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.