Tuesday, September 28, 2010

Goshen County - Niobrara Shale Update

By Andrea: http://oilshalegas.com

Samson Oil and Gas (SSN) recently announced the closing of its Goshen County Assets located in the Niobrara Shale. The company expects to receive a total of $74.1 million at the end of the total sale:

Samson Oil & Gas Limited (SSN) advises that it has closed an additional portion of its previously announced Goshen County transaction, confirming that an additional US$6.3 million was received this week in consideration for delivery of drilling permits for three State leases.

Samson presently expects to close the final portion of the sales transaction during the week of September 27th. Samson anticipates receiving net consideration of at least US$2.2 million at that closing and considers it likely that it will receive another US$ 1.9 million as a result of curing various title defects. Thus, the total transaction to date can be summarized as follows:

Cash received to date: US$ 70.0 million

Most likely cash to be received the week of September 27th US$ 4.1 million

Most likely total consideration US$ 74.1 million

Under the sale and purchase contract that Samson entered into on June 24th with the buyer, Chesapeake Energy Corporation, Chesapeake acquired 100% of Samson’s working interest in the subject leases but Samson has retained a royalty averaging 3.8% across those leases. While Samson therefore holds an indirect financial interest in the future development of the leases, Samson has no control over the pace or scope of that development. The royalty rate has changed from that previously announced because during the course of this transaction several top leases and lease extensions have been purchased or entered into, and the underlying royalty rates have modified the Samson-retained royalty.

Samson has also retained 17,000 net acres immediately to the north of the leases that have been sold and intends to pursue the appraisal and development of that area. To this end it has engaged a seismic acquisition company to acquire a 65.5-square-mile 3-D seismic survey, which will image this acreage block. Permitting for this seismic survey has commenced and it is expected that the acquisition will commence mid-late October. The survey has several objectives. Firstly, it will help Samson to identify the brittle portions of the Niobrara Formation that are more conducive to natural fracturing as well as the location and orientation of the natural fractures. Secondly, the 3-D seismic data will help image two conventional targets, the J Sand and the Codell Formation which have proven to be productive in the area.

The 3-D seismic data is expected to be available for interpretation in the first quarter of 2011 and the plan is to drill two initial appraisal wells utilizing horizontal multi-stage fracture stimulation methods proven successful in the Bakken Formation in North Dakota. If these wells perform adequately then the project would move to a full field development.

Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN". Samson's American Depository Shares (ADSs) are traded on the New York Stock Exchange AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,663 million ordinary shares issued and outstanding, which would be the equivalent of 83.15 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$1.39 per ADS on September 21st, 2010 the company has a current market capitalization of approximately US$115.6 million. Correspondingly, based on the ASX closing price of A$0.07 on September 21st, 2010, the company has a current market capitalization of A$ 116.4 million.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Callon Petroleum Corp. - Haynesville Shale update

By Andrea: http://oilshalegas.com

Callon Petroleum Corp. (CPE) has successfully completed its first Haynesville Shale well in north Louisiana. The George R. Mills No. 1H Well was placed on production on September 3, 2010. The rate is being restricted to between 10 and 12 gross MMcfe/d to prevent any damage to the completion and maximize ultimate recovery. The well is currently flowing up the casing at a rate of 10.5 gross MMcfe/d on an 18/64-inch choke and a wellhead casing pressure of 7,000 pounds per square inch. The well continues to cleanup while flowing back at restricted rates. Callon has no remaining drilling obligations in its Haynesville Shale position and currently plans to remobilize a rig to the area once natural gas prices warrant continued development.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Callion Petroleum Company: Permian Basin (Wolfberry) Update

By Andrea: http://oilshalegas.com

Callon Petroleum Company (CPE) recently provided an update on its onshore drilling activity in the Permian Basin:

Results in the company's Permian Basin Wolfberry development drilling program are exceeding expectations. As a result, earlier this month the company added a second drilling rig in the play. Ten wells have been drilled to date and the company plans to drill a total of 23 net wells by the end of 2010. Callon's net production has increased from 350 net Boe/d to 500 net Boe/d in September as a result of its development drilling activity. The company expects to exit the year at nearly 1,000 net Boe/d. In addition, Callon has increased its interest in the East Bloxom Development Area, located in Upton County, from an average 47% working interest to 100% working interest through a number of small acquisitions and a farm-ins. As a result, Callon controls the activity in three development areas encompassing 11 sections (6,656 net acres).

Callon currently has an inventory of 330 well locations in the Wolfberry oil play, 154 of which are 40-acre development locations. As operator and with no significant drilling obligations, the company can increase or decrease its pace of development as appropriate

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Garret County, MD: Marcellus Shale Update

By Andrea: http://oilshalegas.com

On August 23, 2010, Enerplus Resources Fund (ERF) closed the acquisition of 58,500 net acres of undeveloped land in the Marcellus shale natural gas play in northwest West Virginia and Maryland. The acreage is predominantly located in Preston County in West Virginia and Garret County in Maryland creating a new, concentrated land position that Enerplus will operate with an average 90% working interest. Enerplus has now invested over $150 million in the Marcellus shale gas play in 2010 acquiring two key operated areas comprised of approximately 70,000 net acres in addition to the 127,000 net acres of non-operated land that has been acquired since 2009.

These new lands in West Virginia and Maryland are in emerging areas with limited existing development however we believe that the geologic characteristics are similar to Fayette and Somerset counties of Pennsylvania. Early results from offset operators including those of our joint venture interests have been encouraging. While no proved or probable reserves have been acquired, we estimate original gas in place on this acreage of approximately 50 to 60 Bcf per 640 acres.

The concentrated nature of this operated position, together with the long tenure of the leases provides Enerplus the opportunity to control the pace of development and spending. A majority of the leases have two to three years remaining on the original five-year term with an additional five-year extension option at nominal cost. Our initial plans are to shoot seismic and begin the permitting process this fall and we expect to begin drilling in 2011.

Enerplus has captured a meaningful position in one of the best shale gas plays in North America that we believe will provide us with significant production growth over the next four years. To date, we are encouraged by the results of our development plans and current production is approximately 15 MMcf/day. We intend to continue to manage the commodity and asset mix of our portfolio to ensure we have flexibility in our capital spending. We are evaluating the possibility of reducing our non-operated acreage position given the addition of our new operated acreage and in order to maintain a desired level of exposure.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Monday, September 27, 2010

Crockett County, Texas: Permian Basin Update

By Andrea: http://oilshalegas.com

El Paso Corp. (EP) recently won a 123,100 acre lease in the Wolfcamp which is part of the Permian Basin shale. The land covers Reagan County, Crockett County, Upton County and Irion County, all located in Texas:

El Paso Corporation (EP) announced that it was the winning bidder for leases covering approximately 123,100 acres in Reagan, Crockett, Upton and Irion counties in the September 22, 2010 University of Texas lease sale. The acquired leases target the Wolfcamp shale and add to approximately 12,000 net acres of existing leasehold in this play. El Paso now has a material position in a new oil shale program with significant resource and production potential.

"We are very excited to announce our entry into a promising new oil shale. Our acreage acquisition is the culmination of an extensive regional study by our technical team, and we expect it to become a new oil-focused core area," said Brent Smolik, president of El Paso Exploration & Production Company. "Today's announcement represents our second organic shale entry following our successful acquisition of more than 170,000 net acres in the Eagle Ford shale. The leasehold we have acquired has multiple pay opportunities and the combination of large contiguous blocks and a single royalty owner give us tremendous operational flexibility. We intend to leverage the successes we have had in our Haynesville and Eagle Ford shale programs, and we will update the market on our plans for the Wolfcamp shale during our third quarter earnings conference call on November 3, 2010."

El Paso remains committed to managing its E&P program for returns and having E&P live within its means. In addition, the company remains committed to generating free cash flow in 2012. To that end, the $180 million cost of the acquired acreage will be funded over time through portfolio rationalization, and future development capital will compete with other programs in the portfolio.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Sunday, September 26, 2010

American Petro-Hunter Inc. - Woodford Shale Update

By Andrea: http://oilshalegas.com

American Petro-Hunter, Inc. (AAPH.OB) recently spud a new well in the Woodford shale located in North Oklahoma -

American Petro-Hunter, Inc. (AAPH.OB) recently announced the commencement of drilling operations and the spud of the NOJ26 Well at the North Oklahoma Shale Oil Project. Surface casing has been set and the operator reports that drilling is moving ahead.

The planned T.D. (total depth) of the well is 4,000 feet and is anticipated to intersect multiple objectives that include the primary oil shale along with excellent potential in the Simpson and Wilcox formations. As reported previously, the Wilcox is considered one of the most prolific producers in the area and nearby existing analogous production has cumulatively produced 80,000 barrels of oil per well. Wilcox wells often deliver initial production rates in excess of 100-120 BOPD with 200 MCF of gas.

The Company is satisfied that the multiple objectives considerably minimize risk given the three potentially productive formations and will significantly increase the overall data to be gained regarding shale response to acidization and fracturing. Once this well is drilled, completed and put into production, the Company intends to immediately move forward and implement plans for the commencement of operations at the previously announced horizontal well destined for a nearby location within the property.

NOJ26 will incorporate extensive oil shale analysis tests in order to optimize the stimulation program in order to maximize commercial production. If the stimulation procedure returns flow rates as suggested by preliminary data, it is estimated that the well could potentially be a 200 plus BDP producer. American Petro-Hunter is a 50% partner in the well.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Preston County, WV - Marcellus Shale Update

By Andrea: http://oilshalegas.com

On August 23, 2010, Enerplus Resources Fund (ERF) closed the acquisition of 58,500 net acres of undeveloped land in the Marcellus shale natural gas play in northwest West Virginia and Maryland. The acreage is predominantly located in Preston County in West Virginia and Garret County in Maryland creating a new, concentrated land position that Enerplus will operate with an average 90% working interest. Enerplus has now invested over $150 million in the Marcellus shale gas play in 2010 acquiring two key operated areas comprised of approximately 70,000 net acres in addition to the 127,000 net acres of non-operated land that has been acquired since 2009.

These new lands in West Virginia and Maryland are in emerging areas with limited existing development however we believe that the geologic characteristics are similar to Fayette and Somerset counties of Pennsylvania. Early results from offset operators including those of our joint venture interests have been encouraging. While no proved or probable reserves have been acquired, we estimate original gas in place on this acreage of approximately 50 to 60 Bcf per 640 acres.

The concentrated nature of this operated position, together with the long tenure of the leases provides Enerplus the opportunity to control the pace of development and spending. A majority of the leases have two to three years remaining on the original five-year term with an additional five-year extension option at nominal cost. Our initial plans are to shoot seismic and begin the permitting process this fall and we expect to begin drilling in 2011.

Enerplus has captured a meaningful position in one of the best shale gas plays in North America that we believe will provide us with significant production growth over the next four years. To date, we are encouraged by the results of our development plans and current production is approximately 15 MMcf/day. We intend to continue to manage the commodity and asset mix of our portfolio to ensure we have flexibility in our capital spending. We are evaluating the possibility of reducing our non-operated acreage position given the addition of our new operated acreage and in order to maintain a desired level of exposure.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Dunn County and McKenzie County, ND: Bakken Shale Update

By Andrea: http://oilshalegas.com

Recently, Enerplus Resources Fund (ERF) acquired 46,500 net acres in the Bakken Shale across Dunn and McKenzie County, ND. The acquisition includes roughly 800 bbls/day of light crude oil production and around 10 million BOE:

Building on our existing Bakken land base in North Dakota, Enerplus has entered into an agreement to acquire an additional 46,500 net acres (72 sections) of land in the Fort Berthold area of Dunn and McKenzie counties in North Dakota. These lands are directly adjacent to our existing land holdings in this area and are prospective for light crude oil in the Bakken and Three Forks formations. The acquisition materially expands our current position to over 70,000 net acres (109 sections) in the Fort Berthold area, the majority of which will be operated by Enerplus with a greater than 90% working interest. Enerplus has proven expertise in this area and recent drilling results have been above expectations. With this acquisition, we now have over 210,000 net acres of undeveloped land with early stage Bakken and Three Forks potential in North Dakota and Saskatchewan in addition to our core Bakken field at Sleeping Giant in Montana.

The acquisition includes approximately 800 bbls/day of light crude oil production and proved plus probable reserves of 10 million BOE primarily attributable to the Bakken formation based upon our internal evaluation. This compliments our existing estimate of eight million BOE of unbooked proved plus probable reserves in this area. The purchase price before closing adjustments is US$456 million and will be funded through Enerplus' existing credit facility. The acquisition is expected to close in October 2010.

Enerplus has been active in the Fort Berthold area since late 2009 and over the past year we have participated in the drilling of nine operated horizontal wells, six of which have been completed to date. The lateral length of these wells has ranged from 4,300 feet with 12 frac stages for the short lateral wells to 9,000 feet with 24 frac stages for the long lateral wells.



<<>>


Production from the long lateral wells has been limited due to fluid handling capacity.



Our internal assessment of the Bakken potential in this area is approximately five to six million barrels of original oil in place per section. Based upon a drilling density of two wells per section (two long lateral wells per 1,280 acres or two short lateral wells per 640 acres) with an approximate 15% recovery factor, we estimate an additional 50 million barrels of best estimate contingent resources on our combined working interest lands in the Fort Berthold area in addition to the 18 million BOE of proved plus probable reserves. We also believe the lands are prospective for the Three Forks formation for which we have estimated four to five million barrels of original oil in place per section. However, given the limited production data available, we are in the process of evaluating the potential recoveries and development opportunity that may exist in the Three Forks.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Gastar Exploration (GST): Marcellus Shale Update

By Andrea: http://oilshalegas.com

Gastar Exploration Ltd. (GST) recently entered into a joint venture with Atinum Marcellus LLC., where Atinum will acquire 21.43% of Gastar's Marcellus Shale Assets:

Gastar Exploration Ltd. (GST) announced recently (Sept 22, 2010) that it has entered into a joint venture agreement with Atinum Marcellus I LLC, an affiliate of Atinum Partners Co., Ltd, a leading investment firm located in the Republic of Korea. Pursuant to the agreement, Gastar will assign an initial 21.43% interest to Atinum in all of its existing Marcellus Shale assets in West Virginia and Pennsylvania, approximately 34,200 net acres, and certain producing shallow conventional wells in a transaction valued at approximately $70 million.

Under the terms of the transaction, Atinum will pay Gastar $30 million in cash upon closing and an additional $40 million in the form of a drilling carry. Upon the completion of the funding of the drilling carry, Atinum will own a 50% interest in the 34,200 net acres of Marcellus Shale rights currently owned by Gastar. Gastar will continue to serve as operator of all of the Marcellus Shale interests in the JV. The transaction is expected to close within 30 to 45 days and is contingent upon the receipt of certain required approvals from government agencies in the Republic of Korea and other customary closing conditions.

The terms of the drilling carry call for Atinum to fund its ultimate 50% share of drilling, completion and infrastructure costs along with 75% of Gastar's ultimate 50% share of those same costs until the $40 million carry has been satisfied. Gastar and Atinum are pursuing an initial three-year development program that calls for the partners to drill one horizontal Marcellus Shale well during the remainder of 2010 and a minimum of 12 horizontal wells in 2011 and 24 horizontal wells in each of 2012 and 2013.

An initial area of mutual interests ("AMI") will be established for potential additional acreage acquisitions in Ohio and New York along with the counties in West Virginia and Pennsylvania in which the existing interests are located. Within the initial AMI, Gastar will act as operator and will offer any future lease acquisitions to Atinum on a 50/50 basis, while Atinum has agreed to pay Gastar on an annual basis an amount equal to 10% of lease bonuses and third party leasing costs up to $20 million and 5% of the costs on activities above $20 million. Until June 30, 2011, Atinum will have the right to participate in any future leasehold acquisitions made by Gastar, outside of the initial AMI and within West Virginia or Pennsylvania, on terms identical to those governing the existing Marcellus JV.

J. Russell Porter, Gastar's President and CEO, commented, "We are pleased to announce this transaction and we look forward to our partnership with Atinum Partners. This joint venture will allow Gastar to accelerate development of our Marcellus Shale assets while maintaining a low level of leverage and a high degree of financial flexibility. This transaction also realizes a significantly higher valuation for our Marcellus Shale assets than what has been reflected in our share price and thus made a joint venture the least dilutive method to finance development. We may utilize the proceeds from this transaction to help fund our Marcellus Shale development plans, future drilling and development of our East Texas asset, lease or property acquisition opportunities and potential debt reduction."

Kyung Soo Chung, President and CEO of Atinum Partners, commented, "We are excited about the opportunity to invest in the Marcellus Shale and to partner with an experienced operator such as Gastar. This is our third investment in the U.S. energy sector in the last 12 months, continuing our strategy to actively invest in significant growth opportunities."

Vinson & Elkins LLP acted as legal advisor for Gastar. BMO Capital Markets acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor for Atinum.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Saturday, September 25, 2010

Wise County, Texas: Barnett Shale Update

By Andrea: http://oilshalegas.com

The following companies began drilling new wells in Wise County, Texas in the Barnett shale this week:

-Devon Energy Production (DVN): 2 horizontal wells

-E.C. Stryker, Decatur: 1 vertical well

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Johnson County, Texas: Barnett Shale Update

By Andrea: http://oilshalegas.com

The following companies have begun drilling horizontal wells in Johnson County, TX in the the Barnett Shale this week:

-Chesapeake Operating (CHK): 3 horizontal wells
-Devon Energy Production (DVN)
-EOG Resources (EOG)
-XTO Energy (COH)

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Denton County, TX: Barnett Shale Update

By Andrea: http://oilshalegas.com

The following companies have begun drilling horizontal wells in Denton County, Texas in the Barnett Shale this week:

-Devon Energy Production (DVN): horizontal off Swafford Road, north of Farm Roads 156/407.
-Williams Production Gulf Coast L.P., Fort Worth: horizontal off Red Rock Lane, south of I-35W/Texas 114.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Tarrant County, TX: Barnett Shale

By Andrea: http://oilshalegas.com

The following companies have begun drilling horizontal wells this week in Tarrant County, Texas in the Barnett Shale:

-Carrizo Oil & Gas (CRZO), Houston
-Chesapeake Operating (CHK), Oklahoma City
-Devon Energy Production Co. (DVN), Oklahoma City
-XTO Energy (COH), Fort Worth

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Reagan County, Texas: Permian Basin Shale Update

By Andrea: http://oilshalegas.com

El Paso Corp. (EP) recently won a 123,100 acre lease in the Wolfcamp which is part of the Permian Basin shale. The land covers Reagan County, Crockett County, Upton County and Irion County, all located in Texas:

El Paso Corporation (EP) announced that it was the winning bidder for leases covering approximately 123,100 acres in Reagan, Crockett, Upton and Irion counties in the September 22, 2010 University of Texas lease sale. The acquired leases target the Wolfcamp shale and add to approximately 12,000 net acres of existing leasehold in this play. El Paso now has a material position in a new oil shale program with significant resource and production potential.

"We are very excited to announce our entry into a promising new oil shale. Our acreage acquisition is the culmination of an extensive regional study by our technical team, and we expect it to become a new oil-focused core area," said Brent Smolik, president of El Paso Exploration & Production Company. "Today's announcement represents our second organic shale entry following our successful acquisition of more than 170,000 net acres in the Eagle Ford shale. The leasehold we have acquired has multiple pay opportunities and the combination of large contiguous blocks and a single royalty owner give us tremendous operational flexibility. We intend to leverage the successes we have had in our Haynesville and Eagle Ford shale programs, and we will update the market on our plans for the Wolfcamp shale during our third quarter earnings conference call on November 3, 2010."

El Paso remains committed to managing its E&P program for returns and having E&P live within its means. In addition, the company remains committed to generating free cash flow in 2012. To that end, the $180 million cost of the acquired acreage will be funded over time through portfolio rationalization, and future development capital will compete with other programs in the portfolio.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

Webb County, TX: Eagle Ford Shale Pipeline

By Andrea: http://oilshalegas.com

Swift Energy will soon begin construction of a pipeline through Webb County, TX in the Eagle Ford shale, expected to be completed by December 1, 2010:

Swift Energy Company (SFY) recently announced that it has entered into a long term agreement for natural gas gathering and treating services in South Texas with Meritage Midstream Services’ subsidiary, Eagle Ford Escondido Gathering. This agreement will involve the construction of a new pipeline to the Company’s Fasken operating area in Webb County, TX. Swift Energy will have up to 40 million cubic feet of gas per day of firm capacity on this new pipeline. The Company currently expects all required construction to be completed by December 1, 2010.

Swift Energy has agreed to a long term sales contract with Kinder Morgan Texas Pipeline LLC that is indexed to market and will be delivered to a new connection with the Kinder Morgan system.

Swift Energy has also extended contracts for two horizontal rigs currently drilling for the Company by 12 and 15 months from their current terms due to expire in December 31, 2010. With these contracts in place, the Company will enter 2011 with three South Texas horizontal drilling rigs under long term contracts.

“These separate agreements for dedicated gathering and drilling services further reduce Swift Energy’s exposure to the continuing tightness of oilfield services and gathering outlets facing operators in South Texas,” said Terry Swift, Swift Energy’s chief executive officer. “We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints.”

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Thursday, September 16, 2010

Petrohawk Energy Corp. - Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Petrohawk Energy Corp. (HK) recently completed a new well in the Eagle Ford Shale, located in McMullen County, Texas:

Antares Energy is pleased to advise Petrohawk Energy Coroporation (HK) has completed the first well in the Term Assignment Area, the Donnell 457 No. 1H. The well had an initial, 24-hour production rate of 563 bo/d and 3,628 mcf/d equating to a rate of 1,168 boe/d. The well had a flowing tubing pressure of 4,580 psi on a restricted 16/64” choke.

The Donnell 457 No. 1H was completed over a measured depth interval between 12,062 ft and 15,871 ft with over 3,000,000 pounds of proppant and 2,700,000 gallons of fluid.

Additionally, Petrohawk has commenced drilling operations on the second Term Assignment well, the Dilworth No. 1H. The Dilworth No. 1H is a direct downdip offset to the Frances Dilworth No. 2H and is planned to be the longest Eagle Ford shale horizontal well to date with a lateral length of over 8,000 ft.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Wednesday, September 15, 2010

Deep Well Oil & Gas, Inc to Recover Loss from Sawn Lake Project

By Andrea: http://oilshalegas.com

Deep Well Oil & Gas, Inc.(DWOG) through its subsidiaries recently filed legal action to recover sums owed by a defaulting party under a Joint Operating Agreement covering past development of the Sawn Lake Project.

The action seeks to recover an indebtedness in the amount of $ 70,584.50 plus interest and the costs of the action from 1132559 Alberta Ltd. which is an Alberta Company whose
President is William Tighe. This lawsuit is in addition to an earlier action filed to recover $ 74,470.71 also plus interest and costs of the action regarding other expenditures on Alberta Ltd.’s behalf.

Deep Well continues to await clearance from the Energy Resources Conservation
Board for its first Test Well Project and is in the process of assembling the necessary
resources to proceed with the Project.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Additives for Hydraulic Fracturing - Questerre Energy Corp.

By Andrea: http://oilshalegas.com

Questerre Energy Corporation (QEC) is the first company in Qu├ębec to publicly disclose the additives that it uses in its hydraulic fracturing operations.

The information includes the typical concentration of the additive, the main compounds in the additives and the specific and common uses of the compounds. On average, Questerre has used nine of these highly diluted additives that amount to 0.12% of the total fluid used with the remaining 99.88% made up of water and sand. This is less than typical industry concentrations of 0.5%. The information is available on the Company's website at www.questerre.com.

"Questerre is committed to operating in an environmentally responsible and socially acceptable manner," said Michael Binnion, President and Chief Executive Officer of Questerre Energy. "Making the composition of our frac fluids available to the public is just one of the ways we are working to respect the social acceptability of shale gas development in Quebec."

Hydraulic fracturing operations in the Utica shale are conducted at a minimum depth of 1000 metres below the fresh water zones in Quebec. This fresh water is separated from the frac fluids by several layers of steel casing and high quality cement. The highly diluted additives are carefully managed and are commonly found in household products.
"Producing natural gas from Quebec's Utica Shale presents an extraordinary opportunity for Quebec. Billions of dollars in royalties, local employment of over 7500 jobs and the repatriation of the 2 billion dollars that Quebec currently sends to western Canada each year are just a few of the benefits," said Binnion. "Myths from US based political groups which are also used as a source of information by environmental groups in Quebec should not prevent Quebecers from benefiting from this opportunity."

In its ongoing commitment to transparency, Questerre also recently released a video that explains the process of horizontal drilling and hydraulic fracturing.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Richland County - Bakken Shale Update

By Andrea: http://oilshalegas.com

Continental Resources, Inc. (CLR) recently announced another significant well completion in the Bakken Shale, located Richland County, Montana, with the Winters 3-35H (36% WI). The Winters is a 320-acre spaced infill well (1,320 feet inter-well spacing) in the Elm Coulee Field and produced 827 Boepd in its one-day test. The Winters has a 9,000-foot lateral and was fracture stimulated in 24 stages.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Continental Resources Completes 13 New Bakken Shale Wells

By Andrea: http://oilshalegas.com

Continental Resources, Inc. (CLR) recently announced the completion of 13 Company-operated gross wells (7.4 net) in the North Dakota Bakken play since July 1, 2010, with an average one-day production test of 1,070 Boepd (barrels of oil equivalent per day). These wells, with their one-day test results, included:

  • Roadrunner 1-15H (56% WI) in Dunn Co. - 1,722 Boepd;
  • Medicine Hole 2-27H (43% WI) in Dunn Co. - 1,702 Boepd;
  • Rollefstad 2-3H (73% WI) in McKenzie Co. - 1,689 Boepd;
  • Bonney 2-3H (43% WI) in Dunn Co. - 1,435 Boepd;
  • Howard 1-5H (52% WI) in Divide Co. - 1,201 Boepd;
  • Ravin 1-1H (59% WI) in McKenzie Co. - 1,034 Boepd;
  • Bjella 1-24H (41% WI) in Williams Co. - 1,029 Boepd.
For more shale updates, visit: http://blackberrystocks.blogspot.com

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Continental Resources - Bakken Shale Update

By Andrea: http://oilshalegas.com

Continental Resources, Inc. (CLR) recently announced that its proved reserves increased 21 percent to 310 MMBoe in the first half of 2010, based on its internal evaluation. This compared with the total proved reserves of 257 MMBoe at year-end 2009. The increase in the first half of 2010 primarily resulted from extensive drilling activity in the North Dakota Bakken Shale play.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Monday, September 13, 2010

McMullen County, Texas - Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Petrohawk Energy Corp. (HK) recently completed a well in the Eagle Ford shale located in McMullen County Texas:

Antares Energy is pleased to advise Petrohawk Energy Coroporation has completed the first well in the Term Assignment Area , the Donnell 457 No. 1H. The well had an initial, 24-hour production rate of 563 bo/d and 3,628 mcf/d equating to a rate of 1,168 boe/d. The well had a flowing tubing pressure of 4,580 psi on a restricted 16/64” choke.

The Donnell 457 No. 1H was completed over a measured depth interval between 12,062 ft and 15,871 ft with over 3,000,000 pounds of proppant and 2,700,000 gallons of fluid.

Additionally, Petrohawk has commenced drilling operations on the second Term Assignment well, the Dilworth No. 1H. The Dilworth No. 1H is a direct downdip offset to the Frances Dilworth No. 2H and is planned to be the longest Eagle Ford shale horizontal well to date with a lateral length of over 8,000 ft.

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Imperial Petroleum Inc. - Devonian Shale Update

By Andrea: http://oilshalegas.com

Imperial Petroleum, Inc. (OTCBB) acquired approximately 5,000 acres in the Devonian shale located in eastern Kentucky. The acquired land holds 25 wells producing roughly 400 mcfpd. Imperial purchased that land at $4.95 million:

Imperial Petroleum, Inc. (OTCBB) announced that it has signed a purchase and sales agreement to purchase the Heartland Properties in eastern Kentucky. Imperial will be the Stalking Horse Bidder in the sale to be conducted by the Receiver for the Heartland Entities and Partnerships under court order. The project covers some 5,000 acres in the Devonian shale gas play with production from 25 wells of approximately 400 mcfpd and several miles of gathering system. The remainder of the wells are cased and perforated but have not been fracture stimulated. Under the terms of the acquisition agreement, if consummated, Imperial will pay approximately $4.95 million for the assets including $0.45 million in cash with the balance in other consideration. The sale is subject to approval by each of the United States Bankruptcy Court and by the United States District Court for the Western District of Kentucky and subject to the sales procedures posted in connection with the planned sale.

The President of Imperial, Jeffrey T. Wilson said, “We took over operations of the Heartland assets a few months ago on behalf of the court-appointed Receiver, posted plugging bonds, began clearing up well violations with the State of Kentucky and have negotiated a new compressor site lease to prepare to re-start production. The effective date of the purchase is September 1, 2010 and we expect to have gas flowing again from the producing wells by the end of September. We anticipate the sale procedure to conclude and the sale to be finalized before December 31, 2010.”

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Friday, September 10, 2010

LINN Energy Corp. - Permian Basin Update

By Andrea: http://oilshalegas.com

LINN Energy, LLC (LINE) announced recently that it signed three definitive purchase agreements to acquire oil and natural gas properties located in the Wolfberry trend of the Permian Basin for a combined price of $352.2 million, subject to closing conditions. The Company anticipates the acquisitions will close before the end of November 2010, and will be financed with proceeds from borrowings under its revolving credit facility.

"These acquisitions are an excellent addition to our existing Permian assets in the Wolfberry trend and a significant addition to our inventory of high-return oil projects," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. "Pro forma for these transactions, LINN's Permian Basin production is approximately 10,000 barrels of oil equivalent per day. Proved reserves are more than 74 million barrels of oil equivalent, with a high liquids content of approximately 76 percent, and are 41 percent proved developed. Since our first Permian acquisition in August 2009, we have built this region into the Company's second largest operating area. An important component of our organic growth will be derived from approximately 400 proved oil-focused Wolfberry drilling opportunities, which we expect will provide LINN with a five-year drilling inventory. Additionally, we expect these acquisitions to be immediately accretive to cash flow per unit upon closing."

Significant characteristics of the three acquisitions are:

-- Net production of approximately 3,300 barrels of oil equivalent per day
(73 percent oil);
-- Proved reserves of approximately 30 million barrels of oil equivalent
(72 percent oil);
-- More than 230 Wolfberry drilling locations representing proved
undeveloped reserves of 23 million barrels of oil equivalent; and
-- Reserve life of approximately 25 years.

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Linn Energy Corp, LLC (LINE) Granite Wash Well

By Andrea: http://oilshalegas.com

LINN Energy, LLC (LINE) recnetly announced results from its third and fourth operated horizontal Granite Wash wells in the Greater Stiles Ranch area of the Texas Panhandle.

The Stein 1-3H well tested at a 24-hour production rate of 37.2 MMcfe/d, including estimated NGL recoveries and shrinkage associated with processing the natural gas. The production is comprised of 19.0 MMcf/d of natural gas and 1,487 Bbls/d of condensate at 1,510 psi flowing surface pressure. The natural gas production has a heating value of 1,287 Btu/cf, and when processed, should yield approximately 2,340 Bbls/d of natural gas liquids. The Company owns an approximate 60 percent working interest in the Stein 1-3H well.

The Thomas 5-8H well tested at a 24-hour production rate of 26.2 MMcfe/d, including estimated NGL recoveries and shrinkage associated with processing the natural gas. The production is comprised of 16.3 MMcf/d of natural gas and 640 Bbls/d of condensate at 1,350 psi flowing surface pressure. The natural gas production has a heating value of 1,234 Btu/cf, and when processed, should yield approximately 1,600 Bbls/d of natural gas liquids. The Company owns an approximate 60 percent working interest in the Thomas 5-8H well.

"We are extremely pleased with the results from our operated Granite Wash program, which has continued to exceed our expectations. The Black 50-1H well has been on production for 56 days and is currently producing at a rate of more than 40 MMcfe/d. The McMahan 22-2H well has been on production for 110 days and is currently producing at an approximate rate of 8 MMcfe/d. The average liquids component of the production stream on our four operated wells is more than 60 percent, of which a significant portion is condensate. As a result, all of these wells will generate rates of return that should exceed 100 percent," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy.

"Our capital program calls for 22 Granite Wash wells this year and significantly more next year as we increase our operated rig count to four in 2011. LINN is currently drilling two operated wells. The Granite Wash drilling program is a significant component of our organic growth strategy, which we believe will provide meaningful growth in our cash flow over the course of the next several years."

For more shale updates, visit: http://blackberrystockblog.blogspot.com

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Marshall County, West Virginia: Marcellus Shale Update

By Andrea: http://oilshalegas.com

Trans Energy, Inc. (TENG) announced today that it has begun drilling the Stout #2H well in Marshall County, West Virginia. The Stout #2H will be drilled and completed horizontally in the Marcellus shale.

John G. Corp, President of Trans Energy, said, “We plan to drill four additional horizontal Marcellus wells in Marshall County in 2010 beginning with the Stout #2H. Moving to a development phase from an exploration phase is another significant step forward for Trans Energy to properly develop its acreage position in northern West Virginia.”

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Buccaneer Energy Limited: Austin Chalk and Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Buccaneer Energy Limited (BCGYF.PK) to announced today that the Alexander # 1 is currently at 5,727 feet.

At approximately 12.15pm on Thursday 9 September 2010 the well started to flow oil and gas. The Company’s assessment is that the current production is from the mid to lower Austin Chalk. The gas is being flared and the oil is being produced into tanks on site.

The intention is to flow the well for a number of days until it stabilises, then consideration is being given to drilling ahead whilst producing the well. The well will now be drilled to a Total Depth of 6,250’ which will ensure that the Eagle
Ford Shale section is fully drilled.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Philadelphia, PA: Marcellus shale Pipeline update

By Andrea: http://oilshalegas.com

As Marcellus Shale gas grows in popularity throughout Pennsylvania, operators are worried about transportation of the natural asset. However, a solution is underway thanks to Sunoco Logistics Partners. Sunoco recently struck a deal with Markwest Energy Partners (MWE) to transport ethane produced in the Marcellus shale to a Delaware River facility for shipment by sea to the Gulf coast. The terminal will be refrigerated to store supercooled ethane at one of Sunoco's existing facilities.

The plan is for Markwest to construct a 45-mile pipeline from Houston, PA and connect it with Sunoco's existing 8-inch diameter pipeline in Delmont, PA. That liquid-fuels pipeline crosses Pennsylvania to connect to Sunoco production facilities in the Philadelphia area.

Deborah M. Fretz, chief executive officer of Sunoco Logistics, said the company's underused pipeline "is well-positioned to provide an efficient solution for producers to move ethane across Pennsylvania to a Delaware River marine port to access multiple markets."

The project will have the capacity to transport up to 50,000 barrels per day of ethane - 2.1 million gallons - when it starts up in 2012.

There is no information yet on the cost or the project or on earnings projections.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Brigham Exploration Co. - Bakken Shale Update

By Andrea: http://oilshalegas.com

Brigham Exploration Co. (BEXP) released an update on the Bakken shale yesterday located in North Dakota, on their Rough Rider and Ross projects:

Brigham's accelerated development of its core operated acreage in its Rough Rider and Ross project areas is proceeding with four operated rigs running in Rough Rider and one operated rig running in Ross. Brigham's sixth operated rig is expected to arrive mid-October and will drill locations in the Ross project area. Rigs seven and eight are expected to arrive in January and May 2011, respectively.

Brigham currently has one well fracing and 11 wells waiting on completion. Given additional access to a shared frac crew, Brigham's pace of completions is expected to accelerate this month. It is estimated that Brigham will fracture stimulate and bring on line to production approximately six wells per month beginning this month. In the first quarter 2011, additional fracture stimulation capacity is expected to be added. At that time, Brigham estimates that approximately eight wells per month will be fracture stimulated and brought on line to production.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Williams County, North Dakota: Bakken Shale Update

By Andrea: http://oilshalegas.com

Brigham Exploration Co. (BEXP) announced yesterday that they completed 3 wells in the Bakken Shale area, located in Williams County, ND. The wells averaged a 24-hour peak flow back rate of 2,150 barrels of oil equivalent.

The Weisz 11-14 #1H, Abe Owan 21-16 #1H and the Sukut 28-33 #1H produced at early 24-hour peak flow back rates of 2,278 (2,003 barrels of oil and 1.65 MMcf), 2,213 (1,983 barrels of oil and 1.38 MMcf) and 1,959 (1,752 barrels of oil and 1.24 MMcf) barrels oil equivalent, respectively. The Weisz, Abe Owan and Sukut were completed with 37, 37 and 32 fracture stimulation stages, respectively. Brigham's working interests in the Weisz, Abe Owan and Sukut are approximately 52%, 57% and 42%, respectively. The Sukut was completed with U.S. Energy Corp. (NASDAQ: USEG) and Brigham will back in for a portion of USEG's working interest in the Sukut after payout of the well. Brigham has completed 24 long lateral high frac stage wells in Rough Rider with an average early 24-hour peak rate of approximately 2,413 barrels of oil equivalent.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Montrail County, ND: Bakken Shale Update

By Andrea: http://oilshalegas.com

Brigham Exploration Co. (BEXP) released an update concerning new wells in the Bakken Shale area, located in Montrail County, North Dakota. They completed the Wright 4-33 #1H in the Ross project. The well was completed with 38 fracture stimulation stages, at an early 24-hour peak flow back rate of 3,660 barrels of oil equivalent. The Wright is located in the northwestern portion of the Ross project area and is approximately four miles to the west of the Ross Alger 6-7 #1H, which was completed with 32 fracture stimulation stages and had an early 24-hour peak flow back rate of 3,070 barrels of oil equivalent. Brigham maintains an approximate 88% working interest in the Wright. Brigham has completed eight long lateral high frac stage wells in Ross at an average early 24-hour peak flow back rate of approximately 3,333 barrels of oil equivalent

BEXP is up $0.38 today so far as a result of the good news.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Wednesday, September 8, 2010

McMullen County, Texas: Eagle Ford Shale update

By Andrea: http://oilshalegas.com

Doxa Energy Ltd. (DXA.V) recently announced that they have successfully completed multi-stage fracture stimulation on the Epley #1H in Mcmullen County, Texas in the Eagle Ford shale. Flow back of the well has commenced. Doxa management has not yet reported results, but will do so when all operations are complete. Pipeline and facility construction is under way as a result of the establishment of commercial production from the Epley project. The Epley #1H is the first horizontal well in which Doxa has participated within the prolific Eagle Ford Shale trend of South Texas. Doxa owns a 15% working interest with a respective 11.25% net revenue interest under this project, which is operated by San Isidro Development Company. Subject to commercially viable results on this initial well, Doxa expects that up to 5 gross wells may ultimately be drilled on the Epley project.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Friday, September 3, 2010

Westmoreland County, PA : Marcellus Shale update

By Andrea: http://oilshalegas.com

Westmont Resources Inc. (WMNS.ob) recently announced that they have completed an agreement that will extend Westmont's reach and resources with the acquisition of 1,800 acres and 60 existing wells in the Marcellus Shale region in the southwest tier of Pennsylvania. These 1,800 lease acres are located in Westmoreland County of Western Pennsylvania. The company estimates that the value of the leases could be roughly $36 million. Westmont feels that an additional 30 wells could be drilled on the leased acreage which would increase the potential reserves for the project by an estimated $18 million.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Westmont Resources Inc. - Marcellus Shale Update

By Andrea: http://oilshalegas.com

Westmont Resources Inc. (WMNS.ob) recently announced that they have completed an agreement that will extend Westmont's reach and resources with the acquisition of 1,800 acres and 60 existing wells in the Marcellus Shale region in the southwest tier of Pennsylvania.

Preliminary estimates indicate that the value of the reserves associated with these 1,800 lease acres in Westmoreland County of Western Pennsylvania from the existing 60 wells located on the leases could amount to nearly $36 million. Westmont believes that with additional exploration an additional 30 wells could be drilled on the leased acreage increasing the potential reserves for the entire project by an estimated $18 million, or a combined estimated value for the new Pennsylvania leases of $54 million USD. This is based on the company's review of other assessments and production in the immediate area.

Westmont Resources has been working to obtain oil and gas leases in the Marcellus and Chattanooga Shale Region. Representing roughly 61,000 square miles, stretches from Upper New York, through western Pennsylvania and into eastern Ohio and most of Kentucky and West Virginia and parts of Virginia and Eastern Tennessee. It is believed one of the richest natural gas fields in the World. In early 2008, geoscientists at Penn State Univ, and SUNY Fredonia estimated that the Marcellus & Chattanooga contains more than 500 trillion cubic feet of natural gas. These reserves represent more than 2 times the current reserves located in Saudi Arabia. The shale contains largely untapped natural gas reserves, and its proximity to the high-demand markets along the East Coast makes it an attractive target for energy development.

Westmont's portfolio, in addition to this most recent acquisition in the Pennsylvania Marcellus Shale region, includes development of two significant blocks in the Chattanooga Shale region in northern Tennessee consisting of 92 wells, and an additional 1,650 lease acres in West Virginia. "Our specialty is applying cutting-edge technology in order to 'wring additional value from' long-lived, low risk natural gas and oil properties - To squeeze more oil out of mature basins. These new Pennsylvania assets are an excellent fit with our existing core areas and will expand our portfolio," said Glenn McQuiston, Westmont's President.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Anadarko Petroleum (APC): Niobrara Shale update

By Andrea: http://oilshalegas.com

Anadarko Petroleum (APC) recently announced their plans for new wells in the Niobrara shale for 3Q 2010. The company described the Niobrara shale as "another emerging area". The oil-focused play is located in Northeastern Colorado and Southeaster Wyoming. Anadarko plans to drill 6 to 10 operated wells beginning in the third quarter of 2010, now that they have gleaned important information in their greater than 500,000 gross acreage position from prior farm-outs. Much of the acreage is in the land grant where they hold the mineral rights and perpetuity. Anadarko has been shooting seismic and acquiring leases that have given them a commanding acreage position that is incremental to their 550,000 acre position in the Wattenberg gield, where they have been producing in the Niobrara formation for many years.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Noble Energy, Inc - Niobrara Shale Update

By Andrea: http://oilshalegas.com

Noble Energy, Inc. (NBL) is beginning to make a huge impact in the Niobrara Shale and they will continue their growth in 3Q 2010:

To date, Noble Energy Inc. (NBL) has drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg. Eight of the Wattenberg wells are now on production with two awaiting completion operations. As they continue to step out to the north and the eastern portions of the Wattenberg field, Noble Energy is encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.

Starting in September, the company expects to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day.

In the Grover area, the first two horizontal wells were recently drilled and are undergoing completion operations. Noble Energy will keep one of the two current horizontal rigs in Wattenberg the rest of the year and the other rig will move between Wattenberg and the Grover area.

In southern Wyoming, the company is also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, their horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end. Along with the ongoing 3D seismic activity, production monitoring and additional reservoir evaluation work, Noble Energy should be in a good position by the end of the year to assess the expansion plans for this area. Overall, the company is currently operating 13 rigs in their onshore US program. Five of those rigs are conducting horizontal operations and eight are drilling vertical wells.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Thursday, September 2, 2010

Continental Resources: Largest Position in Bakken shale


Continental Resources Inc. (CLR) recently announced in their 2Q 2010 earnings call that they currently hold the largest position in the Bakken shale, and will continue to increase their acreage:

"Continental has built a commanding land position in the Bakken, taking advantage of the competitive strengths that we’ve accumulated in play over the past decade. During the past 10 years, we’ve assembled the best historical database of leasehold in North Dakota in Montana. This allowed us to move very quickly to seize the opportunity as the play expanded. We’ve assembled the largest land position in the Bakken and we’re expanding that position, and we operate the most rigs in the play today."

Continental Resources grew their land position this year by 171,505 net acres that equates to total of 270 net wells on 640 acres space and for one zone. That’s a total of more than 100 basin barrels in reserved potential and if you count the Three Forks, it’s even larger. It could be double. They've acquired prime acreage in the Bakken shale along Anadarko and West Woodford in McKenzie and Williams County as the play has expanded in that direction.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Laramie County, WY: Niobrara Shale Update

By Andrea: http://oilshalegas.com

Continental Resources Inc. (CLR) has to date, leased roughly 60,000 net acres in the Niobrara shale in both Colorado and Wyoming and they are still actively leasing. Continental Resources recently announced that they will spot their first well in the Niobrara shale play in the 4th quarter of 2010. Jeff Hume, president and COO expressed his excitement and positive outlook in the Niobrara shale play:

"The Niobrara is a huge crude oil resource play. It covers over 3 million acres and has a potential to produce more than 2 billion barrels of oil. We’ve established a strategic position in the play, leasing almost 60,000 net acres and continue to acquire result. We hold acreage in Platt, Laramie, and Goshen Counties in Wyoming and a well count in Colorado...Niobrara development is currently on 640 spacing and we believe the play can accommodate 1280s. We plan to spot our first Niobrara well in the fourth quarter. Continental’s entry into the Niobrara is a natural strategic fit with our expertise and experience in horizontal oil resource plays."

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Wednesday, September 1, 2010

EOG Resources: Eagle Ford Shale Pipeline

By Andrea: http://oilshalegas.com

Enterprise Products Partners (EPD) announced that it will work with EOG Resources to provide midstream services for the transportation of crude oil and natural gas in the Eagle Ford shale region:

Enterprise Products Partners L.P. (NYSE:EPD) today announced that its operating subsidiaries have entered into long-term agreements with EOG Resources, Inc. (NYSE: EOG) to provide a comprehensive package of midstream energy services that will service EOG's growing crude oil and associated liquids-rich natural gas production in the prolific Eagle Ford Shale in South Texas. As part of the arrangements, Enterprise will utilize its existing assets and build additional infrastructure to provide EOG with a full range of value-added midstream services for its Eagle Ford production, including crude oil transportation, storage and exchange; natural gas transportation, treating and processing; and natural gas liquids (NGL) transportation and fractionation.


"We are very pleased to contract with EOG, a leader in the development of the Eagle Ford Shale in South Texas," said Michael A. Creel, President and Chief Executive Officer. "EOG's need for crude oil, natural gas and NGL midstream services clearly illustrates the advantage of an integrated midstream network with access to attractive markets to maximize the value of its Eagle Ford Shale production."

"The South Texas Eagle Ford has the potential to be one of the largest crude oil discoveries in the United States including the Deep Water Gulf of Mexico, in the last 40 years and we believe we have captured 900 million barrels of oil equivalent, net on our 505,000 net acreage position in the play. Contracting with Enterprise, which brings a comprehensive program of midstream services, is a strategic move for EOG in marketing our production," said Mark G. Papa, EOG's Chairman and Chief Executive Officer.

As part of its long-term agreements, Enterprise will construct a 140-mile pipeline originating in northwestern Karnes County to transport EOG's crude oil production from the Eagle Ford Shale. The pipeline will extend to its existing crude oil system in Austin County where it will connect to the partnership's Sealy Station. The pipeline, which is anchored by a 10-year, firm transportation agreement with EOG, offers the flexibility to access the Houston refinery market or the Enterprise-operated Seaway Pipeline system that provides a direct link to Cushing, Oklahoma, a major domestic crude oil storage and trading hub. With a capacity of approximately 350,000 barrels per day (BPD), the crude oil pipeline will be large enough not only to meet EOG's requirements, but to accommodate other Eagle Ford producers, many of which are currently in discussions with Enterprise.

Enterprise plans to build central delivery points for receiving crude oil from trucks and gathering pipelines at multiple locations along the crude oil pipeline route. Completion of the crude oil pipeline project is expected in the first quarter of 2012. In the interim, Enterprise is providing crude oil transportation services via trucks until the pipeline is in service.

Enterprise will also provide firm natural gas transportation and processing, as well as NGL transportation and fractionation services to EOG, anchored by seven-year contracts. In support of this initiative, Enterprise has committed to the construction of 52 miles of additional pipeline laterals to complement its previously announced Eagle Ford rich natural gas mainline project. In addition to rich and lean natural gas transportation capabilities, Enterprise will provide EOG with natural gas processing services at the partnership's planned cryogenic gas processing facility. With an initial capacity of 600 million cubic feet per day, the new processing plant is projected to be in service in mid 2012. The NGLs recovered from EOG's natural gas volumes at the new plant will be transported through Enterprise's recently announced 127-mile, 12-inch diameter NGL pipeline to its Mont Belvieu complex where Enterprise will construct a fifth NGL fractionator. Prior to the completion of these new gas processing and NGL facilities, Enterprise will utilize existing capacity in its integrated network of South Texas infrastructure to process EOG's natural gas and to transport and fractionate the NGLs recovered from EOG's natural gas production.

Activity in the Eagle Ford Shale continues to exceed industry expectations as more than 90 rigs working in the play have drilled more than 175 wells to date. Current production from the play is estimated at approximately 300 million cubic feet per day of natural gas and 40,000 BPD of crude oil and condensate.

"Our broad footprint of assets in the Eagle Ford Shale provides us with the foundation to develop infrastructure with the size and scope to meet the needs of producers, and gives Enterprise a competitive advantage in pursuing other opportunities in this growing area," Mr. Creel said.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Caddo Parish, LA : Haynesville Shale Update

By Andrea: http://oilshalegas.com

Cubic Energy Inc. (QBC) announced today that they spud their 4th horizontal well today in the Haynesville shale:

Cubic Energy Inc. (QBC) announced that the Red Oak Timber 7-1 ALT spud on August 6, 2010 with surface casing set at 1,903 feet. This well is located in Section 7, Township 14 North Range 15 West in Caddo Parish, Louisiana located in Cubic s Bethany Longstreet acreage. Cubic has an estimated 29% working interest in this well.

Calvin Wallen III, Cubic’s CEO and President, stated, "This is Cubic’s fourth Horizontal Haynesville Shale well to be drilled under our existing drilling credit and the sixteenth Horizontal Haynesville Shale well in which Cubic has a working interest."

Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. The Company’s oil and gas assets and activity are concentrated primarily in Louisiana and Texas.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Lamar County, Mississippi - Haynesville Shale Update

By Andrea: http://oilshalegas.com

Morgan Creek Energy Corp. (MCKE.OB) announced today that they acquired roughly 21,000net acres of mineral oil and gas leases in the Haynesville shale. The land is located in Lamar, Jones and Forrest County, Mississippi. The agreement resides with Westrock Land Corp. which is a privately owned company. Westrock will own all rights to the land and hold a minimum 75% net revenue interest.

The Company has entered into this agreement with the mineral leaseholder, Westrock Land Corp., and is based on representations that Westrock owns all rights to all depths including the Haynesville Shale Formation, pursuant to the oil and gas leases with a minimum 75% net revenue interest.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Lee County, Texas - Austin Chalk Formation Update

By Andrea: http://oilshalegas.com

Buccaneer Energy Limited (BCGYF.PK) recently announced the progress of 2 wells in Lee County, Texas in both the Austin Chalk and Eagle Ford shale.

The Alexander # 1 well site location has been built over the last week and the Nicklos # 1 Rig is moving in and rigging up to drill.
The Alexander # 1 well is the third well in the Lee County drilling program and is expected to spud within the next 24 hours.The vertical component of the well is anticipated to have a total depth of 5,800' and will penetrate the Austin Chalk and Eagle Ford shale. Logs will then be run before a 1,500' - 2,500' horizontal component is drilled in the Austin Chalk formation.

The vertical component is expected to take 7-10 days to drill and the horizontal component an additional 15-18 days.

Drilling updates will be made each Wednesday.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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