Thursday, February 19, 2009

Haynesville Shale: XTO Energy 2009 Panola County

XTO Energy has come out with earnings today, 2/19/09, and updated investors on its haynesville shale operations. XTO talks about its East Texas properties below.

From Seeking Alpa

We drilled first Haynesville shale well in western Panola County, the New Horizon's number one that came in at 8.5 million a day, that is not an IP, that well averaged over 8 million a day for the first 15 days. It's currently offline because of the DCP Cartage flat (ph) issue, should be back up next week.

We believe that well from the way we're choking and holding our performance would have made over 8 million a day for the first month. If you look at the Haynesville wells you are seeing some that have 15 million a day, first month, you are seeing a lot that are 45 million a day first month sales. So, I would say this well as far west as it is, averaging 8 million a day is a good precursor for where our acreage is going to be plenty good on the Texas side

And last but not least, we have had an extension area of south of Bald Prairie and Robertson County that we have been working on for two or three years, have increased our position here to almost 80,000 net acres and have started in earnest to drill development wells down there and had two wells coming at 6 million a day in the quarter from the land and Bossier and that gives us lot of hope and belief that area will pan out to be a major growth area, of course in future.