalen D #3H H/B Hz which tested with an 11.1 MMCF/D
IP rate. The well was drilled with a 4,900 foot lateral and stimulated with 11 frac stages. The well test was over 24 hours
on a 22/64 choke with 5,200 pounds of FCP into a sales line with 627 pounds of LP.
Scheduled for completion in Q2 and
previously announced was the Blocker Heirs #20H H/B Hz with a 14.4 MMCF/D IP rate. The well was drilled with a 4,450 foot
lateral and stimulated with 11 frac stages. The well test was over 24 hours on a 20/64 choke with 5,890 pounds of FCP into
a sales line with 975 pounds of LP. The Verhalen E #6H H/B Hz has also been completed in Q2 and had an IP rate of 11.1 MMCF/D.
This well was drilled with a 4,500 foot lateral and stimulated with 10 frac stages. The well test was over 24 hours on a 20/64
choke with 5,283 pounds of FCP into a sales line with 635 pounds of LP. .
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 operated one rig
in the haynesville shale and spud its 2nd horizontal well during the quarter.
Anadarko Petroleum ( APC ) 2010 Update - Haynesville Shale: Drilling
activity declined during the quarter as the company shifted its focus away to more liquids-rich areas. Anadarko ended the
quarter with one non-operated rig.
Questar STR - Questar E&P has approximately 43,000 net acres of Haynesville Shale lease rights in northwest Louisiana. The
depth of the top of the Haynesville Shale ranges from approximately 10,500 feet to 12,500 feet across Questar E&P's leasehold
and is below the Hosston and Cotton Valley formations, a target of Questar E&P development drilling for over a decade.
Questar E&P intends to drill or participate in up to 35 horizontal Haynesville Shale wells in 2009. As of September 30,
2009, Questar E&P had six operated rigs drilling in the project area and operated or had working interests in 598 producing
wells in northwest Louisiana compared to 463 at September 30, 2008. 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 - HAYNESVILLE CARRY AND EARNING AGREEMENT - St. Mary has entered into a CEA with a third
party that relates only to the Haynesville and Bossier intervals located on roughly 32,000 net acres in East Texas. The agreement
allows the third party to earn 95% of St. Mary's interest in approximately 8,400 net acres in Shelby County, Texas (the "North
Block") and 5% of St. Mary's interest in approximately 23,400 net acres in Shelby and San Augustine Counties, Texas (the
"South Block"). In exchange the Company will be carried in roughly $87 million in drilling and completion costs
for horizontal wells planned for the South Block. St. Mary will be the operator of wells drilled on the South Block. Once
St. Mary has completed the expenditure of the carry amount, the two parties will share all costs on the affected lands in
accordance with their respective ownership interests. St. Mary's acreage position in the Haynesville shale, adjusted for the
CEA, is roughly 32,300 net acres.
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Noble Energy NBL- One final item of note onshore in the US concerns our Shelby County, Texas acreage, where we brought in a partner on our
Hainesville potential. Petrohawk has joined in
our approximately 15,000 acre position and will operate the first four wells before we resume operatorship. This joint venture,
with Noble retaining 60% working interest, represents an excellent opportunity to partner with one of the leading developers
of the Hainesville Shale, and we look forward
to working together to better understand this emerging resource. Our first well spud late May and we should have results in
the third quarter. We are also participating in a 25% Hainesville
well in the Caspiana Field in Louisiana with another operator.
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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 - On June 30, 2010,
Southwestern closed the previously announced sale of certain oil and gas leases, wells and gathering equipment held by the
company in East Texas. Total net proceeds from the sale were $355.8
million. The sale included only the producing rights to the Haynesville and Middle Bossier Shale intervals in approximately
20,063 net acres. The company has retained the drilling and producing rights covering all other depths in the acreage, including
the company's current James Lime and Pettet drilling programs.
Southwestern still has approximately
10,500 net acres with Haynesville and Middle Bossier Shale potential. The company drilled two wells on this acreage (Hawthorne
prospect) in the second quarter, the Timberstar Blackstone A-1H well targeting the Haynesville Shale formation and the Harris
B-1H well targeting the Middle Bossier Shale formation. The Blackstone well is currently being completed and the Harris well
will be completed in the fourth quarter. A third well, the Crest C-1H, is currently drilling and will be completed in the
fourth quarter.
Production from the company's East Texas properties was 19.2 Bcfe during
the first six months of 2010, compared to 15.6 Bcfe during the same period last year. Approximately 2.1 Bcfe of company's
2010 production was related to its Haynesville and Middle Bossier properties which were sold in June. Southwestern participated
in drilling 26 wells in East Texas during the first six months of 2010, 9 of which were James Lime horizontal wells, 13 of which were Haynesville horizontal wells and 4 of which were Pettet
horizontal oil wells. Initial production rates from James Lime wells that were placed on production
during the second quarter averaged 7.2 MMcfe per day and initial production rates from Pettet oil wells that were placed on
production during the quarter averaged 505 barrels of oil per day, with 0.7 MMcf per day of associated gas.
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Comstock Resources CRK - In the East Texas/North Louisiana region, Comstock drilled 13 wells (9.4 net) in the first quarter. Twelve of the
wells are Haynesville shale wells. Six of the operated Haynesville shale wells drilled in 2010 have been completed and had
an average initial production rate of 14.0 MMcfe per day. In the South Toledo Bend field in Sabine Parish, Louisiana, Comstock
drilled the Sustainable Forest 3#1H well to the upper section of the Haynesville shale or Bossier shale and completed the
well with 16 frac stages. The well's initial production rate was 20 MMcfe per day. Comstock has a 67% working interest in
this well. In the Logansport field in DeSoto Parish, Louisiana, Comstock completed two successful operated Haynesville shale
wells. The Horn 5 #1H well was drilled to a vertical depth of 11,275 feet with a 4,669 foot lateral. The well was completed
with 18 frac stages and was tested at an initial production rate of 20 MMcfe per day. Comstock has a 100% working interest
in this well. The Ramsey 4 #1H well was drilled to a vertical depth of 11,426 feet with a 4,616 foot horizontal lateral. The
well was completed with 18 frac stages and was tested at an initial production rate of 15 MMcfe per day. Comstock has a 100%
working interest in this well. In the North Toledo Bend field in DeSoto Parish, Louisiana, Comstock completed two successful
wells. The BSMC 1 #1H was drilled to a vertical depth of 11,416 feet with a 4,471 foot horizontal lateral. The well was completed
with 12 frac stages and was tested at an initial production rate of 9 MMcfe per day. Comstock has a 63% working interest in
this well. The BSMC 12 #2H was drilled to a vertical depth of 11,017 feet with a 4,431 foot horizontal lateral. The well was
completed with 12 frac stages and was tested with an initial production rate of 9 MMcfe per day. Comstock has a 66% working
interest in this well. In the Waskom field in Harrison County, Texas Comstock drilled the Clark H #1H well to a vertical depth
of 10,908 feet with a 4,261 foot horizontal lateral. The well was completed with 18 frac stages and was tested at an initial
production rate of 12 MMcfe per day. Comstock has a 100% working interest in this well.
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 Shale play in Shelby County, TX, Unit owns a 55% working interest in the Smith #1H which was recently
completed flowing at rates of 3.5 MMcf per day with 5,800 pounds of flowing tubing pressure. The well is being curtailed due
to current pipeline constraints which are expected to be resolved in September. The well was drilled with a lateral of 3,300’
and fracture stimulated with eight stages. Unit owns approximately 16,000 gross (11,000 net) acres in the prospect area and
anticipates drilling two additional wells in 2010..
Denbury Resources DNR - Denbury's Haynesville Shale assets are up for sale - Within the Haynesville, we drilled two operated wells, the [Renfro] 5-1H and the [Korbies] 20-2H in 2010. We completed
the [Dun] 2-1, which was actually drilled in 2009 in the Renfro, and we are currently drilling a third well, the [Purvis]
20-3H. We have also participated in 10 non-operating wells during the first quarter of 2010.
The two Purvis wells
are on the same path and thus the completion of those wells will follow the finalized drilling of the 20-3H probably in early
June. First quarter production averaged approximately about 3,200 BOEs per day within the Haynesville, and our preliminary estimated April production averaged over 4,500 BOEs
per day.
