Tuesday, December 30, 2008

Marcellus Shale: Trans Energy TENG Competes Third Well

Trans Energy ( TENG ) came out yesterday, 12/29/08, and announced it has completed its third Marcellus Shale well.

Trans Energy, Inc. (OTC Bulletin Board: TENG) announced today that its Dewhurst #73 well in Wetzel County, West Virginia was successfully completed on December 16th and connected to a gas sales line on December 20th. The Dewhurst #73 is completed in the Marcellus shale, a prolific new "resource play" in Appalachia, similar to the Barnett, Fayetteville and Haynesville shales which have grown to become a significant base of hydrocarbon reserves in the United States.
The well is continuing to purge water used in the frac process, and is producing gas at a volume and working pressure that indicates this development area may be among the most attractive parts of this new and substantial shale play.
James K. Abcouwer, President and CEO of Trans Energy, said, "This third Marcellus well indicates that the positive results from our first two vertical wells, the Hart #20 and Dewhurst #50, can be replicated throughout our acreage position in northern West Virginia. We're now beginning a horizontal well program in yet another significant step forward for Trans Energy to properly develop its acreage position. We're pleased to have achieved this sizeable acreage position centered on the Wetzel-Marion-Marshall-Doddridge Counties area, which looks to be one of the most -- if not the most -- prolific part of the Marcellus resource in Appalachia."


Monday, December 29, 2008

Oil, Natural Gas Prices 12/29/08 - December 29th

Oil and Natural Gas are both rising this morning due to violence in the Gaza Strip over the weekend.

Oil is above $40 in pre market trading and Natural Gas prices have rebounded lately at $5.96 in pre market.

As far as drilling for shale goes, if Natural Gas rises back above $7 I think you will see increased activity in the various shale plays which have been silent as of late.


Saturday, December 20, 2008

Fayetteville Shale: Southwestern Energy SWN 2009

Southwestern Energy ( SWN ) has come out and given their drilling and budget update for the Fayetteville Shale in 2009.

“2008 has been an incredible year for Southwestern Energy. We have seen significant
improvements in our well performance in the Fayetteville Shale over the past several
quarters, resulting in remarkable growth in our production levels and, correspondingly, our earnings and cash flow. Meanwhile, the turbulent times in the financial and commodity markets are having a considerable impact on both the national economy and our industry.

As a result, we will enter 2009 with both caution and optimism. We believe the future for Southwestern is very bright and that 2009 will be another record year for our company. The company is well positioned with an extremely strong balance sheet and financial position and an opportunity set that rivals any in our industry with our Fayetteville Shale play,” stated Harold M. Korell, Chairman and Chief Executive Officer of Southwestern Energy.

“In 2009, we will continue to operate 20-21 rigs in the Fayetteville Shale play and, with the improvements in our drilling times, we currently expect to participate in approximately 620 horizontal wells (470 operated), compared to an estimated 520 wells in 2008, as we continue to develop our significant acreage position. As a result of our planned investments, we expect our 2009 production to be in a range of 280 to 284 Bcfe, which is an increase of approximately 48% compared to our expected 2008 levels,” stated Korell.

For More Updates on the Fayetteville Shale...Click Here

Marcellus Shale: ATN Atlas Energy Washington PA

Atlas Energy ( ATN ) has come out and given shareholders a drilling update on the Marcellus Shale. Atlas Energy is currently active in the following Pa counties: Washington, Greene, Fayette.

Atlas Energy ATN announces today that it has completed a vertical well in the Marcellus Shale that produced a record 5 million cubic feet of natural gas into a pipeline over a 24-hour period and, after 25 days of production, has produced approximately 81 million cubic feet. Atlas completed this well using a two-stage frac design that it pioneered earlier this year, which was drilled on the Company's own account. The Company has now successfully completed seven two-stage vertical fracs in the Marcellus Shale and has averaged initial rates of production for 24 hours of 2.5 million cubic feet per day. The Company intends to complete all future vertical Marcellus wells with similar multi-stage fracs. Atlas has performed over 100 vertical Marcellus completions.
"These results reflect not only the effectiveness of our completion designs, but also the quality of our acreage," stated Richard D. Weber, President and Chief Operating Officer. "The potential of horizontal wells having frac designs with up to eight stages is very exciting given the exceptional results from our two stage verticals."
Atlas is also currently operating an extensive horizontal Marcellus program and expects to complete 12 wells by early in the second quarter of 2009. Ten of these wells will be drilled in a 50/50 joint venture with an industry partner in Washington County, Pennsylvania. The remaining two wells will be drilled in eastern Greene and western Fayette counties of Pennsylvania in an industry consortium where Atlas will have a 25% working interest. In each case, Atlas will be the operator. The Company is currently running two horizontal rigs. The first two wells have been drilled and cased to 2,400 feet and 3,800 feet, respectively, and will be completed and turned into line in January.
In addition, Atlas continues to hedge the price it receives for its natural gas production, with hedges in place through 2013 at prices ranging from approximately $8.00 to $9.00 per mcf. The Company's hedge positions for 2009 and 2010 account for approximately 79% and 63%, respectively, of its recently disclosed production volume for the third quarter of 2008.


Click Here for the latest Marcellus Shale Updates.

Wednesday, December 17, 2008

Eagleford Shale: Rosetta Resources ROSE Update

Rosetta Resources ( ROSE ) a small natural gas company has come out and given their update on the Eagleford Shale.

In South Texas, the Company acquired a 70 percent working interest in certain properties in the Catarina field, and a 35 percent interest in a significant acreage position in the area that is prospective for the Eagle Ford shale. The Rocky Mountain transaction closed on December 11, 2008 and the South Texas transaction is expected to close before year-end.

Rosetta also recently added acreage to its growing position in the Eagle Ford shale. Including the acreage from the Constellation properties and newly acquired leasehold, the Company now holds over 25,000 net acres in this play.


For More Shale Updates, Visit http://blackberrystocks.blogspot.com/ and for all your Shale research, visit http://oilshalegas.com

Tuesday, December 16, 2008

Marcellus Shale: CNX Gas Record Well Results

CNX Gas has come out and reported their drilling update on the Marcellus Shale.

CNX Gas Corporation ( CXG), the leading E&P company in the Appalachian Basin, reported that its first horizontal Marcellus Shale well is now producing at a rate of 6.5 million cubic feet (MMcf) per day. This is a record daily production rate for any well in the company’s history and is believed to be among the highest reported by any Marcellus Shale producer. The well, located in Greene County, Pa., began flowing into the sales meter on October 2, with an initial production rate of 1.2 MMcf per day and 4,000 pounds of backpressure, as previously reported. The backpressure on the well had been gradually reduced since then, allowing daily production to increase to about 4 MMcf per day until Friday, when the installation of new surface equipment enabled the well to flow at the 6.5 MMcf per day rate, with pressure still being held at 2,640 pounds. Cumulative production from the well prior to last Friday was 106 MMcf.

Nicholas J. DeIuliis, president and chief executive officer, said, “This was a team effort from our engineers, operators, and support personnel, including the directional drillers from Scientific Drilling and the hydraulic fracturing team from BJ Services. I can’t speak highly enough of our Marcellus Shale team.

“To achieve this kind of success with our first horizontal Marcellus Shale well,” Mr. DeIuliis continued, “speaks volumes about the breadth of our horizontal drilling expertise. Many investors may not be aware, but CNX Gas had drilled 160 horizontal coalbed methane wells before drilling its first horizontal Marcellus Shale well.”

The well was drilled to a vertical depth of 8,140 feet in the Huntersville Chert, penetrating 83 vertical feet of Marcellus Shale. The well was logged then plugged back and a horizontal section of 3,395 feet was cut for a total measured depth of 10,738 feet. The well was completed with a five-stage slickwater fracture treatment using 3 million pounds of proppant.

Full Article

Thursday, December 11, 2008

Bakken Shale: Three Forks - Sanish should be tested

Senator Byron Dorgan wants the Sanish/Three Forks Oil region to be tested to find out how much Oil is really there. The Three Forks rests below the Bakken Shale.

Government scientists should try to find out how much crude can be recovered from a promising reservoir beneath North Dakota’s already prolific oil patch, Sen. Byron Dorgan says. The U.S. Geological Survey says a study now would be premature.
The Three Forks-Sanish formation is made up of sand and porous rock directly below the rich Bakken shale in western North Dakota.
“The question is: What’s there and what’s recoverable using today’s technology?” said Dorgan, D-N.D., who said he will make a formal study request to the USGS next week.

Full Article - http://www.jamestownsun.com/articles/index.cfm?id=76697&section=News

Monday, December 8, 2008

Chesapeake Energy ( CHK ) 12/8/08 - Looking to Sell More Assets

Chesapeake Energy ( CHK ) shares have been hit hard over the past several weeks due to deteriorating confidence in once highly respected management. Insider Stocks Sales, Dilution has really hit CHK stock hard. Today, 12/8/08, Chesapeake Energy seems to realize they have burned shareholders and are taking a few steps in the right direction to gain back shareholder confidence.

Chesapeake Energy is looking into selling some Fayetteville Shale Assets and will decrease the shelf offering to 25 million shares.



Sunday, December 7, 2008

Hiram Brook Formation: New Oil Discovery - New Brunswick

There was a new oil discovery in Canada announced this past week located in southern New Brunswick. Which oil prices falling 5% per day, the buzz isn't as great as it once was. Back in July, if positive reports would have come out on the Bakken Shale located in Canada, North Dakota, and Montana, it would have been all over the news.

Corridor Resources Inc. (CDH – TSX) reported December 3rd that it made a potentially significant oil discovery at its South Branch G-36 well situated 3 kilometers southeast of the McCully natural gas field in southern New Brunswick. The G-36 well penetrated a thick sequence of Hiram Brook sands containing indeterminate fluid content based on well logs prior to being drilled to a total depth of 2642 meters, nearly 500 meters into the underlying Frederick Brook shale. The well has been cased and two frac stimulation treatments have been carried out over two intervals within the Hiram Brook formation. The first frac, conducted over 10 meters of potentially gas bearing sands within the depth interval 1757 - 1840.5 meters in the lower Hiram Brook formation, yielded a show of oil and no measurable amounts of gas and is considered to be tight. The second frac was conducted in a 38 meter thick sand within the depth interval 1574 – 1612 meters in the upper Hiram Brook formation. The frac placed 30 tonnes of proppant prior to being prematurely concluded due to a frozen water line which may have reduced the effectiveness of the frac. Following 10 days of flow-back and clean-up of frac fluids, the well was flowing clean, 45° API oil and no water at a measured rate of 59 barrels of oil per day through production tubing. The well is currently shut in awaiting installation of a pump to reduce down-hole pressure and increase the rate of production prior to undertaking long-term testing later in December to evaluate the economic potential of the well. An additional 31 meters of potential oil pay (previously reported as potential gas pay) in the upper Hiram Brook formation have not as yet been completed in this well.

Full Article


Thursday, December 4, 2008

Marcellus Shale: Rex Energy Provides Update

Rex Energy Corporation (REXX) provided an operational update today on its Marcellus Shale activities and 2009 capital budget.

The company is pleased to announce initial flow rates for its first two vertical test Marcellus Shale wells completed in Westmoreland County, Pennsylvania. These wells, drilled in the deeper portion of the Marcellus play, had peak flow rates of 400 and 1,200 Mcf per day respectively before being turned into sales. Each well continues to stabilize at daily production rates of 300 - 500 Mcf per day, and the high operating pressures suggest increased production is likely with further production facility optimization. The company's third vertical test well in Westmoreland County has been drilled and will be completed by mid-December.

In Clearfield County, Pennsylvania the company has recently completed drilling its first vertical test well encountering approximately 150 feet of Marcellus Shale formation. The company expects to complete the well in late December. Additionally, in Butler County, Pennsylvania area, the company participated in the drilling of two additional vertical wells with its partner. Both wells are expected to be completed during the first quarter of 2009 following installation of the company's gas processing facility.


Tuesday, November 25, 2008

Haynesville Shale: Questar STR New Well Results

Questar ( STR ) has come out and issued results on their new Haynesville Shale well.

Questar Corporation (STR) subsidiary Questar Exploration and
Production Company (Questar E&P) today announced completion of the company’s first
operated Haynesville Shale horizontal wells in Northwest Louisiana.

The Waerstad #3, located in Red River Parish, LA (Sec 1, T14N, R12W) was placed on
production on November 13, 2008 at an initial rate of 16 million cubic feet of natural gas per day
(MMcfd) on a 23/64 inch choke with 6,400 pounds per square inch flowing casing pressure.
Eight fracture stimulation stages were pumped in the 3,234 foot horizontal lateral. Questar E&P
has a 100% working interest in the Waerstad #3 well.

The Wiggins 36 H - #1, located in Bienville Parish, LA (Sec 36, T15N, R10W) was
placed on production on November 16, 2008, at an initial rate of 7.4 MMcfd on a 22/64 inch
choke with 5,450 pounds per square inch flowing casing pressure. Nine fracture stimulation
stages were pumped in the 3,455 foot horizontal lateral. Questar E&P has a 62% working interest in the Wiggins 36H- #1 well.

Questar E&P is currently drilling two additional company-operated Haynesville
horizontal wells and is participating in four outside-operated Haynesville horizontal wells that are in various stages of progress. Questar E&P has approximately 31,000 net acres of
Haynesville Shale leasehold in the Elm Grove, Woodardville and Thorn Lake areas of Northwest



Monday, November 24, 2008

Haynesville Shale: GMXR First well Completed

GMX Resources ( GMXR ) announced last week that they have completed their first Haynesville Shale well.

GMX Resources Inc., (Nasdaq:GMXR) ("GMXR") (visit www.gmxresources.com to view the most recent Company presentation and for more information on the Company) today announced completion and initial production results for the Callison 9H, the Company's first Haynesville/Bossier Shale (H/B) horizontal well.

The Callison 9H (100% WI) located in the William Smith a21, Harrison County, Texas has the Company's shortest planned lateral of 2,200 feet. The well was placed on production November 20th and is currently producing at a stabilized rate of 7.7 mmcf/d, on a 22/64" choke with 5,200 pounds flowing casing pressure. The completion consisted of an eight stage fracture treatment. "We have budgeted 2009 based on a beginning production rate of 3.4 mmcf/d," stated Ken Kenworthy, CEO of the Company.

The Company is currently drilling two H/B horizontal wells. Completion of the Bosh 11H and the Baldwin 17H will take place 1Q09. A fourth H/B horizontal well is expected to spud within two weeks. Forty-five H/B horizontal wells are currently planned for 2009. The next 16 H/B horizontals are expected to average a 3,800 foot lateral and 11-12 stages of fracture treatments. The Company has previously forecasted 2009 production to be 30 Bcfe which is greater than 100% growth over 2008. The Company has 480 H/B horizontals to drill on 80 acre density, which includes the recently completed Callison 9H.

GMXR is a 'Pure Play', E & P Company and one of the most concentrated Haynesville / Bossier Shale Operator in East Texas. The Company has 435 BCFE in proved reserves (YE2007) and 3.2 TCFE in total 3P reserves that are 94% natural gas and consist of 480 net Haynesville /Bossier 80 acre horizontal locations and 318 gross / 180.9 net Cotton Valley ("CV") producers; 2,652 gross / 1,971 net CV un-drilled locations with a 100% drilling success rate. Five operated drilling rigs are currently developing this contiguous, multi-layer gas resource play on the Sabine Uplift; Carthage, North Field, in Panola & Harrison County of East Texas, and Caddo Parish of North Louisiana. The Company has invested $100 million in infrastructure which has contributed to 'Best in Class' finding and development costs. There are also 46 gross / 38 net Travis Peak/Hosston Sands & Pettit producers on the property. These multiple resource layers provide high probability and repeatable, organic growth. The Company, headquartered in Oklahoma City, Oklahoma, has interests in 386 gross / 235 net producing wells and operates 81% of its reserves. The Company's strategy is to grow shareholder value through Haynesville/Bossier Shale horizontal well development as well as Cotton Valley Sand vertical wells, to continue acreage acquisitions, to focus on operational growth around its core area, and to convert its natural gas reserves to proved, while maintaining balanced prudent financial management.


Thursday, November 20, 2008

Marcellus Shale: Range Resources Drilling Update 11/20/08

Range Resources ( RRC ) is out with a drilling update, 11/20/08, on their Marcellus Shale natural gas acreage.

Last month Range and MarkWest Energy Partners, L.P. (NYSE:MWE) announced completion of the first phase of the Marcellus Shale infrastructure. The initial phase included gas gathering and compression as well as Pennsylvania's first large-scale gas processing facility. Since then Range has been completing production facilities and connecting previously drilled wells to the gas gathering system. Currently, seven wells are tied into the gas processing facility and net sales from these wells total 30 Mmcfe per day.

MarkWest is currently undertaking additional infrastructure development which will serve to expand the gathering system and add gas processing capacity. A cryogenic plant is expected to be online by the end of first quarter 2009, increasing gas processing capacity to 60 Mmcf per day. By year-end 2009 or early 2010, processing capacity is anticipated to be 180 Mmcf per day. As additional gas processing capacity is completed, Range will turn on additional wells. Range currently plans to enter 2009 with three horizontal rigs, increasing to six rigs by the end of 2009. By year-end 2009, Range anticipates that production will reach 80 to 100 Mmcfe per day, net to its interest.

John H. Pinkerton, Chairman and CEO of Range Resources, commented, "We continue to make exciting progress in the Marcellus Shale play as production rates are exceeding expectations. Our technical team is making excellent headway in reducing drilling costs which is very important as we ramp up our development activities. Having now transitioned from the testing phase to the development phase, the Marcellus Shale play should greatly enhance our future production, reserves and capital efficiency. Given its proximity to the northeastern gas markets, the Marcellus Shale play is ideally located to provide a new source of domestic, clean-burning natural gas for many years to come. Importantly, during this period of economic uncertainty, the Marcellus Shale play has the potential to add tens of thousands of new jobs and billions of dollars of economic benefit


Wednesday, November 19, 2008

Marcellus Shale: Rex Energy Drilling Update 11/19/08

Rex Energy ( REXX ) recently reported earnings and gave an operational update regarding the Marcellus Shale.

Rex Energy ( REXX ) has drilled three vertical test wells in Westmoreland County, Pennsylvania, two of which were fractured stimulated during October and are currently flowing back and undergoing initial testing. The third is expected to be fracture stimulated during November. The company anticipates drilling an additional two vertical test wells in Clearfield County, Pennsylvania during the fourth quarter of 2008, and participating for 50% with its partner in two vertical wells in Butler County, Pennsylvania.

Rex Energy has been active in acquiring mineral rights over the past year.


Bossier Shale: Gastar East Texas Drilling Results

Gastar Exploration is out today, 11/19/08, updating investors on drilling results from their deep sand Bossier Shale wells. The Bossier Shale sits below the Haynesville Shale FYI.

Gastar Exploration Ltd. (NYSE GST) today announced that it has successfully drilled the Belin #1 well, a deep Bossier test, to a total depth of 18,800 feet and has logged approximately 150 net feet of pay in the middle and lower Bossier formations.

The Belin #1 well contains three pay zones within the lower Bossier formation that, based on log analysis, have the highest measured porosity -- up to 25% -- of any wells drilled by Gastar in the deep Bossier play. The well also encountered two middle Bossier sands, including the Lanier Sand, in a downdip location in a new fault block with indicated pay based on log analysis.
The well is expected to be completed and producing within 30 days. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.

"The Belin #1 well has the potential to be Gastar's best well to date in terms of estimated recoverable reserves and potential flowrate in the Hilltop area," said J. Russell Porter, Gastar's President and CEO.

"We plan to complete the well in the two deepest zones first, and we expect that to be a high-rate completion. We are also very encouraged by the fact that the Lanier Sand was present and has been shown to be productive in a downthrown fault block from the Wildman Trust #3 well, where the Lanier Sand was recently recompleted at an initial rate of 21 MMcf per day."
In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth close to year end. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.


Monday, November 17, 2008

Barnett Shale: Devon Energy Awarded for Clean Water

Devon Energy ( DVN ) is some really good water treatment solutions and is finally being recognized for it, this time, in the Barnett Shale in Texas.

Devon Energy Corp. was recognized for its water treatment efforts in the Barnett Shale natural gas play by The Interstate Oil and Gas Compact Commission, a multi-state government agency based in Oklahoma that advocates incorporating environmental responsibility with energy production.

Full Article - http://www.fwbusinesspress.com/display.php?id=8912


Montney Shale: Progress and ProEx announce Business Combination

Progress ann ProEx, two companies that trade on the Toronto Stock Exchange, announce they will combine businesses to focus their assets, including the Montney Shale in British Columbia.

Key attributes of the merger for ProEx shareholders: - Consolidates working interests in the Foothills of northeast British Columbia with the majority of land controlled 100 percent; - Provides ProEx with exposure to a high quality asset with a large low risk exploration and development drilling inventory in the northwest Alberta Deep Basin; - Ensures that an expanded capital program can be funded internally; - Ensures continuity of senior management and technical personnel expertise; and, - Introduces another element of financial discipline through the payment of a quarterly dividend. Key attributes of the merger for Progress Trust security holders: - Establishes a clear go-forward strategy in response to the taxation of trusts in 2011; - Continues to pay cash back to security holders in the form of a tax-effective dividend; - Provides a strong low-risk growth profile through an expanded capital budget; and, - Provides expanded participation in emerging resource-play opportunities.

Progress will focus its capital investment and growth opportunities in four key plays: the Halfway tight gas formation in the Foothills; the multi-zone Gold Creek project area in the Deep Basin; Montney shale gas fairway through northwest Alberta and northeast British Columbia; and Progress' conventional, high impact opportunities across its land base.

For More Shale Updates, visit, http://blackberrystocks.blogspot.com/

Thursday, November 13, 2008

Haynesville Shale: Caddo Parish Residents Getting Nothing

More disturbing news out of the Haynesville Shale in Caddo Parish. Residents who signed mineral rights contracts aren't getting paid.

Thousands of Caddo Parish residents have cashed in on the Haynesville Shale. Greenwood property owners hoped to make big bucks off their mineral leases. But Monday, they found out they're not getting a dime.
People from Greenwood signed leases at $22,500 an acre. Monday, they learned Chesapeake Energy ( CHK ) is not funding their lease bonus drafts.

Full Article - http://arklatexhomepage.com/content/fulltext/?cid=47191

Tuesday, November 11, 2008

Marcellus Shale: Chesapeake CHK Sells to StatoilHydro

Chesapeake Energy Corporation ( CHK ) Announces Marcellus Shale Joint Venture and International Unconventional Natural Gas Exploration Alliance with StatoilHydro, Today, 11/11/08.

Chesapeake Energy Corporation (CHK) today announced the execution of an agreement for a joint venture with StatoilHydro (STO) whereby StatoilHydro will acquire a 32.5% interest in Chesapeake's Marcellus Shale assets in Appalachia for $3.375 billion, leaving Chesapeake with a 67.5% working interest. The assets include approximately 1.8 million net acres of leasehold, of which StatoilHydro will own approximately 0.6 million net acres and Chesapeake will own approximately 1.2 million net acres.

StatoilHydro will pay $1.25 billion in cash at closing and will pay a further $2.125 billion from 2009 to 2012 by funding 75% of Chesapeake's 67.5% share of drilling and completion expenditures until the $2.125 billion obligation has been funded. Chesapeake plans to continue acquiring leasehold in the Marcellus Shale play and StatoilHydro will have the right to a 32.5% participation in any such additional leasehold.

Additionally, Chesapeake and StatoilHydro have agreed to enter into an international strategic alliance to jointly explore unconventional natural gas opportunities worldwide. Closing of the transaction and strategic alliance is anticipated to occur by year-end 2008.

For more shale updates, visit, http://blackberrystocks.blogspot.com/

Monday, November 10, 2008

Haynesville Shale: Bossier City Resiedents Sue!

The Haynesville shale is getting interesting, Natural Gas Prices have plunged, and Developers are taking advantage of Residents.

Residents of the Bossier City neighborhood Southgate Estates are suing their developer, accusing the company of retaining their mineral rights and not including that information in the deeds.

In Louisiana, like other states, property rights and mineral rights can be purchased separately. Even after a home is sold, the seller can still retain that property's mineral rights.

Full Article - http://www.shreveporttimes.com/article/20081110/NEWS01/811100311/1060

Saturday, November 8, 2008

Gothic Shale: New Natural Gas Discovery - Bill Barrett Corp

Bill Barrett Corporation ( BBC ) announced this week a successful new shale discovery in Southestern Colorado in the Yellow Jacket Prosepect area. This shale formation is located near the Green River Formation

A significant shale gas discovery at the Yellow Jacket prospect in the Paradox Basin in southwest Colorado

Our Company is very excited about the initial results from the first two horizontal Gothic shale gas wells at the Yellow Jacket prospect in southwest Colorado. The Koskie well produced for 17 days, averaging 4.5 million cubic feet per day (MMcf/d) of natural gas over the final ten days and completed the testing period at a rate of 5.7 MMcf/d. The second horizontal well, the Neely well located 14 miles north of the Koskie discovery, is currently testing early in the flowback stage at 3.1 MMcf/d natural gas. Due to the encouraging results from the wells drilled to date, in 2009 we will operate a continuous program to evaluate the area and will begin construction of infrastructure. This is a widespread but shallow (5,500 to 6,500 feet) resource play where the Company has built a 397,000 gross acre position over the past four years.


For the latest Shale News, visit - http://blackberrystocks.blogspot.com/

Friday, November 7, 2008

Haynesville Shale: Devon Energy DVN Update

Devon Energy ( DVN ) recently released earnings and highlights from their 3rd quarter operations in the Haynesville Shale:

From Seeking Alpha:

Since we announced our second quarter results; we have acquired 50,000 net acres in Haynesville Shale at an average cost of 3500 per acre.

In total we will have built a position of almost 1.4 million net acres in four new unconditional gas plays. This includes 153,000 acres in the Horn River, 580,000 acres in Haynesville and 650,000 acres in two new Shale plays that we are not ready to identify or discus.

Moving east in the Haynesville Shale and east Texas and northwest Louisiana as Larry mentioned we added 50,000 net acres in the third quarter and expect to add an additional 50,000 net acres in the fourth quarter. This will bring our total Haynesville shale position to 580,000 net acres. During the third quarter, we initiated drilling on our first two horizontal wells in the Haynesville Shale. These 100% working interest hole 103-H located in Panola County, Texas has reached total vertical depth and is now drilling the lateral section. We plan to begin completion operations next week.

Our second Haynesville Shale horizontal well the 100% owned McSwain 7H located in Shelby County, Texas is also at drilling. We expect to have these results from both these wells in our year end call. Our focus in the Haynesville Shale throughout the reminder of 2008 and 2009 will be to better characterize our acreage through additional drilling, coring and testing in order to define the areas of the play, where we believe we can achieve consistent, repeatable results just as we did in the Barnett Shale.

We planned to drill two additional horizontal wells in the Haynesville Shale during the fourth quarter with two dedicated rigs running. One of the great things about our acreage position in east Texas and Western Louisiana is the stack pay zones. An example of this is that our Stockman Field in the Carthage area. Not only does this field have Haynesville Shale potential, but it also has deeper potential in the Haynesville line.


Thursday, November 6, 2008

Haynesville Shale: Petrohawk Spuds New Well

Petrohawk Energy ( HK ) is out with earnings this morning and an update on a new well they spudded in the past two weeks located in Bossier Parish in the Haynesville Shale Nautral Gas Field.

Since its operational update on October 21, 2008, Petrohawk has completed one additional well in Bossier Parish, Louisiana, targeting the Haynesville Shale. The EGP #64H (100% WI), located in Section 10, Township 16 North, Range 11 West, was placed on production at a rate of approximately 15.7 Mmcfe/d, on a 24/64" choke with 6,700 pounds flowing casing pressure. The well has a lateral length of approximately 4,100 feet and was completed using 12 stages of fracture stimulation.

The Company has completed a total of four wells in the Haynesville Shale, all with initial production rates over 15 Mmcfe/d. Petrohawk expects to average 14 operated rigs during 2009 in this area, targeting the Haynesville Shale, Bossier Shale and the Cotton Valley Lime formations. Twelve of these rigs will drill locations in Northwest Louisiana, and two will drill on acreage in East Texas.


Wednesday, November 5, 2008

Bakken Shale: XTO Energy Oil Three Forks 11/05/08

One of XTO's Bakken Shale wells of producing 1750 barrels of Oil per day in the Three Forks / Sanish area. This is an amazing discovery!

XTO Energy Inc. (NYSE: XTO) announced today production results from wells drilled in multiple regions on its newly acquired property base. In the Bakken Shale play of North Dakota, the Company has now completed 5 wells with average production rates of 673 barrels of oil equivalent per day, primarily producing from the Middle Bakken shale section. In addition, a Three Forks/Sanish discovery well, the DeAngelis 41x-21, has been completed at an initial production rate of 1,750 barrels of oil equivalent, at a flowing tubing pressure of 2,200 pounds.
XTO currently operates four drilling rigs in this prolific oil basin and owns a leasehold position with over 450,000 acres.

In the Fayetteville Shale, where XTO has expanded its leasehold to 380,000 acres, the Company has recently drilled and completed 5 wells, with 4,000 feet lateral sections, at an average daily rate of 2.5 MMcf. In the Woodford Shale region, on newly acquired acreage, the Churchill 1-26 well is completed and producing 4.3 MMcf per day.

In the Farrar/Bear Grass Field of the Freestone Trend, the Beddingfield 6H, a horizontal Cotton Valley lime well, was recently completed at 8 MMcf per day. This well offsets producing leases, totaling about 5,500 acres, acquired in the Hunt Petroleum transaction where drilling activity will commence in early 2009. Also, XTO has spudded its first two horizontal Haynesville Shale wells on acquired leasehold in its Eastern Region. Finally, in its offshore producing region of the Gulf Coast, XTO has completed and tested the Main Pass 125-2 well, one of several identified development prospects, at an initial daily rate of 17 MMcf and 500 barrels of oil.


Tuesday, November 4, 2008

Marcellus Shale: Biggest Natural Gas Field in the USA?

Move over Haynesville Shale, there is a news report out today quoting a Penn State Geoscientist saying that the Marcellus Shale could be 7 times larger then originally thought. This would leave the Marcellus Shale natural gas field holding over 350 trillion cubic feet of natural gas. This would be huge for Pennsylvania, New York, West Virginia, and Ohio.

Production on the Marcellus gas field, or "play," is considered to be in the early stages, but the sheer size of it is drawing heavy interest from the exploration industry.

Here is the full article - http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--shalegas-potentia1103nov03,0,6515825.story


Monday, November 3, 2008

Fayetteville Shale Conference UALR Arkansas 11/05/08

Want to learn more about the Fayetteville Shale? Do you live near Little Rock Arkansas?

The next University of Arkansas at Little Rock Economic Forecast Conference will be held Wednesday, Nov. 5 at the DoubleTree Hotel in Little Rock.

Following lunch, a panel discussion on the impact of the Fayetteville Shale development on communities will feature Conway County Judge Jimmy Hart; Brad Lacy, president and CEO of the Conway Development Corp.; and Jerry Cash, director of economic development for the city of Cleburne, Texas. He will discuss the impact that the Barnett Shale development had on Texas communities.


Saturday, November 1, 2008

Haynesville Shale vs Bossier Shale - Cabot ( COG )

Cabot Oil & Gas ( COG ) had some interesting comments about the Bossier Shale and the Haynesville Shale on their latest conference call 10/30/08. They are basically comparing the two formations which are on top of each other. Please note: the Cotton Valley formation is on top of that.
This is a lengthy read but well worth it! In short, they think the Bossier Shale is better then the haynesville shale despite the haynesville getting more press.

From Seeking Alpha

David Heikkinen - Asking the Questions on the Conference Call
Basically just thinking about the Bossier versus the Haynesville and trying to frame up depositional environment and consistency in the Bossier shale as you move into your acreage, I know there isn't the Haynesville and County Line, but just trying to understand consistency and kind of properties? And then next on the Lime, normally it's too tight, so is there a cutoff as far as what you're seeing with the horizontal Lime well that you drilled, just trying to understand that too?
Dan Dinges - President & CEO giving the Answers
David, we have drilled numerous deep data points that are giving us Bossier/Haynesville shale information. We are seeing the Haynesville shale, you will extend overall of Cabot acreage. It is not as thick as we would see over in Louisiana. But the properties, the gas content, so on are the same. More importantly from our perspective is that we are seeing what we're calling the middle and upper Bossier as very thick, very gas charged. We are producing a well right now from the upper Bossier shale at nearly 3 million a day.
We talked about it earlier at Trawick at the last conference call that well is actually improving. We're confident that our horizontal Bossier shale which is in the middle Bossier interval is drilled in shale that is rich in silica and quartz and in carbonate, low in clay content. This shale should stimulate very effectively, probably better fract if the efficiency that you might see in the more play rich Haynesville shale.
And I think some of the anecdotal evidence that we've seen from some of the other operators suggests that this middle and upper Bossier which may not be getting the big press that we're seeing from Louisiana is going to be a significant contributor to the entire Bossier shale play in East Texas. So right now we're very optimistic on what we've seen so far both from rock properties in the Bossier and Haynesville shale as well as the production and test rates and gas contents that we've seen to-date.
David Heikkinen
So really, just trying to summarize you guys testing the Bossier and favoring it, it's really the economics of the Bossier because it's thicker and the Haynesville thinned out. It's not that you're not seeing Haynesville. It's just thinner so your economics are better in the Bossier on your acreage probably than they would be in the Haynesville?
Dan Dinges
Well, we have seen some data that suggests now from vertical wells and I think that these are horizontal plays, we have seen some data from vertical wells from the big thick Haynesville shale, big thick 200 feet thick or more that the initial rates after frac are not all that big. I mean a million a half a day.
So you can say that where we're drilling, although it is thinner, the similar type of rates had been established by up in the Minden area with a well that was drilled by the former operator of the property that was bought. So we think that there's still a lot of upside left in the Haynesville even though it is thinner over in the Minden area.
David Heikkinen
Okay. So maybe I'm reading too much into your decision to test the Bossier and the Lime first. It sounds like you're going to test the Haynesville on your acreage as well as beyond just the vertical well?
Dan Dinges
Absolutely we are.
David Heikkinen
So can you give any thicknesses as far as what the Haynesville and Bossier are on your acreage as you move to the South?
Dan Dinges
We're seeing the Bossier and we don't break it out into the so-called Haynesville. I don't buy the terminology. It's all Bossier. It's between 750 and 1000 feet thick and it's all gas charged.

Friday, October 31, 2008

Dallas, Texas Earthquake 10/31/08 - Fort Worth

A few minor Earthquakes hit Texas last night, Dallas and Fort Worth area...near the Barnett Shale.

A 2.5-magnitude earthquake at 11:25 p.m. Thursday near Grand Prairie and a 3.0-magnitude quake was recorded at 12:01 a.m. today in Irving Texas, the U.S. Geological Survey said.

A 3.1 quake was reported about 11:30 a.m. Thursday near McCloud, Oklahoma, 180 miles north of the Dallas Tx area. No injuries or damage were reported there.

Thursday, October 30, 2008

Haynesville Shale: Leasing Prices and Mineral Rights Update

As I updated my www.oilshalegas.com website each quarter, I always like to dig deep into these conference calls to see what the CEO's out there are saying. You can really get some interesting comments. The following is from Seeking Alpha from the Range Resources RRC CEO John Pinkerton on the Haynesville Shale and Mineral Rights leasing.

I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab.

The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick up but we just got to be careful and we'll continue to be careful. We haven't bought any trend acreage, what we call just rank trend acreage in the Marcellus this year

Barnett Shale: Range Resources RRC Update 10/30/08

Range Resources came out with earning last week and updated its investors on their Barnett Shale drilling operations:

In the Fort Worth Basin, third quarter activity was highlighted by drilling success in Hood County where a seven-well package averaged 11.4 days from spud to rig release and achieved average initial production of 2.0 Mmcfe per day per well. These wells were drilled and completed for $1.9 million per well. The effort has been extended onto a new 3,000 acre block immediately adjacent where Range plans to actively drill and complete additional wells. The first two wells on this new acreage block have been completed with initial rates averaging 2.6 Mmcf per day. In southwestern Tarrant County, the Company has spud a 250 foot spaced pilot and is participating in a 330 foot spaced development well in northwestern Ellis County.

Haynesville Shale: SSEY Spuds 2nd Well 10/30/08

South Star Energy ( SSEY ) has come out with news today, 10/30/08, saying that they have spudded their second Haynesville Shale well.

The Company recently announced a successful Haynesville Shale well discovery from its Atkins-Lincoln 17-2 in the Sentell Field. This news is a significant strategic milestone for the Company, further demonstrating its ability to deliver positive results, even during a period of historically unique market conditions within the E & P sector.The Company remains focused on delivering operational success and building shareholder value through solid growth of both reserves and production rates. In light of the successful Haynesville test at the Atkins-Lincoln 17-2 location, the Company spudded the Burt 20-1 Well on October 25, 2008 as a second Haynesville test in the Sentell Field. This well is located in the southwest section of the Company's acreage position and is designed to demonstrate the quality and extent of the Field's Haynesville potential. In addition, the Company continues to examine the objectives of its current drilling program to balance both Cotton Valley and Haynesville development.

The Company is actively working with its senior lender, Macquarie Bank Limited, on balancing the Company's priorities between its Cotton Valley development objectives and actively building on its Haynesville discovery.


Wednesday, October 29, 2008

Haynesville Shale: Encore ( EAC ) 10/29/08 Drilling Update

Encore Acquisition ( EAC ) has come out and updated Shareholders on their progress on the Haynesville Shale.

The Stockman Field in East Texas continues to outperform the Company's expectations.Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D. The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.

The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.


Horn River Shale - Nexen ( NXY ) Canada Shale Update

This morning, Nexen ( NXY ) has come out with earnings and updated investors on their Horn River Shale.

Following the success of last winter's drilling program in the Horn River basin in northeast British Columbia, we decided to drill two horizontal wells this summer. The wells have been drilled and are being fraced. The results from these wells will be taken into consideration as we plan our upcoming winter program for the area.This shale gas play has the potential to become one of the most significant shale gas plays in North America. It has been compared to the Barnett Shale in Texas by other operators in the area as it displays similar rock properties and play characteristics.
We have approximately 88,000 acres in the Dilly Creek area of the Horn River basin with a 100% working interest. As previously announced, we estimate these lands contain between 3 and 6 trillion cubic feet (0.5 to 1.0 billion barrels of oil equivalent) of recoverable contingent resource which could double our total proved reserves. Further appraisal activity is required before these estimates can be finalized and commerciality established.


Tuesday, October 28, 2008

I bought Oil today ( USO ) 10/28/08 - Bullish on Oil

Why did I buy Oil today? If stocks are going to rip higher you better believe these commodities that have gotten crushed will come back as well. Oil is overdue for a bounce and most of the Oil related stocks took off and the end of the day today. I bought the USO at $52 and I see it is running up afterhours over $53.

Yes, I am bullish on Oil once again!

Sunday, October 26, 2008

Bakken Shale Oil Update 10/27/08 - Sanish Three Forks

Newfield Exploration ( NFX ) has come out with an update on their Bakken Shale formation. They also give some insight on the Sanish/ Three Forks area as well where they are drilling for Oil.

October Update - Bakken Formation

Our current net production from the area is approximately 2,500 BOEPD, and our activity level in the greater Williston Basin is expected to increase in 2009. We plan to operate three rigs throughout 2009. Plans include continued development and expansion along the Nesson Anticline and our exploration areas west of the Nesson and in Montana. We have 473,000 gross acres (160,000 net) in the Williston Basin. Our acreage position has prospective targets that include the Bakken Shale, as well as the Madison, Red River and Three Forks/Sanish. The Jorgenson 1-15H, our first Sanish/Three Forks horizontal well, is an apparent success and the well awaits completion at this time. Flow rates are expected in early November. We expect to drill four additional operated wells near this well in 2008

Thursday, October 23, 2008

Haynesville Shale: Encana ( ECA ) 10/23/08 - Operational Update

Encana ( ECA ) has come out with their earnings report as well as their operational report including the Haynesville Shale and Horn River Shale. Operating earnings up 40 percent to $1.92 per share or $1.4 billion

Haynesville Shale: In the third quarter of 2008, we strengthened our position in the Haynesville gas resource play by acquiring 25,000 net acres, increasing ourland position to about 400,000 net acres, plus 63,000 net acres of mineral rights. We continue to see great potential in this promising shale play,"Eresman said. "EnCana, along with our partner, Shell Exploration & Production,has an industry-leading land position in this area of Louisiana. 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 themid-Bossier shale in the fourth quarter.

Horn River Shale: At HornRiver in British Columbia, EnCana and partner Apache Corporation have completed seven wells this year, with one of our most recent wells delivering encouraging results, flowing for the first 30 days at an average of almost8 MMcf/d."

Montney Shale: In northeast British Columbia and northwestern Alberta, our already strong land position in the Montney play hasexpanded to more than 700,000 acres. With that, EnCana has the largest disclosed land base in this emerging unconventional gas field.

Wednesday, October 22, 2008

Haynesville Shale: New Petrohawk Energy ( HK ) Well hitting 17 MCF per day

Petrohawk Energy ( HK ) came out with an operational update 10/21/08 regarding its Haynesville Shale formation and its new shale discovery, Eagle Ford Shale in South Texas.

Petrohawk's third operated well in the Haynesville Shale, the Hunt Plywood 36 #11H (100% WI), located in Section 36, Township 15 North, Range 13 West, was placed on production at a rate of approximately 17.0 Mmcfe/d, on a 22/64" choke with 7,225 pounds flowing casing pressure. The well has averaged 15.4 Mmfe/d over the first 30 days of production.
The Company's first operated Haynesville Shale well, the Elm Grove Plantation (EGP) #63H, has produced for approximately 100 days and has averaged 8.8 Mmcfe/d over this period. Petrohawk's second operated well, the Hutchinson 9 #5H, has been on production for approximately 67 days and has averaged 14.6 Mmcfe/d over that time period. Several additional Haynesville Shale wells are currently being completed.

The Company has instituted a "pre-drill", or spudder rig, program in the Haynesville Shale designed to accelerate the pace of drilling. Ten operated horizontal rigs are currently drilling in the play as well as five spudder rigs. Petrohawk expects to exit 2008 with twelve operated horizontal rigs drilling in the play. To date, the Company has drilled through the Haynesville Shale in a total of 16 wells. The added well control has shown the Shale to be consistently thick and with excellent reservoir quality in all of these wells. With the drilling program currently in place, Petrohawk estimates that approximately 18 wells will be on production prior to the end of the fourth quarter out of a total of 26 wells drilled through the Shale section by the end of the year.

In addition to Haynesville Shale activities in Northwest Louisiana, Petrohawk will begin testing Haynesville and Bossier Shale prospects in Shelby County, Texas, with initial results expected before year end. Two operated rigs will be dedicated to this program during the fourth quarter. Drilling activity will also initiate on acreage included in the previously announced Joint Venture with EOG Resources in Nacogdoches County during the fourth quarter. Three rigs are expected to be operating within this joint venture area, targeting the Haynesville Shale as well as James Lime and Travis Peak formations.

CNX Gas ( CXG ) Operations Update 10/22/08

CNX Gas (CXG ) has come out with really good earnings this morning to kick off the earnings season for the Oil & Gas drillers.

In the Marcellus Shale during the third quarter, CNX Gas drilled its first and second horizontal wells in southwestern Pennsylvania. The first horizontal well cost $6 million and was stimulated with a five-stage slickwater frac. An open flow test was not conducted on this well. It came online October 2, and is producing 1.2 MMcf per day with 4,000 pounds of backpressure. The daily flow rate is expected to increase dramatically over the next few weeks as the backpressure is gradually eased. The nearby coalbed methane gathering system has the capacity to handle up to 2.5 MMcf per day from this horizontal well and is being expanded within the next two weeks to handle additional volumes.
Also," Mr. Albert continued, "the vertical Marcellus Shale well that we turned online in July 2008 is currently producing 450 Mcf per day. We believe that the well has some sand issues, and could return to a daily production rate of 700-800 Mcf after cleaning."
CNX Gas will keep one horizontal rig and one vertical rig running in the Marcellus Shale for the remainder of the year.

In the Chattanooga Shale, CNX Gas drilled three horizontal wells in the quarter, bringing the yearly total to seven, and the project total to eight. No wells were connected during the September quarter, although the fifth well was connected last week. The first four wells are seeing current daily production rates of 230, 160, 100, and 230 Mcf per day, for a total of 720 Mcf per day. The daily rates for the better wells have been stable.

In the Huron Shale during the third quarter, CNX Gas drilled one additional horizontal well in eastern Kentucky. A total of two Huron wells have been drilled in 2008. The rig performing this drilling has returned to Tennessee to drill Chattanooga Shale wells for the remainder of the year. CNX Gas is building out gathering and compression in this area, with an expected in-service date of March 2009.

For more on Natural Gas Shales in the USA and Canada - visit - http://oilshalegas.com

Marcellus Shale: Washington County, Pa Update 10/22/08

Today, 10/22/08, Range Resources ( RRC ) and MarkWest Energy ( MWE ) announced the commencement of the initial phase of Pennsylvania’s first large-scale gas processing infrastructure with the successful launch of a mechanical refrigeration processing plant in Washington County.

Today’s announcement is the culmination of efforts by Range Resources and MarkWest to bring Marcellus Shale gas to the local market. Over the past four years, Range Resources has invested more than $700 million in leasehold, drilling and infrastructure.

MarkWest is investing approximately $200 million to construct midstream infrastructure to gather and process the natural gas that Range Resources is extracting from the Marcellus Shale. MarkWest’s investment includes the refrigeration plant announced today, which has capacity to process 30 million cubic feet per day (Mmcf per day) of natural gas. In addition, MarkWest is constructing a 30 Mmcf per day cryogenic processing plant that is expected to commence operations late in the first quarter of 2009. The cryogenic plant is being constructed next to the refrigeration plant and includes a depropanizer to extract propane from the gas stream, which will be sold regionally. MarkWest’s planned investment also includes a 120 Mmcf per day cryogenic plant with a depropanizer to extract additional natural gas liquids from the gas stream. The 120 Mmcf per day cryogenic plant is expected to be completed in late 2009. MarkWest is also evaluating the installation of a large fractionation facility to further enhance the value of the recovered natural gas liquids. http://oilshalegas.com

Tuesday, October 21, 2008

Eagle Ford Shale - South Texas Oil and Natural Gas

We did some research on the Eagle Ford Shale which has been tested in south Texas. There has been some nice Oil finds as well as natural gas. This shale play has potential!

We've identified three drillers:

Petrohawk Energy ( HK )
TXCO Resources ( TXCO )
St Mary Land & Exploration ( SM )


Today, 10/21/08 - Petrohawk came out with positive results


Eagle Ford Shale: Petrohawk HK New Gas Discovery 10/21/08

Petrohawk Energy ( HK ) has come out today, 10/21/08, and stated that they have discovered a new natural gas field in South Texas called the Eagle Ford Shale. I have never heard of this shale formation but I will be doing research and posting it on http://oilshalegas.com

Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) announced a significant new natural gas field discovery in the Eagle Ford Shale in South Texas. This new field in La Salle County, Texas, was discovered after extensive regional subsurface and seismic mapping, geochemical analysis and petrophysical study. The Company has leased over 100,000 net acres in what it believes to be the most prospective areas for commercial production from the Eagle Ford Shale. The field is located immediately south of the Stuart City Field, which is on the Edwards Reef Trend that extends across South Texas.

"This discovery folds perfectly into our portfolio of unconventional resource assets," said Dick Stoneburner, Chief Operating Officer. "Petrohawk's staff has extensive experience in the acquisition and development of horizontal plays as exhibited by our results in the Haynesville Shale and Fayetteville Shale plays. Leveraging that expertise to uncover new opportunities like the Eagle Ford Shale adds significantly to our playbook."

The discovery well, the STS #241-1H, was drilled to an approximate true vertical depth of 11,300 feet during which extensive coring and open hole logging was performed. An approximate 3,200-foot lateral was drilled and subsequently fracture stimulated with over two million pounds of sand in ten stages. The well was placed on production at a rate of 9.1 million cubic feet of natural gas equivalent per day (7.6 million cubic feet of natural gas per day and 250 barrels of condensate per day). A confirmation well, the second well drilled on the project, the Dora Martin #1H, which is approximately 15 miles from the discovery well, has been drilled, cored and logged. The quality of the Eagle Ford Shale in this well appears to be superior to that found in the STS #241-1H. The Company is currently drilling the lateral on this second well. A third well is expected to spud by mid-November.

Petrohawk expects drilling and completion costs for development wells to range between $5 and $7 million. Development costs, including one rig that will run continuously on the project, have already been included in the Company's published 2008 and 2009 capital plans. The Company plans to access existing gathering and transportation infrastructure, further improving lower overall development costs.
Petrohawk is the operator and owns 90% working interest in the project, with 10% owned by industry partners.


Keep in mind, part of the Haynesville Shale is located in East Texas extending into Louisiana.

Monday, October 20, 2008

Haynesville Shale: Desoto Parish - Mainland Resources MNLU Spuds first Well 10/20/08

This morning, 10/20/08, Mainland Resources ( MNLU ) is out saying that they have spudded their first Haynesville Shale well in DeSoto Parish Louisiana.

Mainland Resources, Inc reports that its JV Partner
and operator has commenced drilling operations on the first JV well to evaluate potential
of the Haynesville Shale gas formation on Mainland’s Louisiana leases.
Mainland Resources, Inc. holds interest in approximately 2,695 net acres, which form
part of the East Holly Field in De Soto Parish, northwest Louisiana.

The Griffith No. 1-H well is the first well to be drilled on Mainland’s property based on
Company data and proximity to several vertical Haynesville wells waiting on completion,
two horizontal wells being drilled, and another Haynesville well recently permitted. The
JV Partner and operator will pay 100% of the costs of this first well drilled on Mainland’s
leases to earn 60% of the first well as part of its agreement with the Company.

Company President, Mike Newport states, “We are now drilling the first of what we
believe could potentially be many wells on our DeSoto Parish Leases. Management
expects that this new well will provide results showing the gas potential of the
Haynesville shale on our property.”

According to industry sources, the Haynesville Shale is now regarded as the 4th
largest natural gas field in North America, with the leading exploration company in the
play announcing it is projecting 52 BCF (Billion Cubic Feet) of recoverable gas per
section in the Haynesville fairway.


Full List of Haynesville Shale Companies and Stock Symbols:

Marcellus Shale - Utica Shale Meetings - New York

The New York State Department of Environmental Conservation ( DEC ) has finalized logistics for a series of meetings to give the public an opportunity to participate in the analysis of the potential environmental impacts of high-volume hydraulic fracturing of horizontal wells in New York's natural gas-bearing Marcellus and Utica shale formations.

DEC had previously announced that six meetings would be scheduled throughout the Southern Tier and Catskills in November and early December. Now finalized, the locations are:

Thursday, November 6, 2008: Allegany-Limestone High School Auditorium/Theater, 3131 Five Mile Road, Allegany, NY14706.

Wednesday, November 12, 2008: Haverling High School Auditorium, 25 Ellis Avenue, Bath, NY 14810.

Thursday, November 13, 2008: Southside High School Auditorium, 777 South Main Street, Elmira, NY 14904.

Monday, November 17, 2008: Broome County Community College, West Gym, 901 Upper Front Street, Binghamton, NY 13902.

Tuesday, December 2, 2008: SUNY/Oneonta, Hunt Union Ballroom, 108 Ravine Parkway, Oneonta, NY 13820.

Thursday, December 4, 2008: Sullivan County Community College, Fieldhouse, 112 College Road, Loch Sheldrake, NY 12759.


Halliburton HAL 3rd Quarter Earnings .76EPS - Montney Shale, Bakken Shale

Halliburton ( HAL ) released 3rd quarter earnings this morning 10/20/08 and provided updates on the Montney Shale of Canada and the Bakken Shale of North Dakota.

For the third quarter, HAL earned .76 Earnings per share.

In Canada's Montney shale play, Halliburton completed its 50th horizontal CobraMax(R) job. The CobraMax(R) process now averages less than eight hours per zone from cut to cut, an improvement from over 24 hours on earlier wells.

Halliburton has set its 900th Swellpacker(R) isolation system in horizontal Bakken wells in the Williston Basin. The use of this packer system has allowed operators to compartmentalize their wellbores for fracture completions resulting in improved production. Delta Stim(R) sleeves are also used with the Swellpacker(R) systems greatly reducing the time required to complete a well.

For a full earnings calendar - visit - http://blackberrystocks.com

Sunday, October 19, 2008

Haynesville Shale: Leasing & Mineral Rights Problems

There is no doubt that the sudden drop in natural gas prices has had a huge impact on the Haynesville Shale formation in East Texas and Louisiana. If any of these Shale plays in the USA and Canada can overcome this type of drop it would be the Haynesville Shale and Barnett Shale.

With many companies such as Chesapeake Energy ( CHK ) and Petrohawk Energy ( HK ) cutting back on drilling and their budget, mineral rights leasing will fall as well. In fact, Landowners are nervous about what I described above. Some even fearing they won't get paid. This is why it is so important when signing a mineral rights lease that you take it seriously and hire a great lawyer to represent you.

Here is a great article about what is happening right now with regards to the land leasing from Chesapeake Energy. http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20081018/NEWS01/810180357/1060

"The key is in the wording, Fitzgerald said. What she's witnessed in the past few days is Chesapeake not honoring an "agreement to lease" prepared by the company's own legal counsel. The document, which landowners she represented opted for instead of a letter of intent, states it is a binding and enforceable agreement but it is still not the actual lease."


Saturday, October 18, 2008

Marcellus Shale - RRC Range Resources Earnings 10/22

This coming week, the natural gas market will be eyeing Range Resources ( RRC ) as this company will be releasing earnings on Wednesday 10/22/08 at 4pm.

Range Resources is one of the biggest operators in the Marcellus Shale natural gas field and it will be interesting to see what they have to say about operations given the steep drop in natural gas prices. Chesapeake Energy ( CHK ) is reporting that it will try to sell its Marcellus Shale stake for 2.5 - 3 billion in cash to raise capital.

I will have an update later this week....for a full earnings calendar visit http://blackberrystocks.com

Thursday, October 16, 2008

Fayetteville Shale: EPEX Edge Petroleum Update 10/16/08

Edge Petroleum is out with an update on the Fayetteville Shale.

In the Fayetteville/Moorefield Shale play in Arkansas, we plan to participate with our partners in the drilling of at least two to three wells early in 2009. The proposed locations are near recently completed wells with initial rates in excess of 2 MMcfe per day. In addition, we continue to seek a permit from the Arkansas Oil & Gas Commission to re-inject produced water into an existing well. Once granted, we plan to bring three shut in wells with working interests from 80% to 100% back online. These wells, which tested at very favorable initial gas rates remain shut-in due to excessive water production from an underlying water-bearing formation.


XTO Energy CFO Sells Stock

Independent oil and gas producer XTO Energy Inc.'s executive vice president and chief financial officer Louis Baldwin has sold 535,700 shares of the company’s common stock.

It hasn't been certain whether this was involuntary like last weeks dumping by Chesapeake Energy's CEO.

XTO Energy is very active in the Marcellus Shale, Bakken Shale, and Haynesville Shale


Tuesday, October 14, 2008

Haynesville Shale: QBC Cubic Energy Looking to Sell 10/14/08

With crashing stock markets and energy prices....many companies are looking to get out of the shale plays lately. I had a feeling this was going to happen. It was almost like a bubble when every company and their mother was buying up mineral rights in the Haynesville Shale natural gas field.

Cubic Energy ( QBC ) announces today that due to ever increasing unsolicited interest in the Company's assets in North Louisiana, the Company has engaged RBC Richardson Barr Securities, Inc., an affiliate of Royal Bank of Canada Capital Markets ("RBC") to explore all strategic alternatives on behalf of the Company and its shareholders. The Company's asset position in Caddo and DeSoto Parishes includes the Rodessa, Pettet, Upper and Lower Hosston, Cotton Valley and the Haynesville Shale. In addition, there is significant interest in the Company's gathering and pipeline systems.

As the Company now holds substantially all of its acreage by production, and has completed its own pipelines and infrastructure, the Company is afforded the opportunity to evaluate all its options in order to increase shareholder value.

Friday, October 10, 2008

Chesapeake Energy ( CHK ) News 10/10/08

Chesapeake Energy ( CHK ) just came out with major news that is sending its stock soaring in afterhours trading tonight.

Dow Jones is reporting:

  • Chesapeake In Talks With 'Multiple Parties' On Midstream Ops Stake
  • Chesapeake Energy CEO Involuntarily Sells All Shrs To Meet Margin Loan Calls
  • Chesapeake: Further Cuts To 4Q CapEx Are Underway >CHK
  • Chesapeake Energy ( CHK ) sells Marcellus Stake for 2.5- 3 Billion.

So Aubry got flushed out.....and now you can see why the stock got murdered over the past three weeks with the addition of Hedge Fund Selling.

Thursday, October 9, 2008

Woodford Shale: AOG Sells Woodford Stake

Aurora Oil & Gas has sold its stake in the Woodford Shale:

Sale of Oklahoma Project Area

Effective September 15, 2008, Aurora Oil & Gas Corporation ("Aurora") completed the sale of approximately 33,000 net acres, representing its entire Woodford shale position, for cash and other consideration valued in excess of $15 million. The transaction was completed with a private operator, Presidium Energy, LC ("Presidium"), which had been working to purchase the project from Aurora for several months. During that time period, Presidium made a $2 million non-refundable payment for the acreage and paid over $1 million of obligations to Aurora's operating partner in Oklahoma. At closing, Presidium made an additional $1 million cash payment and provided a promissory note in the amount of $12 million. In addition, Presidium assisted in negotiating a resolution to the lawsuit between Aurora and its operating partner, which led to a dismissal of the litigation, with prejudice.

Tuesday, October 7, 2008

Dryships DRYS Analysis 10/7/08

DryShips ( DRYS ) Technical Analysis Stock Chart - http://blackberrystocks.com/drys.html

This is why you don't try catching a falling knife....who knows where the bottom will be...but when it does form, you could get a 50% move in 3 or 4 days. Drys looks to have support $16 from early 2007. Even if you wait until Drys closes back over $30 you could catch a nice rally off that alone.

For more technical charts - go to http://blackberrystocks.com/charts.html

Oil Shale: 2.5 Million Acres Opened - Green River Basin 10/7/08

The Beauru of Land Management has opened 2.5 million acres in the Green River Basin for drilling of Oil Shale.

The Bureau of Land Management (BLM) undermined the Federal Land Policy and Management Act and the National Environmental Policy Act when it decided to amend 12 land management plans for Colorado, Utah and Wyoming without providing an opportunity for the public to protest, The Wilderness Society charged in a letter sent today to the U.S. Department of the Interior. The plans were amended in particular to expedite the commercial development of oil shale in the Green River Basin of the three states.

Full Article - http://yubanet.com/usa/BLM-Ignores-Process-2-5-Million-Acres-to-Be-Opened-for-Oil-Shale-Development.php

Thursday, October 2, 2008

Cotton Valley & Haynesville Shale Discoveries 10/02/08

Southern Star Energy came out with the following news on a new Cotton Valley Formation discovery. They will also be drilling down into the Haynesville Shale.

Southern Star Energy Inc. (OTC Bulletin Board: SSEY - News; the "Company"), a fast-growing E&P company with reserves and production from leases located in northern Louisiana, today announced that it has successfully drilled and logged the targeted Cotton Valley interval in its Atkins-Lincoln 17-2 Well with positive results. The well reached planned intermediate pipe depth of 9,500 feet on September 26, 2008. Subsequent to logging the Cotton Valley and shallower horizons, 7-inch casing was set at 9,500 feet and the well is drilling ahead to test the Haynesville Shale at a planned total depth of 11,000 feet. This well is strategically located in the center section of the Company's Sentell Field in Bossier Parish, Louisiana. The Atkins-Lincoln 17-2 is the second well in the Company's 2008 development program and the first of two Haynesville Shale vertical test wells in the Sentell Field planned this year.

Full Article Here

For more on the shale plays in the USA and Canada, visit www.oilshalegas.com

Haynesville Shale: ( HK ) PetroHawk Energy Update 10/02/08

Like Chesapeake Energy ( CHK ), Petrohawk Energy ( HK ) reduces capital budget for 2009 as energy prices decline. Petrohawk plans to focus more on the Haynesville Shale & the Fayetteville Shale.

The reallocation of capital reflects an increased emphasis on development of non-proved locations in Petrohawk's successful Haynesville and Fayetteville Shale projects, with the benefit of higher expected overall reserve growth potential for the Company. Petrohawk's production guidance for 2009 represents 25% to 35% drillbit growth over 2008 estimated annual production of 305 million cubic feet of natural gas equivalent per day (Mmfe/d).


For more on the shale plays in the USA and Canada...visit www.oilshalegas.com