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.