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.

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