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.