Wednesday, August 4, 2010

Karnes County, TX: Eagle Ford Shale

By Andrea:

PXD Pioneer Natural Resources Company (NYSE:PXD) continues to expand its oil capabilities with yet another successful well in the Eagle Ford Shale in Karnes County, TX:

PXD Pioneer Natural Resources Company (NYSE:PXD) announced its fifth successful well in the Eagle Ford Shale in South Texas. The Chesnutt Gas Unit #1 well, which is located in Karnes County, Texas, tested at an initial production rate of 15.6 million cubic feet of gas equivalent per day (including 14.1 million cubic feet of gas per day and 255 barrels of condensate per day) on a 24/64 inch choke with approximately 5,600 pounds per square inch wellhead flowing pressure. The liquids-rich gas contains 1,200 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,300 feet and completed in a 4,100-foot lateral section with a 12-stage fracture stimulation. Production from the well is expected to flow to sales beginning in the third quarter after completion of a Pioneer-operated gas treating facility where the condensate will be separated from the gas.

"We are very excited to have sucessfully drilled another highly productive well in the Eagle Ford Shale. The Chesnutt #1 provides additional confidence in the development potential of the 1,750 Eagle Ford Shale locations we have identified across our large 310,000 acre position. This well also further validates the attractive liquids yields we expect to realize in the condensate window of the play, where approximately 70% of our acreage lies. With a gross resource potential of more than 11 trillion cubic feet equivalent, we expect the Eagle Ford Shale to add significant production and reserves while enhancing shareholder value."

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