Shale News

Preston County, WV Marcellus Shale

2011-11-10T11:00:00.000-05:00

November 10, 2011 - Gastar Exploration Ltd (GST) recently reported on their Preston County, WV acreage in the Marcellus Shale.

On our Marcellus East position in Preston County, West Virginia, we have drilled one horizontal well to test this acreage, which is 100% owned by Gastar. In August 2011, we completed the Hickory Ridge 2H horizontal Marcellus well, a 2,500-foot lateral completed with a 10-stage fracture stimulation, and we are currently flowing back completion fluids. First sales from the Hickory Ridge 2H are anticipated by year end. Our focus for the remainder of 2011 and through 2012 in the Marcellus East acquisition area is to perform a 3-D seismic survey over a portion of the acreage, with no additional wells currently planned during that time frame.

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PDC Energy (PETD) - Utica Shale Ohio News

2011-11-10T07:30:00.000-05:00

By Tim - http://oilshalegas.com

November 10, 2011 - Petroleum Development Corporation (dba PDC Energy) (Nasdaq:PETD) recently announced that they are involved in the Utica Shale. The Utica Shale is really heating up in the oil window of the field which is located in Ohio.

PDC has acquired the rights for up to 40,000 net acres in the Utica shale play in southeastern Ohio for approximately $70 million. The Company plans to fund $14 million in 2011 and expects the remaining $56 million to be funded in 2012.

James Trimble, President and Chief Executive Officer, stated, "Our third quarter results were strong, and from a business development perspective we were particularly pleased. We acquired the rights of up to 40,000 net acres in the Utica Shale play in southeastern Ohio, we announced PDCM's acquisition of 90,000 acres prospective for the Marcellus Shale in West Virginia, and we announced the planned divestitures of our NECO, Permian basin and certain non-core assets. We engaged in a process to secure a joint venture partner in the Utica Shale play. Proceeds generated from the anticipated asset divestitures and the successful conscription of a joint venture partner will be utilized to strengthen our balance sheet, improve our liquidity position, and fund a portion of our 2012 developmental capital program. We expect our divestitures to occur in the fourth quarter of 2011 and the first quarter 2012."

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Vaca Muerta Shale - Argentina Oil Shale Discovery

2011-11-09T22:34:00.001-05:00

By Tim - http://oilshalegas.com

November 9, 2011 - There was a huge oil discovery this week in Argentina in the Vaca Muerta Shale. The Vaca Muerta Shale is said to have some of the same characteristics as the Eagle Ford Shale in Texas. EOG Resources (EOG) recently provided an update on this formation play.

"Before I close out the oil play discussion, I'll mentioned timing regarding our Argentina Vaca Muerta shale play, where we have approximately 100,000 net acres. We'll start our first well in the first quarter 2012, though we should have some results by late 2012." "We've got a well planned in the first part of next year. And the section we're targeting there, we've got data that shows that it's relatively thick, about 900 feet thick, and it's got about 150 million barrels per section of oil in place. So it's certainly a world-class potential rock.

Earlier this week, Repsol YPF SA said they plan to produce 50,000 barrels of oil from the Vaca Muerta Shale starting in 2014-2015. YPF announced Monday the potential of 927 million barrels of unconventional oil in Argentina's Neuquen Province, where the Vaca Muerta shale is located.

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McKenzie County, ND - Bakken Shale

2011-11-09T17:12:00.000-05:00

By Tim - http://oilshalegas.com

November 9, 2011 - Kodiak Oil & Gas (KOG) recently gave an update on their McKenzie County North Dakota Bakken Shale and Three Forks Play. Kodiak Oil & Gas (KOG) is one of the up and coming exploration companies in the Bakken Shale due to their aggressive mineral rights leasing binge.

Kodiak’s five operated drilling rigs are presently drilling ahead on multi-well drilling pads. Three rigs are drilling in McKenzie County, and two rigs are drilling in Dunn County.

For the remainder of the fourth quarter 2011, Kodiak expects to complete or commence completion operations on an additional nine gross (6.1 net) operated wells, including two gross (0.8 net) wells from the recent acquisition. These operated wells are located on four drilling pads consisting of three, two-well pads and one, three-well pad. Drilling has been completed and operations are underway to construct surface equipment and pipelines on each of the pads. Currently, two gross (0.8 net) wells have been completed and are in flow-back operations. The remaining seven gross (6.6 net) wells are expected to commence completion operations during the remainder of the fourth quarter.

“We continue to make excellent wells in both Dunn and McKenzie Counties, which are integral to our production and cash flow growth trajectory we intend to provide our shareholders. One particularly positive development is the continued strong production profile from our first Three Forks well located in the McKenzie County Koala Project area. As shown above through the first 90 days of production, the well averaged nearly 1,000 BOE/d and is mirroring the offsetting Bakken well drilled just 700 feet away. With additional Three Forks production data, we can provide more accurate estimated ultimate recoveries for the Three Forks in the Koala area. We will also closely monitor the production profile from our two recent Dunn County Three Forks completions which have generated encouraging results.

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Range Resources (RRC) - Utica Shale

2011-11-09T14:01:00.000-05:00

By Tim - http://oilshalegas.com

November 9, 2011 - Range Resources (RRC) recently gave some comments about It's Utica Shale . The Utica Shale has been one of the top shale plays in North America lately as Oil & Gas companies scramble to acquire mineral rights in Ohio and Pennsylvania.

"In the Utica Shale, we'll spud our next well in the second quarter of 2012. Industry has drilled and will be drilling several Utica wells. Results of some of these wells will help us to delineate Range's acreage. A lot of our acreage is perspective for both the Upper Devonian and Utica shale. We hold all depth rights on our fairway acreage, so as we focus on driving up reserves and production in the low-risk highly economic Marcellus play, we'll hold the Upper Devonian and Utica potential both above and below the Marcellus. As we better understand the other 2 horizons with time, we'll then determine the optimum plan for each horizon."

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Kodiak Oil & Gas Corp (KOG) - Bakken Shale

2011-11-09T10:30:00.000-05:00

By Tim - http://oilshalegas.com

November 9, 2011 - Kodiak Oil & Gas (KOG) recently announced an update on the Bakken Shale. Kodiak Oil & Gas (KOG) drilling for oil in McKenzie County, ND & Dunn County North Dakota. I have a 2012 price target on KOG stock located at $9-$11 per share.

Kodiak Oil & Gas (KOG) took delivery of its fifth operated rig in early October. Kodiak's five operated drilling rigs are presently drilling ahead on multi-well drilling pads, with three rigs in McKenzie County, N.D. and two in Dunn County, N.D.

During September and continuing into early October, Kodiak completed five gross (four net) operated wells, bringing total third quarter completions on operated wells to seven gross (five net) wells. Initial production results from the wells completed in September and October are included in the table below. The results from wells completed earlier in the third quarter have previously been released.

For the remainder of the fourth quarter 2011, Kodiak expects to complete or commence completion operations on an additional seven gross (six net) operated wells in the Williston Basin. These operated wells are located on three drilling pads consisting of two, two-well pads and one, three-well pad. Drilling has been completed and operations are underway to construct surface equipment, with completion operations scheduled within the next thirty days.

In addition to its operated wells, the Company has participated in completion of five gross (2.5 net) non-operated wells under its area of mutual interest (AMI) with its partner in Dunn County, N.D. Initial production results from the completed wells are included below. Drilling activity continues with three gross (1.5 net) wells drilled and waiting on completion and two gross (1.0 net) wells drilling. Non-operated drilling and completion activities within the AMI are expected to continue throughout the fourth quarter and into 2012.

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Marshall County, West Virginia - Marcellus Shale

2011-11-09T09:00:00.000-05:00

By Tim - http://oilshalegas.com

November 9, 2011 - Gastar Exploration Ltd (GST) recently reported on their Marshall County, WV acreage in the Marcellus Shale.

In Marshall County, West Virginia, we currently have two drilling rigs working in our Marcellus West area. By year-end 2011, we expect to have nine horizontal Marcellus wells on sales and 10 horizontal Marcellus wells drilled and awaiting completion. All of our Marcellus Shale wells drilled in Marshall County are part of our joint venture with Atinum Partners Co, Ltd. (the "Atinum Joint Venture"). After all drilling and completion costs have been incurred, our working interest in these wells will range from 40% to 50%.

In mid-August 2011, we began producing the Wengerd 1H and 7H horizontal wells at an initial combined 30-day average gross sales rate of approximately 7.1 MMcf per day of natural gas, 176 barrels of condensate and 347 barrels of natural gas liquids (“NGLs”). On September 23, 2011, the pipeline operator shut in the pipeline due to weather-related damage to the natural gas and condensate gathering system. While the pipeline was being repaired, we installed tubing into the two Wengerd wells that would enable us to improve NGLs and condensate recovery and returned them to production on October 21, 2011. Initially, production was restricted due to excessively high line pressures following the pipeline repair, but this matter was recently resolved. The two wells’ most recent combined four day average gross sales rate is 8.1 MMcf per day of natural gas, 200 barrels of condensate per day and 490 barrels of NGLs per day.

Also in Marshall County, we have completed fracture stimulation operations on the Corley pad (four horizontal wells), with first sales anticipated in mid-November 2011. Currently, we are commencing fracture stimulation operations on the three-well Simms pad with first production anticipated mid-December 2011. As of September 30, 2011, drilling operations have been completed on the Hendrickson 1H, 2H and 4H wells, and we completed drilling operations on the Hendrickson 3H and 5H wells in late October 2011. Fracture stimulation operations on all five Hendrickson wells are anticipated to commence in March 2012, and first sales are anticipated in the second quarter of 2012. Currently, we have commenced drilling operations from the Hall pad (three wells) and the Burch Ridge pad (five wells), and we expect to commence drilling operations on the Accettolo pad (three wells) prior to year end.

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Dunn County, North Dakota Bakken Shale

2011-11-08T17:10:00.001-05:00

By Tim - http://oilshalegas.com

November 8, 2011 - Kodiak Oil & Gas (KOG) recently gave an update on their Dunn County, North Dakota Bakken Shale and Three Forks Play. Kodiak Oil & Gas (KOG) is one of the up and coming exploration companies in the Bakken Shale due to their aggressive mineral rights leasing binge.

Kodiak’s five operated drilling rigs are presently drilling ahead on multi-well drilling pads. Three rigs are drilling in McKenzie County, and two rigs are drilling in Dunn County.

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Rex Energy (REXX) - Utica Shale

2011-11-08T11:15:00.000-05:00

By Tim - http://oilshalegas.com

November 8, 2011 - Rex Energy (REXX) recently gave some comments about It's Utica Shale Oil Field located in Ohio, specifically, Carroll County. It appears the Carroll County area in Ohio is the "sweet spot" of the Utica Oil Shale window.

"On Slide 14, we have our Utica Shale overview. To date, we have a total of approximately 85,300 gross, 58,700 net acres perspective in this area for the Utica Shale. Chesapeake Energy has recently disclosed well results for 4 wells in their Utica Shale program, 3 of which are in close proximity to our Carroll County, Ohio acreage position. Locations and production rates for these wells are shown on the graph. As more production rates are disclosed, we feel confident that our Butler County acreage will be in the dry gas window and that all of our acreage in Carroll County, Ohio will be at ground 0 for the liquids rich condensate window."

http://www.rexenergy.com/

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Butler County, PA - Utica Shale - Rex Energy (REXX)

2011-11-08T10:46:00.000-05:00

By Tim - http://oilshalegas.com

November 8, 2011 - Rex Energy (REXX) recently gave an update on their Butler County, PA Utica Shale acreage. The Utica Shale is an oil field in Ohio and a Natural Gas Field in Pennsylvania.

In Butler County, we have also completed our first horizontal Utica Shale test well, the Cheeseman #1H. The well flowed at a 24-hour test rate of 9.2 million cubic feet of dry gas per day. The well is currently shut in and is expected to be placed in service in January of 2012

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Chesapeake Energy (CHK) -Tuscaloosa Marine Shale

2011-11-08T09:18:00.000-05:00

By Tim - http://oilshalegas.com

November 8, 2011 - Chesapeake Energy (CHK) said in their last conference call that they will not be chasing land acreage in the Tuscaloosa Marine Shale. Chesapeake Energy (CHK) said that based on what they are seeing, mineral rights are to expensive in the Tuscaloosa Marine Shale. They also stated that they will not be chasing anything in California such as the Elm County Field or the Monterey Shale.

The Tuscaloosa Marine Shale has been hitting the news lately on some nice oil wells being drilled. The Tuscaloosa Marine Shale is located in south Louisiana and Mississippi.

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Bakken Shale Record Oil Well - McKenzie County, ND

2011-11-07T15:01:00.000-05:00

By Tim - http://oilshalegas.com

November 7, 2011 - Whiting Petroleum (WLL) recently announced a new Bakken Shale record on a recent well that they've drilled. This Bakken Shale gusher was drilled in McKenzie County, North Dakota.

New Discovery at Tarpon Prospect Flows at Williston Basin Bakken Record Initial Rate of 7,009 BOE/D (4,815 BO/D and 13,163 MCF/D) on Full 24-Hour Test.

Tarpon Prospect. "Whiting has set a new initial production record for all Bakken wells drilled in the Williston Basin. The Tarpon Federal 21-4H well was completed in the Middle Bakken (after a 30 stage sliding sleeve frac job) flowing 4,815 barrels of oil and 13,163 Mcf of gas (7,009 BOE) per day on October 17, 2011. The Company owns a 56% working interest and a 45% net revenue interest in the Tarpon well. Whiting drilling engineers also set a new Tarpon Prospect area record by drilling this well to total depth in 13.3 days. We expect the completed well cost to be $6.35 million. Whiting holds 8,125 gross (6,265 net) acres at the Tarpon prospect, which is located in McKenzie County, North Dakota. Whiting has controlling interests in four 1,280-acre Tarpon prospect spacing units. We have the potential to drill a total of 12 Middle Bakken and eight Three Forks wells in these units. Based on our drilling to date, we believe 100% of the prospect is now drillable for the Middle Bakken and de-risked. Please see the Tarpon map in our corporate presentation."

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Eagle Ford Shale - Price Cost Per Acre - Mineral Rights Leases

2011-11-07T14:56:00.000-05:00

By Tim - http://oilshalegas.com

November 7, 2011 - Whiting Petroleum (WLL) recently announced some good Eagle Ford Shale mineral rights leasing data. They sold 3,532 Eagle Ford Shale acres in Karnes County, Live Oak County, and DeWitt County Texas for a total of $66.4 Million.

Prospective Eagle Ford Acreage Sold for $66.4 Million, $12,542 per Net Acre

"During the third quarter, Whiting sold approximately 3,532 net leasehold acres prospective for oil and gas production from the Eagle Ford formation in Karnes, Live Oak and Dewitt Counties, Texas for a total cash consideration of $66.4 million before closing adjustments. The transaction, which was effective July 1, 2011, closed on September 29, 2011. Whiting used the net proceeds from the property sale to reduce the amount drawn under its Credit Agreement.

The non-core acreage sold is located in Kawitt, Nordheim and Three Rivers Fields, which produce from the Speary, Edwards, Wilcox and Eagle Ford formations. Recent net daily production was approximately 4.0 MMcfe from 33 producing wells. The property sale also included 16 shut-in and temporarily abandoned wells. The estimated proved net reserves associated with the producing properties were 1.1 MMBOE. Whiting valued the existing production in the transaction at $22.1 million net of plugging liabilities and the acreage at $44.3 million net of the production value, or approximately $12,542 per net acre."

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Columbia County Arkansas - Smackover Brown Dense Shale

2011-11-07T10:25:00.000-05:00

By Tim - http://oilshalegas.com

November 7, 2011 - Southwestern Energy (SWN) provided a drilling update on the Smackover Brown Dense Formation located in Arkansas and North Louisiana. The lower Smackover and Brown Dense formations have been a hot topic lately due to the huge oil potential. There are multiple zones that have a chance to produce both oil and natural gas. The Smackover Brown Dense play will be a hot shale field in 2012 so stay tuned. Southwestern Energy (SWN) had this to say about the find.

"Included in the approximately 948,000 net acres are 487,000 net acres located in the Lower Smackover Brown Dense formation, an unconventional oil reservoir found in southern Arkansas and northern Louisiana. The company spud its first well in September, the Roberson 18-19 #1-15H located in Columbia County, Arkansas, and is currently drilling the lateral portion of the well. This well has a vertical depth of approximately 9,200 feet and a planned horizontal lateral length of 4,000 feet. The well is expected to be completed in November. The company will spud its second well, the Garrett 7-23-5H #1 located in Claiborne Parish, Louisiana in November. This well has a planned total vertical depth of approximately 10,700 feet and a planned 7,900-foot horizontal lateral. The company plans to drill up to 8 additional wells as we continue to test the concept in 2012. If the company's drilling program yields positive results, it expects that activity in the play could increase significantly over the next several years."

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Alberta Canada Oil Shale - Exshaw Shale

2011-11-06T17:51:00.000-05:00

By Tim - http://oilshalegas.com

November 7, 2011 - Murphy Oil (MUR) recently gave an update on the Exshaw Shale Oil Field located in Southern Alberta Canada. The Exshaw Shale is an emerging oil field in Canada which also extends down into Montana.

"In Southern Alberta, our Exshaw Bakken appraisal program has completed the first phase. We have drilled a total of 6 wells, the last well is awaiting completion, 2 wells are showing productive capability in line with expectations, 1 well is producing at very low rates and 2 wells are shut in to evaluate. Overall, production results from the first phase of wells have been mixed, and we continue to evaluate the play to identify sweet spots and areas for improvement.

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Utica Shale - Anadarko Petroleum (APC) - Ohio

2011-11-06T17:25:00.000-05:00

By Tim - http://oilshalegas.com

November 7, 2011 - The Utica Shale continues to heat up! Anadarko Petroleum (APC) recently announced in their earnings report that they've added 300,000 acres of mineral rights in the Utica Shale (Ohio). Anadarko Petroleum (APC) is after the oil in this shale play.

"Additionally, in the U.S. onshore, we've been assembling a position in Ohio's Utica Shale, and over time, we have acquired interests in approximately 300,000 gross acres in the prospective liquids-rich window at attractive entry costs. We've recently spud our first well in the play and look forward to an active drilling program in this emerging area."

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Bakken Shale - Kodiak Oil & Gas (KOG)

2011-11-06T17:10:00.000-05:00

By Tim - http://oilshalegas.com

November 6, 2011 - Kodiak Oil & Gas (KOG) recently gave an update on the Bakken Shale and Three Forks Play. Kodiak Oil & Gas (KOG) is one of the up and coming exploration companies in the Bakken Shale due to their aggressive mineral rights leasing binge.

Kodiak’s five operated drilling rigs are presently drilling ahead on multi-well drilling pads. Three rigs are drilling in McKenzie County, and two rigs are drilling in Dunn County.

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Eagle Ford Shale - LaSalle Frio County Texas Oil Wells

2011-11-06T09:07:00.000-05:00

By Tim - http://oilshalegas.com

November 6, 2011 - The Eagle Ford Shale continues to produce some nice oil wells as we head into 2012. Goodrich Petroleum (GDP) recently reported some of their oil well data which you will see below. These Eagle Ford Shale wells are located in LaSalle County, TX & Frio County, TX.

Eagle Ford Shale, LaSalle and Frio Counties, Texas

The Company completed the following five Eagle Ford Shale wells during the quarter, with an average 24-hour peak production rate of 907 BOE per day:

Burns Ranch 20H (67% WI), a 5,960 foot lateral with 21 frac stages, at a 24-hour peak production rate of 1,080 barrels oil equivalent ("BOE") per day;
Burns Ranch 2H (67% WI), an 8,320 foot lateral with 29 frac stages, at a 24-hour peak production rate of 1,004 BOE per day;
Burns Ranch 3H (67% WI), a 5,160 foot lateral with 19 frac stages, at a 24-hour peak production rate of 953 BOE per day;
Burns Ranch 18H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 883 BOE per day;
Burns Ranch 19H (67% WI), a 5,940 foot lateral with 21 frac stages, at a 24-hour peak production rate of 613 BOE per day.

The Company completed two additional Buda Lime wells in the quarter:

Carnes 7H (65% WI), an un-stimulated 4,215 foot lateral, at a 24-hour peak production rate of 1,167 BOE per day and a 30-day average of 871 BOE per day (762 BO and 655 Mcf per day);
Burns Ranch 30H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 500 BOE per day.

The Company is in completion phase on the following wells:

Burns Ranch 35H (67% WI), an 8,880 foot lateral with 32 planned frac stages;
Burns Ranch 16H (67% WI), a 5,710 foot lateral with 20 planned frac stages;
Burns Ranch 22H (67% WI), a 5,520 foot lateral with 20 planned frac stages;
Shiner G-1 (67% WI), a 4,190 foot lateral in the Buda Lime;
Shiner G-4 (67% WI), a 4,130 foot lateral in the Buda Lime;

Shale News

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Cardium Shale - Devon Energy (DVN) Hits Oil in Canada

2011-11-06T07:37:00.000-05:00

By Tim - http://oilshalegas.com

November 6, 2011 - Devon Energy (DVN) has released an update on drilling in the Cardium Shale located in Canada. The Cardium Shale is an emerging oil shale play which we will start to hear more about in the coming years, especially if oil prices hit record highs.

Cardium Shale wells produce 770 BOE per day

"Also in Canada, Devon completed 19 exploration wells targeting oil and liquids-rich opportunities across its more than 4 million net acres in the Western Canadian Sedimentary Basin. The company tied in 10 of these wells to production in the third quarter. This activity was highlighted by results in the Ferrier area where the company commenced production on three Cardium wells with initial production averaging 770 Boe per day per well."

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Continental Resources (CLR) - Bakken Shale

2011-11-06T07:10:00.000-05:00

By Tim - http://oilshalegas.com

November 6, 2011 - Continental Resources, Inc. (NYSE:CLR) recently gave an update on the Bakken Shale and Three Forks Play. Continental Resources, Inc. (CLR) is the leader in the Bakken Formation with over 900,000 acres of mineral rights leases.

The Company successfully completed the Charlotte 2-22H (91% WI) in McKenzie County, North Dakota, in October 2011, with the well producing 1,140 gross Boepd in its initial one-day test period. This is the Company's first horizontal test of a deeper bench in the Three Forks formation.

In terms of Company-operated wells, Continental completed 46 gross (24.5 net) wells in the Bakken in the third quarter. Average initial one-day test period production was 1,096 Boepd for the Company's operated wells in the third quarter. The Company currently has 45 gross operated wells in various stages of completion. Of these, 20 are scheduled to be fracture-stimulated, and 25 have been fracked and are being readied to go into production.

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Woodford Shale - Exxon Mobil (XOM)

2011-11-05T15:05:00.000-04:00

By Tim - http://oilshalegas.com

November 5, 2011 - Exxon Mobile (XOM) is now heavily involved in the Woodford Shale as of late 2011. The Woodford Shale and Cana Woodford Shale have been explored by many companies for oil in 2011. Oklahoma residents have been signing away mineral rights leases at a record pace. Exxon Mobile (XOM) had this to say about the Woodford Formation.

"We are also involved in multiple emerging liquids-rich shale plays, the most active of which is the Woodford shale in the southern Oklahoma Ardmore Basin area. To date, we have amassed more than 150,000 net acres in this play through an aggressive leasing and acquisitions program. This leadership position has been built at an attractive cost. As we acquired resources for approximately $0.30 per 1,000 cubic feet equivalent and added the leasehold for under $600 per acre.Our activity in the Woodford Ardmore play has ramped up significantly in 2011, with our operated rig count increasing from 3 to 7 rigs and gross operated production more than tripling since year-end 2010.

In our core development area, peak 7-day gross production rates have averaged 325 barrels per day of crude oil and 3.7 million cubic feet per day of natural gas, with a rich 1,275 BTU gas also yielding significant natural gas liquids, providing an average liquids rate per well of over 750 barrels per day and 2.9 million cubic feet per day of sales gas. We are continuing to ramp up drilling activity and are progressing both marketing and infrastructure plans for the play.

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Smackover Brown Dense Formation - Lower Smackover Shale

2011-11-05T10:24:00.002-04:00

By Tim - http://oilshalegas.com

November 5, 2011 - Southwestern Energy (SWN) provided a drilling update on the Smackover Brown Dense Formation located in Arkansas and North Louisiana. The lower Smackover and Brown Dense formations have been a hot topic lately due to the huge oil potential. There are multiple zones that have a chance to produce both oil and natural gas. The Smackover Brown Dense play will be a hot shale field in 2012 so stay tuned. Southwestern Energy (SWN) had this to say about the find.

Shale News

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Exxon Mobil (XOM) - Utica Shale

2011-11-05T10:04:00.001-04:00

By Tim - http://oilshalegas.com

November 5, 2011 - Exxon Mobile (XOM) recently disclosed that they are involved in the Utica Shale. The Utica Shale, located mainly in Ohio, is an oil & natural gas field that has been moving up on the Top 5 shale plays. Exxon Mobile (XOM) said this about their Utica Shale acreage.

"Exxon Mobil is also actively exploring several other early stage liquids-rich play in the United States, including the Utica Shale play in eastern Ohio and western Pennsylvania. Our position in the Utica stems from our recently completed acquisition of the Phillips companies and represents incremental upside to the Phillips acquisition, which was focused on the Marcellus. The Phillips acquisition included 45,000 net acres prospective for the Utica in Ohio, and we have increased our position now to over 75,000 net acres. We anticipate drilling our first Utica well in early 2012."

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Utica Shale - Chesapeake Energy (CHK) Joint Venture

2011-11-04T07:30:00.001-04:00

By Tim - http://oilshalegas.com

November 4, 2011 - Chesapeake Energy (CHK) announced major Utica Shale news last night in the form of a joint venture (JV). Chesapeake Energy (CHK) Announces Utica Shale Joint Venture and Utica Shale Financial Investment with Potential Combined Proceeds Net to Chesapeake of Approximately $3.4 Billion. This is the largest deal to date in the Utica Shale and is a sign of things to come!

JV Transaction Values 570,000 Net Acres of Chesapeake Utica Shale Leasehold at $8.55 Billion, or $15,000 Per Net Acre

Financial Transaction Provides up to $1.25 Billion to Accelerate Drilling Across All Phases of Chesapeake’s Utica Acreage, Including Dry Gas and Oil Areas

Chesapeake Energy Corporation (NYSE:CHK) today announced two transactions to monetize a portion of its 1.5 million net acres of leasehold in the Utica Shale play primarily in eastern Ohio. Fully implemented, the transactions would result in consideration to Chesapeake of approximately $3.4 billion.

Chesapeake has entered into a letter of intent (“LOI”) with an undisclosed international major energy company for an industry joint venture (“JV”) through which the JV partner will acquire an undivided 25% interest in approximately 650,000 net acres of leasehold in the wet natural gas area of the Utica Shale play. Of this acreage, approximately 570,000 net acres are owned by Chesapeake, and approximately 80,000 net acres are owned by Houston-based EnerVest, Ltd. and its affiliates (“EnerVest”). The JV area covers all or a portion of 10 counties in eastern Ohio (the “JV AMI”). The consideration for the transaction will be $15,000 per net acre, or approximately $2.14 billion to Chesapeake and approximately $300 million to EnerVest. Approximately $640 million of the consideration to Chesapeake will be paid in cash at closing, and approximately $1.5 billion will be paid in the form of a drilling and completion cost carry, which Chesapeake anticipates fully receiving by year-end 2014.

Chesapeake will serve as the operator of the JV and will conduct all leasing, drilling, completion, operations and marketing activities for the project. The LOI provides that the JV partner will have the option to acquire a 25% share of all additional acreage acquired by Chesapeake in the JV AMI and the option to participate with Chesapeake for a 25% interest in midstream infrastructure related to production generated from the assets. The LOI provides for the execution of definitive transaction documents and closing by mid-December 2011.

Additionally, as a first step in a financial transaction led by EIG Global Energy Partners (“EIG”), Chesapeake has completed the sale to EIG of $500 million of perpetual preferred shares of a newly formed entity, CHK Utica, L.L.C. Chesapeake expects to sell up to $750 million of additional CHK Utica preferred shares to other investors, including limited partners of EIG, by November 30, 2011. CHK Utica is a wholly owned, unrestricted subsidiary of Chesapeake that owns approximately 700,000 net leasehold acres within an area of mutual interest in the Utica Shale play in 13 counties primarily in eastern Ohio (the “CHKU AMI”) that encompasses the JV AMI. Chesapeake has retained all the common interests in CHK Utica.

The CHK Utica preferred shares are entitled to receive an initial annual distribution of 7%, payable quarterly. Chesapeake retains an option exercisable prior to October 31, 2018 to repurchase the preferred shares for cash in whole or in part at any time at a valuation expected to equal the greater of a 10% internal rate of return or a return on investment of 1.4x. Assuming a total of $1.25 billion of CHK Utica preferred shares are purchased, investors in CHK Utica preferred shares will also receive a 3% overriding royalty interest in the first 1,500 net wells drilled on CHK Utica’s leasehold, which is the equivalent of an approximate 0.45% overriding royalty interest across Chesapeake’s projected 10,000 net well inventory. Chesapeake’s average net revenue interest on its Utica Shale leasehold is approximately 83%, which compares favorably to net revenue interests in the Haynesville, Barnett and Eagle Ford shale plays of approximately 75%.

As part of the financial transaction, Chesapeake has committed to drill a minimum of 50 net wells per year through 2016 in the CHKU AMI, up to a minimum cumulative total of 250 net wells, for the benefit of CHK Utica. Chesapeake believes it will have considerable operating and financial flexibility in fulfilling the drilling commitment because the company’s planned Utica Shale drilling program for the years ahead involves a significantly higher rig count than the approximate 10-rig drilling program required by the terms of the CHK Utica preferred shares investment.

Shale News

Tuscaloosa Marine Shale - Encana (ECA) - Amite County, MS

2011-11-03T07:29:00.001-04:00

By Tim - http://oilshalegas.com

The Tuscaloosa Marine Shale is located in southern Louisiana as well as southwestern Mississippi. This emerging shale play is catching the eye of drilling companies due to the oil potential there. Could the Tuscaloosa Marine Shale find be a mini Eagle Ford Shale ? Only time will tell! One thing I like to do is to buy the stocks in these new shale fields, especially when they have a huge stake in the discovery. Encana (ECA) is the stock you will want to watch. Encana has over 270,000 acres in the Tuscaloosa Marine Trend and they have already hit a 30 day initial rate of 310 barrels of oil in Amite County, MS. Stay Tuned for more details!

http://www.oilshalegas.com/tuscaloosamarineshale.html

Carroll County, Ohio (OH) Utica Shale

2011-08-03T09:11:00.000-04:00

By Tim - http://oilshalegas.com

Rex Energy (REXX) has come out and updated investors on their Utica Shale Acreage located in Carroll County, Ohio. Mineral Rights land leasing has ramped up in Ohio due to the potential for a huge oil discovery in the region. Price Per acre is surging over $3,500 in the sweet spots.

http://oilshalegas.com/uticashale.html

Rex Energy has acquired the rights to lease approximately 11,000 net acres in Carroll County, Ohio (subject to title review) where the company intends to conduct exploratory operations for oil and natural gas within the Utica Shale. The company is continuing to lease acreage in this area and is planning its first well in 2012. The company expects to pay approximately $40 million or an average of $3,600 per acre.

For additional information on the Warrior Prospect, please visit the company's website at www.rexenergy.com and refer to the updated corporate presentation.

Chevron (CVX) Utica Shale - Oil & Gas Update

2011-08-02T11:12:00.000-04:00

By Tim - http://oilshalegas.com

Chevron Corporation (NYSE:CVX) recently updated investors on It's Utica Shale prospective acreage. Chevron (CVX) has a large position in the Utica Shale but has not started drilling yet.

Evan Calio - Morgan Stanley

Okay. And a second question for George and maybe more pointed than Paul's. I mean, clearly, excitement's been building on the Utica shale opportunity. And then something that's a bit of a focus this morning with Chesapeake's release and conference call. I know and I believe Chevron has 600,000 acres that you disclosed that has Utica oil shale exposure. But you didn't call that out in Slide 17. Maybe you could discuss how you're thinking about activity there and play potential into 2012?

George Kirkland

Okay. Well, let me first say we believe it's a little bit too soon to conclude on the potential of the Utica. We've got a good acreage position in the Utica from the Atlas acquisition. We're going to do what we do everywhere in the world. We're going to evaluate that. And the only the way we can evaluate it is we're going to have to drill some wells and test performance. So it's something for the future, but it's, like you say, too early at this point in time to, I think, hype it.

The Utica Shale holds both Oil & Natural Gas and extends down from Canada into the states of New York, Pennsylvania, Ohio, and West Virginia. Chesapeake Energy (CHK) recently announced a major oil discovery in the Utica Shale Field and is excited about the prospects in Ohio. Could Utica Shale be as big as the Eagle Ford Shale? Only time will tell!

http://oilshalegas.com/uticashale.html

Utica Shale - Ohio Oil Field

2011-08-01T10:59:00.000-04:00

By Tim - http://oilshalegas.com

Utica Shale minerals rights are heating up after Chesapeake Energy (CHK) came out with news about estimates related to their acreage position. Drilling for oil in the Utica Shale Ohio area is set to ramp up towards the end of 2011 and into 2012.

Chesapeake Announces a Major New Liquids-Rich Discovery in the Utica Shale in Eastern Ohio

Having achieved successful results from recent drilling activities in eastern Ohio, Chesapeake is announcing the discovery of a major new liquids-rich play in the Utica Shale. Based on its proprietary geoscientific, petrophysical and engineering research during the past two years and the results of six horizontal and nine vertical wells it has drilled, Chesapeake believes that its industry-leading 1.25 million net leasehold acres in the Utica Shale play could be worth $15 - $20 billion in increased value to the company. Chesapeake’s dataset on the Utica Shale includes approximately 2,000 well logs, full-suite petrophysical data on approximately 200 wells, 3,200 feet of proprietary core samples from nine wells and production results from three wells. As a result of its analysis, the company believes the Utica Shale will be characterized by a western oil phase, a central wet gas phase and an eastern dry gas phase and is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.

Chesapeake is currently drilling in the Utica Shale with five operated rigs to further evaluate and develop its leasehold and anticipates increasing its rig count to eight by the end of 2011 and reaching at least a range of 16-20 rigs by year-end 2012. Also, the company believes that its leasehold position in the Utica Shale will support a drilling effort of at least 40 rigs by year-end 2014. Chesapeake is currently conducting a competitive process to monetize a portion of its Utica Shale leasehold position, which will be through an industry joint venture process or through a number of other monetization alternatives. The company anticipates completing a Utica Shale transaction in the 2011 fourth quarter.

See Also:

http://oilshalegas.com/uticashale.html

http://oilshalegas.com/eaglefordshale.html

http://oilshalegas.com/bakkenshale.html

Big Tex Horizontal Well - Bissett 9701 - Producing 788 BOED

2011-07-30T12:15:00.001-04:00

By Tim - http://oilshalegas.com

Whiting Petroleum (WLL) has released data on one if their Big Tex well today, Bissett 9701, which is located in the Permian Basin. Whiting Petroleum (WLL) is an oil driller that focuses on the Bakken Shale & Niobrara Shale but has recently tested the Big Tex.

Big Tex First Horizontal Well, Bissett 9701, Producing 788 BOE/D After Fracture Stimulation

Big Tex Prospect. Whiting fraced its first horizontal well at the Big Tex prospect the first week of July 2011. The Bissett 9701, located in the Delaware Basin in Pecos County, Texas, produced 788 BOE per day (92% oil) from the Wolfbone on July 25, 2011. The well is still cleaning up after frac. The well's 3,610-foot lateral was fracture stimulated in a total of 16 stages, all using sliding sleeves.

As of July 15, 2011, Whiting had accumulated 116,494 gross (88,062 net) acres in our Big Tex prospect area in Pecos, Reeves and Ward Counties, Texas in the Delaware Basin. Our average acreage cost to date is $540 per net acre, and we have an average working interest of 76% and an average net revenue interest of 57%.

SM Energy Company (SM): Eagle Ford Shale Update

2011-07-07T12:26:00.000-04:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently released an update on its position in the Eagle Ford Shale located in LaSalle County and Dimmit County, TX.

SM Energy Company has entered into an agreement with a subsidiary of Mitsui & Co., Ltd. concerning a 12.5% working interest in its non-operated Eagle Ford shale position. The Company will be carried on 90% of its drilling and completion costs (excluding costs associated with construction of mid-stream gathering assets) in this acreage until $680 million has been expended for the benefit of SM Energy. The purchaser will also reimburse SM Energy for the purchaser's share of capital expenditures and other costs, net of revenues, related to the period between the effective date of March 1, 2011, and the closing date. These reimbursed costs (net of revenues), estimated to range between $20 and $40 million, will be payable to SM Energy at closing and the Company will apply these funds to the remaining 10% of SM Energy's drilling and completion costs in this acreage. As a result, the Company will effectively be 100% carried until this reimbursement amount is exhausted. Once the reimbursement dollars have been expended, the Company will remain 90% carried until the remaining portion of the $680 million carry has been spent. The purchaser will also reimburse SM Energy for 50% of the Company's total capital investment expenditures in the related mid-stream assets in which the purchaser is acquiring an interest. This reimbursement is estimated to range between $20 and $30 million. The use of the reimbursement proceeds related to the mid-stream assets is not restricted and the proceeds will be treated as proceeds from divestitures in the Company's consolidated financial statements. Closing is anticipated to occur during the third quarter of 2011 and is subject to customary closing conditions and transaction fees.

After the closing of this transaction, SM Energy will have approximately 46,000 net acres in the non-operated portion of its Eagle Ford shale position, down from roughly 85,000 net acres. The Company's average working interest in this acreage will be reduced from approximately 27% to 14.5%. Reported average daily production from the Company's total non-operated Eagle Ford shale position at the end of the first quarter was 43.5 MMCFE/D (42% oil, 36% natural gas, and 22% NGLs). Proved reserves associated with the Company's total non-operated Eagle Ford shale position as of December 31, 2010 were 52 BCFE (52% proved undeveloped).

SM Energy will have roughly 196,000 net acres in the Eagle Ford shale, of which approximately 75% will be operated by the Company, after this transaction and the previously announced divestiture of Eagle Ford assets in LaSalle and Dimmit Counties, Texas are consummated. The size and timing of these transactions vary from the assumptions made in the Company's issued guidance, as these transactions are expected to close later in the year than originally anticipated and SM Energy is retaining a larger position in the Eagle Ford than was originally assumed. As a result, reported production and capital expenditures for the year will exceed the Company's currently published guidance. The Company will provide full capital, production, and cost guidance updates for the remainder of 2011, as well as preliminary capital and production guidance for 2012 in its second quarter earnings release.

SM Energy was advised on the transaction by Bank of America Merrill Lynch.

Tony Best, President and CEO, remarked, "I am pleased to announce the final phase of our planned Eagle Ford sell down effort. Combined with our previously announced LaSalle and Dimmit Counties Eagle Ford divestiture, we are generating nearly $1 billion in funds that will allow us to further develop our Eagle Ford assets while locking in some solid returns and maintaining a strong balance sheet. This specific transaction allows us to continue participating in the development of high value Eagle Ford assets, while providing us more control over our capital investment decisions."

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

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Dimmit County, TX: Eagle Ford Shale Update

2011-07-06T12:24:00.000-04:00

Eagle Ford Shale Training Classes July 9, 2011

2011-07-05T12:29:00.000-04:00

By Andrea: http://oilshalegas.com

American Right of Way Associates announced today that due to the demands of the oil & gas companies currently drilling south of San Antonio Texas, ARWA will hold two more Eagle Ford Shale Training Classes on Saturday, July 9th, 2011 at the Crowne Plaza San Antonio Airport Hotel. The classes are titled Right of Way Acquisitions Training and Land Title Research Training. These Classes were developed to teach the skills necessary for new right of way agents and title agents to serve the various oil and gas companies working in the Eagle Ford Shale play counties, between San Antonio and Corpus Christie Texas.

There is a need for trained right of way agents and title agents to assist with acquiring right of way for pipelines to carry natural gas and crude oil from individual well sites to existing pipeline infrastructure located Southwest of San Antonio, Texas. It is anticipated the development of the Eagle Ford Shale will continue for the next twenty years.

With the increase need for alternative energy, right of way would be the next opportunity for a career in the Oil & Gas Shale Plays. According to local professionals, right of way agents and title agents working in the Energy Industry typically earn between $45,000 and $90,000 annually depending upon experience and personal initiative.

"We have had successful training classes in the Barnett Shale, the Haynesville Shale and the Eagle Ford Shale plays for over six years," said Don Valden, CEO of American Right of Way Associates. "Our training has allowed hundreds of men & women to break into an industry that was once based on who you know, not what you know. It has been our experience with our clients that those days are behind us."

A one day training class work shop for both Right of Way acquisitions and Land Title Research are being offered at the Crowne Plaza San Antonio Airport Hotel located at 1111 NE 410 Loop.

San Antonio, Texas which is near the intersection of NE 410 Loop and Broadway Street. These training classes are exciting new training classes designed to train local individuals in the skills necessary to meet the demands for pipeline right of way agents and title agents created by the Eagle Ford Shale Oil & Gas drilling.

These classes will be taught by Don Valden, oil & gas industry expert and title expert Charlie Finley on Saturday, July 9th, 2011 from 8:30am to 12:30pm & 1:30pm to 5:30pm at the Crown Plaza San Antonio Airport Hotel and will provide training in the areas of Pipeline Right of Way Easement Acquisitions, Land Owner Negotiations, Real Estate Evaluation, Plats & Engineering, Route Selections, Pipeline Construction as well as Title Research, Title Runs Sheets, Plat & Deed Records. People who successfully complete the Training Program will receive a Certificate of Completion.

For more information, call 855-737-ARWA or go to the website www.AmericanRightofWay.com.

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

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

LaSalle County, TX: Eagle Ford Shale update

2011-07-05T12:22:00.000-04:00

Dunn County, North Dakota: Bakken Shale update

2011-06-23T08:52:00.002-04:00

By Andrea: http://oilshalegas.com

ENSERVCO Corp. (ENSV.OB) recently released an update on the Bakken Shale in Dunn County, North Dakota.

ENSERVCO purchased several acres in Killdeer, North Dakota, and has entered into a construction contract on a new operations center. The facility is expected to be operational in September and will be located in the heart of the Williston Basin's Bakken Shale formation, one of the largest and most active oil fields in the continental United States.

ENSERVCO expects to break ground on the site later this week. At full operation, the facility will support 30 to 35 employees and a comparable number of service and construction vehicles. The facility will feature a maintenance shop and equipment yard, multiple offices and living quarters for up to 16 employees.

"Many of our current customers have established large acreage positions and extensive drilling programs in the Bakken," said Mike Herman, chairman and CEO. "ENSERVCO is an approved service provider to these companies in other major fields, and they have encouraged us to expand our operations into North Dakota."

Initial customers in the Bakken are expected to include EOG Resources and Hess Corporation (two of the largest oil producers in the Basin), Whiting Petroleum, Brigham Exploration and Chesapeake Energy.

Low average annual temperatures in North Dakota result in frac-fluid heating requirements that can extend eight to 10 months out of the year, according to ENSERVCO's customers. Many of these companies also have expressed a need for year-round well maintenance services such as hot oiling and acidizing, as well as well-site construction services.

"We believe our move into the Bakken could be as strategically significant as our successful expansion last year into the Marcellus Shale," Herman said.

ENSERVCO's North Dakota location will commence operations less than a month after the scheduled opening of its Niobrara Shale facility in Cheyenne, WY.

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

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Arenal Energy Corp. - Austin Chalk Update

2011-06-23T08:37:00.000-04:00

By Andrea: http://oilshalegas.com

Arenal Energy Corporation recently released an update on the Austin Chalk Formation. The company is seeking oil reclamation and production opportunities in the Austin Chalk geologic formation, which extends through Texas into Louisiana and overlays the Eagle Ford shale formation.

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

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Pryme Energy Limited: Austin Chalk Formation Update

2011-06-23T08:31:00.000-04:00

By Andrea: http://oilshalegas.com

Pryme Energy Limited (PYM.AX, POGLY.PK) recently provided an update on its operations in Louisiana, on the Turner Bayou project in the Austin Chalk Formation:

The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are the Austin Chalk formation at 15,300 feet and the Eagle Ford formation at 16,000 feet.

Deshotels 13H No.1 (40% Working Interest / 30% NRI)

Drilling of the second well in the Turner Bayou Chalk project, the Deshotels 13H No.1 well in North Bayou Jack Field, has resumed and is currently at a depth of 7,640 feet (2,328 metres). The well will be drilled to a vertical depth of approximately 15,000 feet (4,570 metres) with a 4,000 foot (1,220 metre) lateral through the Austin Chalk formation. The total measured depth of the well will be 19,000 feet (5,790 metres). It is expected that it will take approximately 2 months to reach target depth (early August). Following completion the well will be connected to the Deshotels 20H No.1 production facilities.

This is the second well to be drilled in the Turner Bayou Chalk project. The first well, the Deshotels 20H No.1, encountered significant major phase oil fractures interpreted from the 3D seismic survey resulting in oil being produced to the surface and natural gas flared while drilling. Mechanical problems during the completion of the Deshotels 20H No.1 hindered the effective completion of the well and it is currently producing below expectations at 150 barrels per day of oil and approximately 130 mcf per day of natural gas. Pryme and its partners plan to rectify the Deshotels 20H No.1 following the drilling and bringing into production the current well.

The drilling procedure for the Deshotels 13H No.1 well involved a small rig to drill the surface hole and running casing to a depth of 4,500 feet (1,370 metres.) The surface hole was drilled on a fixed fee contract basis and was completed on 17 May. A larger rig has been mobilized to site to drill the remainder of the vertical section of the well and the lateral.

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

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Sharewell Energy Services: Green River Formation

2011-04-12T18:13:00.000-04:00

By Andrea: http://oilshalegas.com

Sharewell Energy Services recently announced the completion of a 13,000 ft well located in the Green River Formation.

Sharewell Energy Services, a division of Sharewell L.P. announced that it just completed the drilling of a well in the Rocky Mountain area with its proprietary Electro-Magnetic Measurement While Drilling System (EM MWD) (Electro-Trac(TM)) to a depth in excess of thirteen thousand feet (13,000 feet). This is a record depth for Sharewell's state-of-the-art EM MWD technology.

Electro-Trac(TM) successfully steered and surveyed the above well to a measured depth of 13,065 feet (12,902 feet TVD) accumulating 700+ circulating hours without failure. This was accomplished without the use of repeaters or hard wiring. The Electro-Trac EM MWD was developed with initial funding from a Department of Energy (DOE) grant as part of the Deep Trek Initiative. Part of the Deep Trek Initiative's focus was to develop lower cost methods of developing deep gas via development of a unique Electro Magnetic transmission system.

Conventional EM MWD systems have depth limitations due to their inability to generate the required amplitude necessary to penetrate the increasing overburden of the surrounding geology, and/or detect and adequately filter the ambient noise. EM MWD technology is preferred over traditional, "mud pulse" MWD systems which require generation and subsequent acquisition of fluid pressure changes to transmit the required data. EM MWD saves operators substantial survey time which translates into cost savings for oil and gas operators.

Sharewell L.P. is successfully operating the Electro-Trac(TM) MWD system in multiple reservoirs/basins including Eagleford Shale, Barnett Shale, Marcellus Shale, New Albany Shale, Fayetteville Shale, Antrim Basin, San Juan Basin, Piceance Basin, and Uinta Basin.

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

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Contango Oil and Gas Co. (MCF): Fayetteville Shale Update

2011-04-12T18:00:00.000-04:00

By Andrea: http://oilshalegas.com

Contango Oil & Gas Company (MCF) announced today that it has committed to invest up to $20 million over the next two years, in a joint venture that will acquire, operate, explore, and develop onshore unconventional shale operated and non-operated oil and natural gas assets (including undeveloped oil and gas leasehold interests), as well as produce and sell any hydrocarbons produced from such assets. Other participants include Alta Resources, LLC and Blackstone Capital Partners.

Kenneth R. Peak, Contango's Chairman and Chief Executive Officer, said, "We are pleased about the opportunity to be partners once again with Joe Greenberg and Alta Resources. Alta was our partner in our very successful Fayetteville Shale investment and they have been leaders in recognizing and capturing value in shale plays. We also look forward to being partners with Blackstone with their financial acumen and expertise."

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

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Magnum Hunter Resources (MHR): Marcellus Shale Update

2011-04-12T17:53:00.000-04:00

By Andrea: http://oilshalegas.com

Magnum Hunter Resources Corporation (MHR) announced this afternoon that the Supreme Court of British Columbia today issued a final order approving the acquisition by Magnum Hunter of NGAS Resources, Inc. in an all-stock transaction structured as a statutory arrangement under British Columbia law, where NGAS is organized. NGAS Resources' primary function is in the Appalachian Basin where Marcellus Shale can be found.

Additionally, the NGAS shareholders approved the acquisition of NGAS by Magnum Hunter on April 8, 2011. The transaction, which is subject to additional closing conditions, is expected to close tomorrow, April 13, 2011. Upon closing of the transaction, each outstanding common share of NGAS will be transferred to Magnum Hunter for the right to receive 0.0846 shares of Magnum Hunter common stock, and NGAS will become a wholly-owned subsidiary of Magnum Hunter.

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

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

Kodiak Oil and Gas Corp: Bakken Shale Update

2011-03-23T13:46:00.000-04:00

By Andrea: http://oilshalegas.com

Kodiac Oil and Gas Corp. (KOG) recently released an update on their Bakken shale activity located in Dunn County, ND:

Kodiak will be mobilizing its third drilling rig in the Williston Basin within 30 days. Kodiak is also participating in one non-operated drilling rig with its joint venture partner in the Dunn County area of mutual interest. The joint venture partner recently reached total depth on its first two long-lateral middle Bakken wells and they are awaiting completion. Kodiak owns a 50% WI and 41% NRI in both wells and retains a comparable interest in all of the AMI lands. The Company has recently been notified that its joint venture partner intends to mobilize a second rig to the AMI in mid-year 2011.

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

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Kodiac Oil and Gas Corp (KOG) : Bakken Shale Update

2011-03-20T13:54:00.000-04:00

McKenzie County, ND: Bakken Shale Update

2011-03-20T13:51:00.000-04:00

By Andrea: http://oilshalegas.com

Kodiak Oil and Gas Corp. (KOG) recently released an update on their activity in the Bakken Shale located in McKenzie County, ND:

In 2010, Kodiak spud or participated in seven gross (4.1 net) wells and completed two gross (1.0 net) wells on its McKenzie County leasehold. During 2011, Kodiak plans to drill or participate in nine gross (6.7 net) wells and complete 10 gross (7.7 net) wells in this area. Kodiak expects to operate all nine gross wells to be drilled, with an estimated 74% average working interest. As of February 28, 2011, three gross (2.4 net) wells, one of which is a Three Forks test, were drilled and awaiting completion in McKenzie County. Completion work is scheduled for March 2011 on the first of two drilling pads in this area.

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

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Dunn County, ND: Bakken Shale Update

2011-03-20T13:42:00.001-04:00

MDU Resources Group, Inc. (MDU) - Bakken Shale Update

2011-01-07T11:51:00.000-05:00

By Andrea: http://oilshalegas.com

An additional 10,000 net acres of leaseholds were recently acquired by MDU Resources Group, Inc. (MDU) in the Heart River area of the Bakken, bringing its total acreage position in the Bakken oil play to more than 67,000 net acres. In 2010, the company acquired more than 50,000 net exploratory acres in the North Dakota Bakken area, bringing its total acreage position in this oil play to more than 67,000 net acres. The newly acquired acreage, the Heart River project, is located in Stark County. Plans include drilling three exploratory wells this year to evaluate this acreage targeting the Three Forks formation. Initial lease terms extend up to five years and include renewal options available to the company.

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

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Goshen County, WY - Niobrara Shale Update

2011-01-07T11:45:00.000-05:00

By Andrea: http://oilshalegas.com

MDU Resources Group Inc. (MDU) announced recently that they are active in the Niobrara Oil Play - Earlier this year, the natural gas and oil business acquired approximately 88,000 net acres in the emerging Niobrara oil shale play. Since that time, interest and leasehold costs in the play have increased. The company recently signed an agreement to sell a 25 percent working interest to a well-capitalized partner, which helps manage the company’s overall portfolio risk and capital requirements.

Also in 2010, the company acquired approximately 88,000 net exploratory acres in the emerging Niobrara oil play in Laramie and Goshen Counties in southeastern Wyoming. In October 2010, an agreement was signed to sell a 25 percent working interest in this acreage, reducing the company’s portfolio risk and capital requirements, bringing its acreage position to approximately 66,000 net acres. The company plans to begin drilling exploratory wells in the area in 2011. Lease terms are generally five years with most having five-year renewal options available to the company

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

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McMullen County, TX: Eagle Ford Shale Update

2011-01-06T11:29:00.000-05:00

By Andrea: http://oilshalegas.com

Comstock Resources Inc. (CRK) has initiated development of its Eagle Ford shale acreage in Atascosa, Karnes and McMullen counties in South Texas. Comstock has drilled the Rancho Tres Hijos #1H in McMullen county to a vertical depth of 11,020 feet with a 4,091 lateral and has drilled the NWR #1H in Atascosa county to a vertical depth of 8,715 feet with a 5,209 foot lateral. These wells are scheduled for completion in November. Comstock is currently drilling its third Eagle Ford shale well in Karnes county.

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

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Comstock Resources (CRK): Bossier Shale Update

2011-01-06T11:23:00.000-05:00

By Andrea: http://oilshalegas.com

In the East Texas/North Louisiana region, Comstock Resources (CRK) has drilled 55 wells (33.6 net) in 2010. Fifty-four of the wells are Haynesville or Bossier shale wells. As of November 1, 2010, twenty-four of the 54 Haynesville or Bossier shale wells drilled in 2010 have been completed and were put on production at an average per well initial production rate of 10.8 MMcfe per day. Comstock expects to complete fourteen operated Haynesville or Bossier shale wells in the fourth quarter. In addition to its Haynesville shale horizontal drilling program, Comstock has drilled two vertical wells during 2010. Comstock successfully completed a Cotton Valley well in its Blocker field in East Texas.

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

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Red River Parish, LA: Bossier Shale Update

2011-01-06T10:31:00.000-05:00

By Andrea: http://oilshalegas.com

Forest Oil Corp. (FST) drilled and completed three wells in the third quarter of 2010. In order to optimize recovery from Haynesville / Bossier Shale wells, Forest has adopted a restricted flow rate production program. With this operating strategy, initial production rates from the last three wells were curtailed at 11 to 13 MMcfe/d. Results have shown that cumulative production from the restricted-rate wells has exceeded the cumulative production from comparable unrestricted wells after approximately 90 days. Further, early indications support expectations that estimated ultimate recoveries for restricted-rate wells should exceed recoveries for less restricted wells.

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

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Exxon Mobile Corp. (XOM) - Bossier Shale Update

2011-01-05T11:57:00.000-05:00

By Andrea: http://oilshalegas.com

During the 3rd quarter of 2010, Exxon Mobile Corp. (XOM) finalized a merger agreement with Ellora Energy. This acquisition has increased our position in the attractive Haynesville/Bossier plays by 46,000 acres and added current production and pipeline capacity. In addition, our gas marketing team is working with XTO to optimize shipping, processing and marketing activities across our United States portfolio. We are also capturing reverse integration benefits in legacy Exxon Mobil operations both in the United States and overseas.

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

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Karnes County, Texas: Eagle Ford Shale Update

2011-01-05T11:28:00.000-05:00

Exxon Mobile Corp. (XOM) - Haynesville Shale Update

2011-01-04T11:56:00.000-05:00

Stark County, ND - Bakken Shale Update

2011-01-04T11:51:00.000-05:00

Laramie County, WY - Niobrara Shale Update

2011-01-04T11:45:00.000-05:00

Nexen Inc. (NXY) - Horn River Basin Update

2011-01-04T11:39:00.001-05:00

By Andrea: http://oilshalegas.com

During the third quarter, Nexen Inc.(NXY) completed a 144 frac program on their eight-well pad in the Horn River at an industry-leading pace of 3.5 fracs per day with a 100% frac success rate. Earlier this year, they completed their drilling campaign here at an average rate of under 25 days per well. Compared to their previous program, these wells were drilled in 35% fewer days and were 80% longer. They recently started production testing these wells and expect to reach peak production rates of 50 mmcf/d this winter. They plan to follow up this successful program with a nine well pad that would start drilling this winter. The wells would be fraced and completed next summer with first production in the fourth quarter of 2011. This allows them to advance their Horn River play while they progress their plans for an 18-well pad to be drilled next winter with first production expected in late 2012.

"Our performance in the Horn River continues to be top quartile with the successful execution of our drilling and frac strategies. This type of execution will lead to higher returns on this business," commented Romanow. "This play is expected to earn a ten percent rate of return with gas prices at US$4/mcf."

Nexen has approximately 90,000 acres at Dilly Creek in the Horn River basin. As previously announced, their Dilly Creek lands contain between 3 and 6 trillion cubic feet (0.5 to 1.0 billion barrels of oil equivalent) of recoverable contingent resource, assuming a 20% recovery factor. Following their success at a June land sale, they now have over 300,000 acres of highly prospective shale gas lands in the Horn River, Cordova and Liard basins in northeast British Columbia.

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

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Atascosa County: Eagle Ford Shale Update

2011-01-04T11:24:00.002-05:00

Comstock Resources (CRK): Haynesville Shale Update

2011-01-04T11:23:00.000-05:00

Red River Parish, LA: Haynesville Shale Update

2011-01-04T10:31:00.000-05:00

Forest Oil Corp. (FSP)- Granite Wash Update

2011-01-04T10:26:00.000-05:00

By Andrea: http://oilshalegas.com

Forest Oil Corp. (FSP) drilled and completed seven Granite Wash wells in the third quarter of 2010 that had an average 24-hour initial production rate of 27 MMcfe/d.

The results from the seven wells in the third quarter bring Forest's average 24-hour initial production rate from its horizontal Granite Wash program to 28 MMcfe/d. The program continues to expand the play both geographically, further north into Hemphill County, Texas, and geologically, with completions in two Granite Wash zones and one Atoka zone during the quarter.

Forest successfully tested an operated well with a 24-hour initial production rate of 16 MMcfe/d in its Canadian Southeast acreage in Hemphill County. Over 1,000 Bbls/d of this equivalent rate was attributable to condensate and NGLs. In addition, Forest participated with a non-operated working interest in a well in Canadian Southeast that had a 24-hour initial production rate of 15 MMcfe/d, including a sizable liquids component. Each of these wells confirmed the existence of highly productive, liquids-rich pay intervals in Forest's Canadian Southeast acreage. Drilling and completion costs associated with wells in this acreage position are expected to be less than wells in Wheeler County due to shallower depths. These wells are expected to open Forest's Canadian Southeast acreage to expanded exploitation efforts using horizontal drilling.

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

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PetroQuest Energy (PQ): Woodford Shale Update

2010-12-30T11:00:00.000-05:00

By Andrea: http://oilshalegas.com

PetroQuest Energy (PQ) recently announced that they have reached total depth on its forty-third Woodford operated horizontal well (4,592 foot lateral). The Company expects to complete its forty-second (5,068 foot lateral) and forty-third Woodford operated wells before year-end. In addition, the Company has taken delivery of its second Woodford rig and recently spud its forty-fourth Woodford operated well. To date, the Company has drilled 43 gross operated horizontal wells and participated in 38 non-operated horizontal wells in the Woodford. The Company's total horizontal well count represents approximately 9% of all horizontal wells drilled in the trend.

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

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PetroQuest Energy (PQ): Niobrara Shale Update

2010-12-30T10:54:00.000-05:00

By Andrea: http://oilshalegas.com

PetroQuest Energy, Inc. (PQ) recently announced that it has completed operations on its first two test wells in the Niobrara formation. The wells were designed to test differing geologic concepts relative to natural fracturing. The initial test well (Peterson #1- WI-25%) was selected to evaluate a location with less expected natural fracturing. The 4,962 foot lateral well was completed in November, but did not produce oil in commercial quantities.

The second well (Nevis #2, NRI-20%) was drilled approximately 15 miles from the Peterson #1 and tested a location where more natural fracturing was expected. The well was drilled with a 5,298 foot lateral section (20 frac stages) and was completed at an initial 24 hour gross daily rate of 831 barrels of oil and 205 Mcf of gas after cleaning up. Through the first two weeks of production, the well has averaged approximately 570 barrels of oil per day and is currently flowing at 407 barrels of oil per day. The Company estimates that the average gross cost per well for the initial two test wells was approximately $4.5 million.

Based on the results of the Nevis #2, the Company plans to proceed with a development plan in 2011 on its Niobrara acreage. The Company has a 25% non-operated working interest in approximately 20,000 gross acres (5,000 net acres) located in Southern Wyoming. Based on initial plans, the Company expects to participate in 12-15 gross wells during 2011. The Company expects to spud its third well (Hester #3, WI-25%) in January 2011.

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

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EXCO Resources, Inc. (XCO) - Marcellus Shale Update

2010-12-30T10:01:00.000-05:00

By Andrea: http://oilshalegas.com

EXCO Resources, Inc. (XCO) recently announced the acquisition of properties prospective for the Marcellus shale from Chief Oil & Gas LLC and related parties for approximately $459.4 million, after preliminary purchase price adjustments at the closing. The parties agreed to close the transaction into an escrow account pending receipt of a waiver from a third party, which is expected to be obtained by January 14, 2011. The transaction has an effective date of July 1, 2010.

The assets are located within the area of mutual interest established by the existing Appalachian joint venture with BG Group, plc. BG Group has the right to purchase 50% of this acquisition. Assuming BG Group elects to participate, the development of these assets would be governed by our Appalachian joint venture. The purchase price was financed with borrowings under EXCO's credit agreement.

The assets include producing properties with current gross production of approximately 40 Mmcf per day (16 Mmcf per day net) from 15 producing wells, 11 wells currently awaiting completion and over 50,000 net acres prospective for the Marcellus shale located primarily in Lycoming and Sullivan Counties in Northeastern Pennsylvania.

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

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Magnum Hunter Resources (MHR) approved for New York Stock Exchange (NYSE)

2010-12-30T09:57:00.000-05:00

By Andrea: http://oilshalegas.com

Magnum Hunter Resources Corporation (Amex:MHR) announced today that shares of its Common Stock have been approved for listing on The New York Stock Exchange. The Common Stock will continue to trade under the ticker symbol "MHR". The Company's shares will begin trading on the NYSE sometime during the first ten trading days of January 2011.

Mr. Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter Resources Corporation, commented, "As part of our business plan to improve the liquidity and exposure of our shares to the investment community here in the United States and worldwide, which includes both institutional and retail investors, we are pleased to announce this new milestone achievement by our Company. As the world's largest equity market, The New York Stock Exchange listing achieves that goal."

This is exciting news for Magnum Hunter Resources as it will increase the company's exposure and thus increase the sale of the stock.

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

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Comstock Resources (CRK): Haynesville Shale Update

2010-12-30T09:53:00.000-05:00

By Andrea: http://oilshalegas.com

Comstock Resources, Inc. (CRK) recently released an operational update where they they announced the distribution of their 2011 budget for natural gas.

They announced that they plan to spend approximately $522.0 million in 2011 for development and exploration activities. The 2011 drilling program will focus on the continued development and delineation of its Haynesville shale and Bossier shale properties in North Louisiana and its Eagle Ford shale properties in South Texas. Comstock is currently utilizing six operated drilling rigs for its drilling activity. Five of the rigs are currently drilling Haynesville or Bossier shale wells and one is currently drilling the Company's fourth Eagle Ford shale well. Comstock plans to release one of these rigs during the first quarter of 2011 and plans on moving one of the Haynesville shale rigs to the Eagle Ford by the middle of 2011.

The 2011 budget includes $110.2 million for completion costs for 25 (21.6 net) Haynesville or Bossier shale wells that were drilled in 2010 but will be carried into 2011 for completion by the Company's dedicated frac crew which will be under contract for 2011. In addition to completing the 25 wells drilled in 2010, Comstock has budgeted to drill 67 (49.5 net) wells in 2011. All of the wells will be horizontal wells. Comstock has budgeted to drill 45 (27.5 net) Hayneville or Bossier shale wells in North Louisiana. The remaining twenty-two (22.0 net) wells will be drilled to develop the Company's Eagle Ford shale leases which were acquired this year.

Taking into account the planned 2011 drilling and completion activity, Comstock expects production in 2011 to approximate 85 to 90 Bcfe, a substantial increase over production in 2010. The 2011 drilling program is also expected to provide another year of strong reserve growth in 2011. The Eagle Ford drilling program will focus on the oil and condensate portion of the Eagle Ford shale play which will allow the Company to grow its oil, condensate and natural gas liquids production in 2011.

Comstock has a substantial amount of flexibility in implementing its drilling program in 2011. During the first half of 2011, the Company can release two of its drilling rigs without penalty in addition to the one that the Company plans to release in the first quarter. Comstock can also move additional drilling rigs from its Haynesville shale program to its Eagle Ford shale program. This flexibility allows the Company to reduce its capital expenditures in response to weaker natural gas prices or reallocate its budget toward oil or liquids rich projects in response to continued strong oil prices in relation to natural gas prices.

The Company's early results in the Eagle Ford shale have been encouraging. Additional results from the recently drilled wells and future drilling will govern the timing of deploying additional drilling rigs to Comstock's South Texas operations.

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

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Hess Corporation (HES): Bakken Shale Update

2010-12-30T09:48:00.000-05:00

By Andrea: http://oilshalegas.com

Hess Corporation (HES) released an exciting operational update on the Bakken Shale located in North Dakota. It has completed the acquisition of 167,000 net acres in the Bakken oil shale play from TRZ Energy, LLC for $1,050 million in cash. The acquired properties are located near Hess' existing acreage and have current net production of approximately 4,400 boe/d.

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

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Leed County and Fayette County: Eagle Ford Shale Update

2010-12-28T12:21:00.000-05:00

By Andrea: http://oilshalegas.com

Evolution Petroleum Corp. (EPM) recently released an operational update on the Eagle Ford Shale, located in Leed and Fayette Counties. In response to a question inquiring about their involvement of the Eagle Ford to the Austin Chalk formation, CEO, Bob Herlin states:

"Eagle Ford is being tested by a variety of operators and what we preferred to be the stop list portion in the Giddings Field. Now with the – that we've heard activity up into Fayette County, where I know there’s some things going on the Leed County. There has been some test I believe further to northeast. I don't think industry is quite yet cracked the code on making Eagle Ford work that far to northeast.

Obviously, we hold a lot of acreage in the Giddings Field that is held by production or will be held by production, that's not on under current primary term or through expansions. Are there people lined up in my door warning to form out our Eagle Ford, right? No. But we – I can't say it will or it won’t down the road."

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

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Haskell County, OK: Woodford Shale Update

2010-12-28T12:07:00.003-05:00

By Andrea: http://oilshalegas.com

Evolution Petroleum Corp. (EPM) recently released an update on the Woodford shale located in Haskell County, Oklahoma:

"In Haskell County, which is where we have actually more potential, we initiated field operations on the first of two tests that we have planned for this fiscal year and this is a mid-depth Woodford in the 4 to 5000 foot depth range. We should have the initial results from the first well sometimes in this calendar year or in January."

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

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Comstock Resources (CRK): Eagle Ford Shale Update

2010-12-28T09:45:00.000-05:00

Southwestern Energy Co. (SWN): Marcellus Shale Update

2010-12-27T11:41:00.000-05:00

By Andrea: http://oilshalegas.com

Southwestern Energy Co. (SWN) recently released an operational update on their Marcellus Shale assets located in Pennsylvania:

In the Marcellus Shale play in Pennsylvania, the company plans to begin the year drilling with one operated rig and end the year with two operated rigs. Southwestern plans to participate in a total of 40 to 45 gross wells, all of which will be operated.

"We are currently operating one rig in the Marcellus Shale and will increase to two rigs by year-end 2011. As a result, our 2011 production is expected to be in a range of 465 to 475 Bcfe, which is an increase of approximately 18% compared to our expected 2010 levels."

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

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Southwestern Energy Co. (SWN): Fayetteville Shale Update

2010-12-27T11:34:00.000-05:00

By Andrea: http://oilshalegas.com

Southwestern Energy Co. (SWN) recently announced its planned capital investment program and guidance for 2011. The company's total capital investment program in 2011 is planned to be approximately $1.9 billion, attributing much of that to the Fayetteville Shale.

"Our large inventory of high-return wells in the Fayetteville Shale gives us the ability to have profitable growth in today's price environment and our economies of scale in the play enable us to enjoy one of the lowest cost structures in the industry. The continued focus on keeping our costs low and adding the maximum value for each dollar we invest are the keys to success in 2011," stated Steve Mueller, President and Chief Executive Officer of Southwestern Energy.

"Our 2011 capital investment program continues to be dominated by our position in the Fayetteville Shale. Our plan for the Fayetteville Shale during the year is to transition from earning our acreage position by drilling first wells in new sections and optimizing well spacing to more drilling on multi-well pads which will result in faster drilling times. We currently plan to start the year with 13 operated horizontal rigs in the Fayetteville Shale and exit the year drilling with 11 rigs...."
For more shale updates, visit: http://blackberrystocks.blogspot.com

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SM Energy Company (SM): Bakken Shale Update

2010-12-27T11:05:00.000-05:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently announced that they plan to invest roughly $170 million, or approximately 20% of its drilling capital, in 2011 on projects targeting the Bakken and Three Forks intervals in the Williston Basin. SM Energy plans to operate two (2) drilling rigs through the first half of next year, with the addition of a third rig planned at mid-year. Substantially all of this activity is expected to occur in McKenzie and Divide counties, North Dakota. Operations in McKenzie County will focus on the horizontal Bakken wells in the Company's Raven prospect area in the western portion of the county, with SM Energy operating approximately two-thirds of this activity. Activity in Divide County will target the Three Forks interval and will be entirely operated by the Company.

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

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SM Energy Company (SM): Eagle Ford Shale News

2010-12-27T10:44:00.000-05:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:

SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.

In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.

SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.

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

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PetroBakken Energy Ltd.: Cardium Shale Update

2010-12-27T10:31:00.000-05:00

By Andrea: http://oilshalegas.com

PetroBakken Energy Ltd. (PBN.TO) recently provided an update on results from their horizontal drilling program in the Cardium formation in Alberta at Pembina, Garrington, and Lochend.

PetroBakken's activity levels have continued to increase and they now operate 10 drilling rigs in the Cardium play with one full time completion crew and two other completion crews on an intermittent basis. With this operating configuration they will be able to accelerate completion and tie-in operations so that by the end of the first quarter of 2011 they expect to be on a normal operating cycle with approximately 10 to 12 wells waiting to be completed and brought on production at any time.

In the month of November, Petrobakken brought 8 (7.0 net) operated wells on production. Through the first sixteen days of December, they placed a further 8 (5.9 net) wells on production, and they anticipate that over the balance of December, they will add another 14 (12.2 net) operated wells. For November and December, they expect to bring a total of 30 (25.1 net) Cardium wells on production.

PetroBakken now has 11 operated wells completed with slick water fracture stimulations that have sufficient history to provide both 7 day and 30 day initial production data. The average initial 7 day production rate from the first 13 wells is 415 bopd, and the average initial 30 day production rate from their first 11 wells is 245 bopd. These results continue to meet their original expectations for productivity from Cardium horizontal wells, and they anticipate further improvements in productivity and capital efficiencies from their drilling and completions operations as they continue to refine their methodologies.

PetroBakken previously reported initial production data from the time that the well is put on production exclusive of the initial flowback or testing period. However, the oil produced from the initial flowback period is sales oil, and although these reported volumes are initially field estimates, once the volumes are reconciled with sales receipts these volumes are now included in their 7 day and 30 day initial production data. In the future, as pipeline projects evolve, PetroBakken expects to conserve more natural gas and natural gas liquids and include those volumes in the reported results.

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

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Skywest Energy Corp. (SKW.V): Cardium Shale Update

2010-12-27T10:20:00.000-05:00

By Andrea: http://oilshalegas.com

Skywest Energy Corp.(SKW.V) has recently entered into two new farm-in transactions to acquire an additional 8.5 gross (5.1 net) Cardium sections. The Company has also acquired an additional 4.25 Cardium sections at recent Crown land sales. As a result, the Company has added an additional 35 net Cardium drilling locations. Skywest will now hold approximately 40 net sections of Cardium acreage.

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

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Comstock Resources (CRK): Bossier Shale Update

2010-12-27T09:55:00.001-05:00

Montague County, TX: Barnett Shale Update

2010-12-27T09:42:00.000-05:00

By Andrea: http://oilshalegas.com

Topaz Resources, Inc. recently released an operational update on the Barnett Shale, located in Montague County, TX. In the update, they announced that they are completing the consolidation into Topaz of over 750 net acres in the oil leg of the Barnett Shale in Montague County in North Texas, which has 18 identifiable drill locations.

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

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Denton County, TX: Barnett Shale Update

2010-12-27T09:37:00.000-05:00

By Andrea: http://oilshalegas.com

In a recent operational update released by Topaz Resources, Inc., they announced that they are acquiring a lease of 85 acres in the Barnett Shale located in Denton County, TX. In addition, Topaz Resources will hold a 45% working interest in a horizontal Barnett Gas well, located in that acreage of the Barnett Shale.

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

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La Salle County, TX: Eagle Ford Shale Update

2010-12-26T10:43:00.000-05:00

Linn Energy (LINE): Permian Basin Update

2010-12-26T08:26:00.000-05:00

By Andrea: http://oilshalegas.com

During the fourth quarter of 2010, Linn Energy LLC (LINE) announced that they closed a bolt-on acquisition of Antrim Shale properties in Michigan and expects to close a bolt-on acquisition of Permian Basin properties by the end of the year. The combined contract price of both acquisitions totals approximately $90 million.

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

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Beckham County, OK: Granite Wash Update

2010-12-24T11:40:00.000-05:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently released an update on the Granite Wash, located in Beckham County, OK:

The company plans to invest $60 million in 2011 in horizontal wells targeting the Marmaton and Missourian washes (also collectively referred to as the Granite Wash) in Beckham County in western Oklahoma. Two (2) operated drilling rigs will be required next year to execute on this program. SM Energy will operate over 65% of this activity. The economics of these projects benefit from the contribution of higher BTU natural gas and condensate in the production stream.

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

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Divide County, ND: Bakken shale Update

2010-12-24T11:03:00.000-05:00

Williams Companies, Inc. (WMB): Bakken Shale Update

2010-12-24T09:54:00.000-05:00

By Andrea: http://oilshalegas.com

The Williams Companies, Inc. (WMB) recently released an operational update where it announced that it has completed a major purchase in North Dakota's Bakken oil play from private owners for $925 million cash. Williams announced the acquisition on Nov. 15.

In the transaction, Williams purchased 100 percent of the interests in Dakota-3 E&P Company LLC. Dakota-3 has approximately 85,800 net acres on the Fort Berthold Indian Reservation in the Williston Basin and 3,300 barrels per day of net oil production from 24 existing wells.

Williams' purchase has an effective date of Oct. 1, subject to standard closing adjustments. Williams is the new owner of Dakota-3, which will continue its existing contractual arrangement for services with the contract operator and field services provider after closing.

Currently, Dakota-3 has three rigs operating on its acreage. Williams expects to double the current level of drilling activity to six rigs by 2012, subject to permitting. Williams estimates that Dakota-3's holdings represent approximately 185 million barrels of oil equivalent in total net reserves potential in the Middle Bakken and the Upper Three Forks formations.

Williams' entry into the Bakken Shale play follows its entry into Pennsylvania's Marcellus Shale, where the company has accumulated approximately 100,000 net acres over the past year and a half.

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

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Reliable Energy Ltd. (REL): Bakken formation update

2010-12-24T09:48:00.000-05:00

By Andrea: http://oilshalegas.com

Reliable Energy Ltd. (REL) recently provided initial production results from the 5-34-11-29W1 horizontal well completed in the Bakken formation on its Kirkella property in Manitoba. Drilled from 4-27-11-29W1, the 5-34 well reached total depth on November 17th, 2010 and is comprised of a 1,200 meter horizontal lateral section that encountered excellent quality Bakken reservoir throughout. The well was completed using a multi stage frac system with a total of 15 stages being fracture stimulated. This is the first well in Reliable’s horizontal drilling program to be successfully completed in its entirety and placed on production. The well commenced production on December 3rd, 2010 and has been producing continuously since. During the clean-up phase of production, the oil cut has continuously increased to 35% while total fluid production has averaged 358 bbl/day. Over the last 24 hour period, the well has produced 125 bbls (94 bbls net) of light sweet oil. The well is expected to continue to clean up and stabilize over the next several weeks and the well has been set up as a single well battery until it can be tied into our central battery at our 14-10 site.

The Company has drilled a total of 5 (4.3 net) horizontal wells to date on its Kirkella and Elkhorn properties in Manitoba. As previously announced, the Company has experienced significant issues in accessing the equipment and services necessary to complete these wells, however the Company is working closely with the frac companies to ensure availability of services in the new year. Two wells, 5-15-11-29W1 and 6-15-11- 29W1, have been partially completed and are still awaiting the conclusion of their respective frac programs. These wells are currently on production test while awaiting frac equipment. The first well, 6-15, has had eight of twenty planned fracs completed and has been on production since November 9. In December, the well has produced an average of 75 BOPD (net). The company expects the final results of the 6-15 well to be similar to the 5-34 well. The 5-15 well has just been placed on production and is currently in the initial clean-up phase of production. Further results of these production tests on the 5-15 and 6-15 wells will be released upon the completion of the frac programs. Reliable has 2 (1.5 net) wells currently awaiting commencement of their frac programs. These wells, the 6-34-11-29W1 and the 10-8-11-28W1 horizontals at Kirkella and Elkhorn respectively, are not expected to be completed and on production until January 2011.

Corporate production is currently at 600 bbls of oil per day. Based on results of the 5-34 well, management believes that there is a further minimum of 300 bbls of oil per day (net) behind pipe and awaiting completion. Reliable does not expect to have any more wells frac’d and completed prior to year end due to lack of equipment and services and, accordingly, has revised downwards its year end exit rate to 600 bbls of oil per day. Murray Swanson, President and CEO stated that ”while we are disappointed that we have been unable to complete all five horizontal wells drilled this year because of equipment availability, we are extremely encouraged by the results from the 5-34 well, which has exceeded initial expectations. Furthermore, the test results from the 5-15 and 6-15 wells indicate that once they have been completed in their entirety that we will achieve our planned production levels for these respective wells.”

Reliable has identified 142 prospective horizontal drilling locations in the Kirkella area in the Bakken and is continuing to add to this total through ongoing exploration.

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SandRidge Energy, Inc. (SD): Permian Basin Update

2010-12-24T09:20:00.000-05:00

By Andrea: http://oilshalegas.com

SandRidge Energy, Inc. (SD) recently announced that it has sold its Bone Spring asset package for $110 million, approximately $2,750 per acre. At closing, SandRidge received cash proceeds of $88 million. An additional $22 million was placed in escrow to be released to SandRidge in the first quarter of 2011, subject to satisfaction of customary post-closing conditions. The Bone Spring package includes approximately 40,000 net acres in the Permian Basin with development potential in the Avalon Shale and Bone Spring reservoirs. There is no production or proved reserves associated with these assets, and SandRidge will retain all rights above and below the Avalon Shale and Bone Spring formations. Proceeds from this transaction will be used to fund a portion of SandRidge’s planned capital expenditures in 2011.
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Colorado County, TX: Austin Chalk Update

2010-12-24T09:13:00.000-05:00

By Andrea: http://oilshalegas.com

Burleson Energy Limited (BUR) recently announced that they will complete the D.Truchard #1 well for production following electric logging. D.Truchard #1 is an appraisal well part of the Austin Chalk formation located in the Heintschel field in Colorado County, Texas. Evaluation of the well is continuing, however, the early logs indicated that hydrocarbons are present in over 300 feet (~90 metres) of the target Prairie Bell Wilcox sands and that there are several zones of interest above and below the Prairie Bell.

Further evaluation is required to confirm the early results but based on the initial log interpretation there are no gas/water contacts evident throughout the major reservoir sand package. Also, analysis suggests that the sands encountered in D.Truchard #1 are at a higher stratigraphic level than the Heintschel #1 well and also structurally higher than the pre drill prognosis. These are all positive indications for the performance of the well.

The D.Truchard #1 well is located ~3km from the Heintschel # 1 gas condensate discovery made earlier in 2010. D.Truchard #1was drilled to a total depth of 12,000 feet (3658m) and gas shows were recorded while drilling the lower part of the hole.

Evaluation of the well continues, following which it will be cased and cemented and will then await completion, fracture stimulation (fraccing) and flow testing.

Fraccing contractors have been booked for the last week in January to complete the
fraccing of both this well and the upcoming Heintschel #2 well.

After production casing has been set, the drilling rig will move directly from the D.Truchard #1 drilling location to the Heintschel #2 drill site. The Heintschel #2 well is the second well in the program and has been designed as an immediate offset well to Heintschel #1.

Burleson Energy Managing Director, Michael Sandy said “While it is still early days the initial results for D.Truchard #1 are very encouraging”.

”The pre drill plan for the well had dual aims, firstly to appraise the overall Heintschel structure as a step towards confirming mid to high case gas and condensate volumes (see our latest presentation), and secondly to provide another source of additional production and cash flow for BUR and partners. Currently the Brasher #1 and Heintschel #1 wells are on production and the Joann #1 well is to be brought on production in the near future.

“A successful flow test following fraccing in late January will indicate that these aims have been achieved.

“The rig will now be moved to drill Heintschel #2 which also has dual aims – to be in a position to be able book proven and probable reserves for the area of the two Heintschel wells, and to provide yet another source of production and cash flow for Burleson Energy.”

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Avoyelles Parish, LA: Austin Chalk Formation Update

2010-12-24T08:36:00.000-05:00

By Andrea: http://oilshalegas.com

Pryme Oil and Gas Limited released an operational update announcing the delay of acidizing of Deshotels 20-H No. 1 well located in the Austin Chalk Formation of Avoyelles Parish, LA.

As a result of a pre-Christmas increase in the demand for oil field services, the contractor which has been engaged to acidize the perforated intervals in the horizontal leg of the Deshotels 20-H No.1 has been unable to attend to the job as scheduled. It is now expected that the acidizing will be carried out after Christmas. Flow testing of the well will follow the acidizing.

As discussed in previous announcements, it is expected that the Deshotels 20-H No.1 well will primarily produce oil. However, it is also expected that commercial quantities of natural gas will be produced. Trenching and laying of the flow line from the well to the natural gas sales line, a distance of approximately 4 miles, is underway.

Pryme has a 40% working interest (30% net revenue interest (NRI)) in this well.

The Deshotels 20-H No.1 well, in Pryme's Turner Bayou Chalk project in the North Bayou Jack Field, is the first deep well to be drilled within the Turner Bayou 3D seismic survey. The well has been drilled to a depth of 16,400 feet (5,000 metres) vertically with a 3,755 feet (1,144 metre) horizontal leg through the Austin Chalk formation which is predominantly oil bearing in this region. The well location was confirmed using high resolution 3D seismic data from a survey carried out in 2007 and data from surrounding well bores.

Turner Bayou is one of Pryme's high value projects. It is located in Avoyelles Parish, Louisiana. Pryme has a 40% interest in the Turner Bayou Chalk project area, which is contained within the Turner Bayou 3D seismic survey, and a 52% interest in the balance of Turner Bayou. The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are contained within six prospective formations ranging in depth from the Frio formation at 3,000 feet, to the Tuscaloosa formation at 18,000 feet.

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Linn Energy (LINE): Antrim Shale Update

2010-12-24T08:26:00.000-05:00

Tyler County, WV: Marcellus Shale Update

2010-12-23T14:20:00.000-05:00

By Andrea: http://oilshalegas.com

Magnum Hunter Resources Corp. (MHR) recently announced the completion of its first well drilled in the Marcellus Shale, located in Tyler County, West Virginia. The well is the Weese Hunter #1001.

Alpha Hunter Drilling, a wholly owned subsidiary of Magnum Hunter, spud the Weese Hunter #1001 in late July 2010 and reached vertical total depth of approximately 6,510 feet in mid August 2010. A third party drilling rig commenced the horizontal leg in mid September 2010 and reached a horizontal length of approximately 4,028 feet. Total measured depth for the Weese Hunter #1001 is approximately 10,388 feet. A twelve stage frac job was successfully completed in December. The Weese Hunter #1001 well recently tested at an initial production rate ("IP") of 7.0 MMcfe per day with flowing tubing pressures of 2350 psi on a 22/64 inch choke. The British Thermal Unit ("BTU") content of the well was measured at approximately 1,225. The Weese Hunter #1001 began producing yesterday into the recently completed Eureka Hunter pipeline system. The currently estimated economic ultimate recovery ("EUR") for the Weese Hunter #1001 is estimated by the Company's in-house reservoir engineers to be approximately 4 Bcfe. Magnum Hunter's wholly-owned subsidiary, Triad Hunter, LLC, is the operator of this well and owns a 100% working interest with a 84.3% net revenue interest.

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Susquehanna County, PA: Marcellus Shale Update

2010-12-23T14:07:00.000-05:00

By Andrea: http://oilshalegas.com

Williams Partners L.P. (WPZ) announced that it has completed the acquisition of Cabot Oil & Gas Corporation's (COG) midstream assets in the Marcellus Shale located Susquehanna County, Pa., for $150 million.

The assets include approximately 75 miles of gathering pipelines and two compressor stations that are currently gathering approximately 230-240 million cubic feet per day (MMcf/d) of Cabot's natural gas production.

The partnership has also agreed to a new long-term dedicated gathering agreement with Cabot for its production in the northeast Pennsylvania area of the Marcellus Shale. The 25-year agreement covers an area of mutual interest that currently includes approximately 138,000 net acres.

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Petrohawk Energy Corp. (HK): Fayettevill Shale Update

2010-12-23T13:36:00.000-05:00

By Andrea: http://oilshalegas.com

Petrohawk Energy Corp. (HK) recently released an operational update on the Fayetteville Shale located in Cleburne and Van Buren County, Arkansas. Petrohawk has completed the sale of it's Fayetteville natural gas assets to XTO Energy Inc., for $575 million. The sale has an effective date of October 1, 2010.

In addition, the Company has entered into a definitive agreement with XTO Energy to sell its midstream assets in the Fayetteville Shale for $75 million. The portion of the transaction involving the midstream assets is expected to close in early 2011 and is subject to regulatory approval and customary closing conditions.

As of December 31, 2009, Petrohawk had estimated proved reserves in the Fayetteville Shale of approximately 299 billion cubic feet of natural gas (Bcf). Current production is approximately 98 million cubic feet of natural gas equivalent per day (Mmcfe/d).

Bank of America Merrill Lynch acted as marketing and financial advisor to Petrohawk in connection with both transactions.

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Webb County, TX: Eagle Ford Shale Update

2010-12-22T14:22:00.000-05:00

By Andrea: http://oilshalegas.com

Regency Energy Partners (RGNC) recently announced a series of expansion projects along its rich gas gathering system in south Texas to meet increasing producer demand in the Eagle Ford Shale. Upon completion, these projects will provide an incremental 200 MMcf/d of capacity for the south Texas gathering system, allowing Regency to provide its customers with more robust gathering services.

"Regency's rich gas volumes in the south Texas region continue to ramp up and we have been aggressive in our plans to offer increased midstream services in the Eagle Ford Shale," said Mike Bradley, president and chief executive officer of Regency:

"Our current expansion projects position Regency for additional growth opportunities and will improve the operational efficiencies of our south Texas gathering system in this prolific shale play."

The expansions include:

The construction of a 45-mile pipeline to loop a portion of the existing south Texas gathering system from western Webb County, Texas, to new facilities near I-35;

The installation of 20,000 horsepower of compression;

The installation of an additional 200 MMcf/d of dehydration capacity; and

An additional 1,500 Bbl/d of stabilizer capacity.

The capital expenditures related to these expansions are already included in Regency's previously disclosed 2010 organic growth capital budget of $259 million and will be funded under its revolving credit facility. The expansion projects are scheduled to be completed in May 2011.

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Comstock Resources (CRK): Eagle Ford, Bossier and Haynesville Shale Update

2010-12-22T14:16:00.000-05:00

By Andrea: http://oilshalegas.com

Comstock Resources, Inc. (CRK) recently released announced that it plans to spend approximately $522.0 million in 2011 for development and exploration activities. The 2011 drilling program will focus on the continued development and delineation of its Haynesville shale and Bossier shale properties in North Louisiana and its Eagle Ford shale properties in South Texas. Comstock is currently utilizing six operated drilling rigs for its drilling activity. Five of the rigs are currently drilling Haynesville or Bossier shale wells and one is currently drilling the Company's fourth Eagle Ford shale well. Comstock plans to release one of these rigs during the first quarter of 2011 and plans on moving one of the Haynesville shale rigs to the Eagle Ford by the middle of 2011.

The 2011 budget includes $110.2 million for completion costs for 25 (21.6 net) Haynesville or Bossier shale wells that were drilled in 2010 but will be carried into 2011 for completion by the Company's dedicated frac crew which will be under contract for 2011. In addition to completing the 25 wells drilled in 2010, Comstock has budgeted to drill 67 (49.5 net) wells in 2011. All of the wells will be horizontal wells. Comstock has budgeted to drill 45 (27.5 net) Hayneville or Bossier shale wells in North Louisiana. The remaining twenty-two (22.0 net) wells will be drilled to develop the Company's Eagle Ford shale leases which were acquired this year.

Taking into account the planned 2011 drilling and completion activity, Comstock expects production in 2011 to approximate 85 to 90 Bcfe, a substantial increase over production in 2010. The 2011 drilling program is also expected to provide another year of strong reserve growth in 2011. The Eagle Ford drilling program will focus on the oil and condensate portion of the Eagle Ford shale play which will allow the Company to grow its oil, condensate and natural gas liquids production in 2011.

Comstock has a substantial amount of flexibility in implementing its drilling program in 2011. During the first half of 2011, the Company can release two of its drilling rigs without penalty in addition to the one that the Company plans to release in the first quarter. Comstock can also move additional drilling rigs from its Haynesville shale program to its Eagle Ford shale program. This flexibility allows the Company to reduce its capital expenditures in response to weaker natural gas prices or reallocate its budget toward oil or liquids rich projects in response to continued strong oil prices in relation to natural gas prices.

The Company's early results in the Eagle Ford shale have been encouraging. Additional results from the recently drilled wells and future drilling will govern the timing of deploying additional drilling rigs to Comstock's South Texas operations.

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Karnes County, Texas: Eagle Ford Pipeline

2010-12-22T13:44:00.000-05:00

By Andrea: http://oilshalegas.com

Koch Pipeline Company, L.P. recently announced that they will create the capacity to move an additional 120,000 barrels per day of Eagle Ford crude in late 2012. Koch Pipeline today received final shareholder approval to build a new pipeline into Karnes County, Texas.

“This will be our most extensive project to date to connect Eagle Ford producers with refineries in Corpus Christi,” said Kim Penner, president of Koch Pipeline. “It not only allows us to ship more crude oil to Corpus Christi refiners and to the Flint Hills Resources waterborne terminal at Ingleside, but it also improves our efficiency and reliability as this project includes new tanks and a new truck station.”

The new 16-inch line will have future expansion capability of more than 200,000 barrels per day and include direct pipeline connections to producer tank batteries in Karnes and DeWitt counties. A new station, likely near Helena, will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.

Brad Urban, senior vice president of supply for Koch Pipeline’s affiliate Flint Hills Resources, said:

“This project fits well with our plan to process a large volume of South Texas crude oil and condensate at our Corpus Christi refinery as well as move a large volume of those products via the water. We continue to evaluate projects to enhance our Corpus Christi refinery processing capability and believe the majority of what we will refine in the future will be South Texas domestic crude oil and condensate.”

By the end of 2011, Koch Pipeline will have added 10 to 15 new employees and completed several other projects that add more than 140,000 barrels per day of new pipeline capacity in South Texas. The company is the largest transporter of South Texas crude oil. Engineering for the new pipeline to connect Eagle Ford producers to Corpus Christi, Texas, has begun. Construction, which will require numerous contractors, is expected once project permits are received.

“We are evaluating several other major pipeline projects in South Texas in addition to this one, including a project to connect producers in Western counties such as Dimmit and LaSalle,” Penner said. “We are working with producers and our affiliate Flint Hills Resources to ensure producers have transportation to markets for the rapid
growth of crude oil production projected in South Texas.”

Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capafrom Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the
western counties of the Eagle Ford trend. Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.

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Texon Petro Ltd. (TEXOF.PK): Eagle Ford Shale Update

2010-12-22T13:33:00.000-05:00

By Andrea: http://oilshalegas.com

Texon Petro Ltd. (TEXOF.PK) recently announced that it has finished drilling and casing its second Eagle Ford well (Teal EFS #1H). Strong oil and gas shows were observed throughout the 4,500ft of horizontal drilling within the Eagle Ford reservoir similar to the oil and gas shows in the first Eagle Ford well that has just been tested. Production casing has been run in preparation for the fracture stimulation
which has been contracted and is expected to begin in March. After this work has been
completed, the well will be production tested.

Log analysis indicates that the reservoir characteristics (porosity, permeability and oil and gas content) in the Eagle Ford in this second well (Teal EFS #1H) are similar to the reservoir properties of the Eagle Ford in recently tested Tyler Ranch EFS #1H located 5 km to the Northeast and which flowed 1,200 bopd.

There are now three wells which have flowed substantial quantities of oil from the Eagle Ford in and around Texon’s Leighton, Mosman, Rockingham and Sutton leases (“LMRS”). These wells are shown on the map i.e. Texon’s first Eagle Ford well which flowed 1,200 bopd and two Swift wells which flowed respectively 1,134 bopd and 775 bopd. These results indicate that the Eagle Ford in Texon’s LMRS leases is in a liquids rich area.

Texon has a 100% Working Interest (75% net revenue interest) in the Teal EFS #1H well.

Texon has an overall 92% Working Interest in approximately 5,000 gross acres in the LMRS leases which surround or are nearby to Texon’s first Eagle Ford well. The Eagle Ford reservoir is expected to be present throughout these leases.

Texon’s nett Eagle Ford acreage holding is 4,550 acres which could represent a resource potential of some 30-34 mmboe as to the Company’s working interest or 23–26 mmboe as to Texon’s net revenue interest in these leases.

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Enterprise Product Partners (EPD) and Chesapeake Energy Corp (CHK): Eagle Ford Shale Update

2010-12-22T13:24:00.000-05:00

By Andrea: http://oilshalegas.com

Enterprise Products Partners L.P. (EPD) recently announced that they recently entered into a 10-year agreement with Chesapeake Energy Corp. (CHK) to handle a large portion of their natural gas production in the Eagle Ford Shale:

Chesapeake's gross acreage position currently comprises more than 625,000 acres in and around the oil and natural gas liquids - rich areas of the Eagle Ford Shale across Dimmit, LaSalle, McMullen, Webb, and Zavala counties located in South Texas. The agreements provide Chesapeake with a comprehensive package of midstream natural gas and NGL services, including firm commitments for gas transportation, processing, and NGL transportation and fractionation services.

"We are extremely pleased with our new agreements with Chesapeake, which represent one of the largest single producer commitments to date for Enterprise in the Eagle Ford Shale," said Michael A. Creel, Enterprise's president and chief executive officer. "The deal with Chesapeake marks the fifth major midstream transaction Enterprise has executed with Eagle Ford Shale producers in the past year, reflecting the strategic importance of our integrated and expanding assets serving the various demands of producers in the prolific region."

Enterprise has previously announced long-term commitments with Petrohawk, EOG, Anadarko and Pioneer.

Chesapeake's NGL-rich natural gas will initially be gathered and compressed by Chesapeake affiliate, Chesapeake Midstream Development, LLC, for delivery to a central location. Enterprise will then transport and process the NGL-rich gas at its existing facilities while a previously announced natural gas processing plant that is currently under development in Texas is completed. This cryogenic processing facility, expected to be completed early in 2012, is designed for an initial capacity of 600 million cubic feet per day (MMcf/d) and with an initial capability to extract as many as 75,000 barrels per day (BPD) of NGLs.

The NGL production from Chesapeake's gas will ultimately be transported on Enterprise's previously announced 127-mile NGL pipeline that will extend from the new gas processing plant to Enterprise's NGL fractionation complex in Mont Belvieu, Texas. This new NGL pipeline, also scheduled for completion in early 2012, is expected to have an initial capacity of more than 85,000 BPD and would be readily expandable to over 120,000 BPD.

Activity in the Eagle Ford Shale continues to increase as approximately 115 rigs working in the play have drilled more than 330 wells completed to date. Total current production from the play is estimated at approximately 425 MMcf/d of natural gas and 35,000 BPD of crude oil and condensate.

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SM Energy Company (SM): Haynesville Shale Update

2010-12-22T11:49:00.000-05:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently released an operational update on the Haynesville shale, located in East Texas:

Approximately $35 million is budgeted for Haynesville shale activity in 2011. SM Energy has budgeted five (5) gross operated horizontal wells for 2011, of which the majority of costs will be carried under the previously announced carry and earning agreement covering a portion of our acreage position in East Texas. The Company will also participate in approximately 20 gross (approximately 2 net) partner-operated horizontal wells next year.

SM Energy is currently exploring a number of options for its operated Haynesville shale acreage position in East Texas which would allow the Company to drill enough wells in 2011 and early 2012 to hold its existing acreage while minimizing the amount of capital deployed. Twelve (12) gross wells in 2011 in addition to the operated wells discussed above and eight (8) gross wells in 2012 would need to be drilled to hold the Company's acreage position. The Company has approximately 22,000 net acres in the Shelby Trough in East Texas that is prospective for both the Haynesville and Bossier shales as well as other productive zones up hole.

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SM Energy Company (SM): Permian Basin Update

2010-12-22T11:44:00.000-05:00

By Andrea: http://oilshalegas.com

SM Energy Company (SM) recently announced that it plans to spend $40 million in the Permian Basin, with approximately $20 million expected to be invested in Wolfberry wells in 2011. The majority of this program will be operated by an outside partner. The remaining Permian Basin budget will be allocated to various other plays in the basin.

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SM Energy Company (SM): Granite Wash Update

2010-12-22T11:39:00.000-05:00

McKenzie County, ND: Bakken Shale Update

2010-12-22T11:03:00.000-05:00

Webb County, TX: Eagle Ford Shale Update

2010-12-22T10:42:00.000-05:00

Eagle Ford Shale Pipeline

2010-12-22T10:33:00.000-05:00

By Andrea: http://oilshalegas.com

Targa Resources Partners LP (NGLS) recently reported that they will be developing a pipeline to transport natural gas in the Eagle Ford Shale to Mont Belvieu, Texas. They signed a non-binding Memorandum of Understanding with TexStar Mistream Services, LP and TEAK Midstream, LLC for the development of the new pipeline:

Upon consummation of the transaction, Targa Resources Partners would expect to become an owner in the new y-grade pipeline that would provide transportation services from natural gas processing plants in the Eagle Ford shale area, including a TEAK gas plant and a TexStar gas plant, into Mont Belvieu, Texas. The new y-grade pipeline would be designed to provide additional capacity to customers in the Eagle Ford shale area. Additionally, the y-grade pipeline would be designed to accommodate a future extension into the Permian Basin area of West Texas to provide y-grade transportation services to that growth region.

CBF would be expected to expand by 100,000 barrels per day, with commencement of operations expected in late 2012. The 100,000 barrel per day expansion would be an addition to the current 78,000 barrel per day expansion at CBF, which is expected to be operational in the second quarter of 2011. Upon the completion of both expansions, the y-grade fractionation capacity of CBF would be approximately 353,000 barrels per day.

TEAK would be expected to install and operate a new cryogenic natural gas processing plant with approximately 200 MMcf per day of processing capacity and TexStar would be expected to install and operate a new cryogenic natural gas processing plant with approximately 300 MMcf per day of processing capacity. TEAK and TexStar would expand existing gas gathering systems that supply the new natural gas processing plants. The two plants would be expected to produce approximately 50,000 barrels per day of y-grade. Combined, the two processing plants and the gathering systems behind them would serve twelve counties in the liquids rich Eagle Ford shale of South Texas.

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