Oil Discovery in Texas 2012 - Apache (APA)

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Moore County, Texas - Oil and Natural Gas Field

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Potter County, Texas - Oil and Natural Gas Field

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Oldham County, Texas - Oil and Natural Gas Field

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Harley County, Texas - Oil and Natural Gas Field

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Whittenburg Basin Play - Granite Wash - Texas

By Tim - http://oilshalegas.com

Apache (APA) recently came out and discussed a new emerging oil play in the Granite Wash area. This formation is called the Whittenburg Basin Play and is located in the Texas Panhandle.

Apache Corporation (NYSE, Nasdaq: APA) today reported encouraging results in its exploratory drilling program in the emerging Whittenburg Basin play in the Texas Panhandle. Five of six initial vertical tests were completed as oil producers in the Canyon Wash interval.

Apache has leased or purchased approximately 96,000 net acres in the Bivins Ranch area, a 200-square-mile block in Hartley, Oldham, Potter and Moore counties, and operates all leases, most with 73.5-percent working interests. The block is immediately south of the prolific Panhandle Dolomite field and north of two 25-well Canyon Wash fields.

The Bivins Ranch acreage play is part of Apache's stepped-up program to explore in underdeveloped areas — beyond existing operations — that can benefit from Apache's technical expertise and financial capacity. Prior to Apache's recent activity, just 21 wells were drilled on the block, which is located about 100 miles west of Apache's Anadarko Basin properties.

"We are very encouraged that our early results support our geological model. We plan to expand our exploratory program using newly acquired 3-D seismic," said Robert Johnston, Apache's Central Region vice president. "Advances in horizontal drilling and multi-stage fracture stimulations have greatly improved the economics of drilling in oil and liquids-rich formations across western Oklahoma and the Texas Panhandle; the wells we have drilled thus far in the Bivins Ranch area have all the ingredients to suggest that these techniques may generate even greater productivity.

"We are eager to continue to test the acreage, and we plan to commence horizontal development drilling in mid-2012," Johnston said.

Apache's new producing wells in the Bivins Ranch area include:

• The Bivins-LIT 3-2 averaged 1,001 barrels of oil and 839 thousand cubic feet (Mcf) per day from 80 feet of pay during the first 30 days of production.
• The Bivins-LIT 28-2 averaged 315 barrels of oil and 123 Mcf from 140 feet of pay for the first 30 days of production.
• The Bivins-LIT 115-1 averaged 175 barrels of oil and 97 Mcf from 231 feet of net pay for the first 30 days of production.
• The recently completed Bivins-LIT 4-3 has been on production less than a week; it is currently producing 137 barrels of oil and 105 Mcf of gas from 150 feet of pay.
• The Bivins-West 219-2 has averaged 107 barrels of oil and 42 Mcf per day from 50 feet of pay during the first 21 days of production.

Apache's initial drilling locations were developed using a 64-square-mile 3-D seismic survey. Apache recently completed a 244-square-mile 3-D survey over the remainder of the acreage with final processing expected in the first quarter. Ten additional wells are scheduled during 2012.

http://blackberrystocks.blogspot.com/

http://investor.apachecorp.com/releasedetail.cfm?ReleaseID=649195

Forest Oil Corp. (FSP)- Granite Wash Update

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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Beckham County, OK: Granite Wash Update

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

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

SM Energy Company (SM): Granite Wash Update

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

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

Linn Energy Corp, LLC (LINE) Granite Wash Well

By Andrea: http://oilshalegas.com

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

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

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

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

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

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

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

Devon Energy Corp. (DVN): Granite Wash Update

By Andrea: http://oilshalegas.com

Devon Energy Corp. (DVN) is stepping up their position in the Granite Wash and plans to drill 16 Granite Wash wells by the end of 2010. President and CEO John Richels reports:

"Although we have not talked much about our Granite Wash position in the past, we delivered some very encouraging results there during the second quarter. We brought two Devon-operated Granite Wash wells online with an average 24-hour IP of 29 million cubic feet equivalent per day, including 585 barrels of oil or condensate and 1,330 barrels of NGLs. With the recent success in both the Cherokee and Granite Wash A sands, we are stepping up our activity in the area. We currently have two rigs running in the play and plan to add a third rig that we will move from the Barnett later this month. We have an inventory of about 150 Cherokee and Granite Wash A locations and 200 additional undrilled locations and other Granite Wash formations. Since we hold our position in the Granite Wash with existing production, we are under no pressure to drill. However, given the attractive rate of returns generated by these wells in this environment, we are reallocating capital to this play. We now plan to drill 16 Granite Wash wells this year."

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

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Linn Energy Corp, LLC (LINE) Granite Wash Well

By Andrea: http://oilshalegas.com

Linn Energy, LLC (LINE) announced today that the Black 50-1H Granite Wash well that was drilled earlier this year produced a whopping 60.2 MMcfe per day:

The Company owns a 63 percent working interest in the Black 50-1H well, which tested at a 24-hour production rate of 27.0 MMcf/d of natural gas and 3,190 Bbls/d of condensate at 2,150 psi flowing surface pressure. The natural gas production has a heating value of 1,316 Btu/cf, and when processed, should yield approximately 3,530 Bbls/d of natural gas liquids. Including estimated NGL recoveries and shrinkage associated with processing the natural gas, the Black 50-1H well produced approximately 60.2 MMcfe/d.

"The outstanding results from this second well are considerably above what we expected. We believe this is the highest rate well reported in the Granite Wash trend. The liquids content of over 6,700 Bbls/d represents more than 65 percent of the production stream and we anticipate pay-out on this well in as little as two months. The well is located in an area where LINN has a large concentrated acreage position. As a result, there are numerous follow-up drilling opportunities," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. "Our operating team has continued to drill horizontal Granite Wash wells in less drilling days and at lower costs than expected. The Granite Wash area is a major component of our drilling program and is expected to provide significant organic growth for the Company."


Back in March of 2008, Chesapeake Energy (NYSE: CHK) unveiled its monster Haynesville shale play, with CEO Aubrey McClendon dubbing the press release "the most important operational announcement in Chesapeake's 19-year history." Two other plays -- the Colony Granite Wash and the Mountain Front Granite Wash -- were introduced that day, but they didn't exactly share the spotlight.

In Chesapeake's second-quarter 2009 operational update, the company identified its Colony Granite Wash and Texas Panhandle Granite Wash plays as "the two highest rate-of-return plays in the company." In the third-quarter report, the company estimated the Colony's internal rate of return at 141%, based on selling the natural gas at $7 and the oil at $70. Chesapeake also spoke excitedly about its wash plays at the annual investor day, and began talking about its "Big 4 plus 1," putting its Greater Wash plays on the same pedestal as the treasured shale plays that European giants BP (NYSE: BP), Statoil, andTotal have so eagerly farmed into.

Despite all this promotion by Chesapeake, the buzz surrounding these plays remained pretty minimal. After almost two years, it seems that wash plays are finally beginning to elicit major enthusiasm. It's hard not to be excited about these wells, based on Forest Oil's (NYSE: FST) latest results. The company just announced its latest two Texas Panhandle wash wells, both of which produced at very large initial 24-hour rates. I won't repeat the numbers, because I don't support the industry practice of hyping rates that are known to decline sharply and immediately. Suffice it to say that they beat the eye-popping Haynesville shale results reported by Devon Energy (NYSE: DVN) in November.

The economics of the wash plays do not lie solely in their productivity. These wells, drilled horizontally through tight rock, have a strong liquids component, which makes them more valuable than a straight gas well. By liquids, I mean crude oil, condensate, and natural gas liquids (NGLs) like butane -- all of which are tied more closely to oil prices than natural gas prices. Some wash wells, like Newfield Exploration's (NYSE: NFX) McCoy 27-8H, initially kick out more than 1,000 barrels of NGLs per day. Penn Virginia (NYSE: PVA) says that some even produce more than 1,000 barrels of oil daily.

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

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