Johnson County, Texas: Barnett Shale Update

By Andrea: http://oilshalegas.com

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

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

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

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

Exxon Mobil XOM to buy XTO Energy Inc.

Today, Exxon Mobile Corporation (XOM) has come out announced an agreement to acquire XTO Energy Inc (XTO) in an all stock deal for $41 billion.

From the Exxon Mobil Press Release:

Exxon Mobil Corporation (NYSE: XOM) and XTO Energy Inc. announced today an all-stock transaction valued at $41 billion. The agreement, which is subject to XTO stockholder approval and regulatory clearance, will enhance ExxonMobil’s position in the development of unconventional natural gas and oil resources.

Under the terms of the agreement, approved by the boards of directors of both companies, ExxonMobil has agreed to issue 0.7098 common shares for each common share of XTO. This represents a 25 percent premium to XTO stockholders. The transaction value includes $10 billion of existing XTO debt and is based on the closing share prices of ExxonMobil and XTO on December 11, 2009. Full Article

XTO Energy Inc Operates in the following shale plays in the USA


Haynesville shale

Marcellus shale

Bakken shale

Fayetteville shale

Woodford shale


Who's the next takeout candidate?

Chesapeake Energy Corporation (CHK)
Devon Energy Corporation (DVN)
EOG Resources, Inc. (EOG)
Continental Resources Inc. (CLR)
Brigham Exploration Co. (BEXP)
Southwestern Energy Co. (SWN)
Forest Oil Corp. (FST)
Petrohawk Energy Corporation (HK)


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Haynesville Shale: XTO Energy 2009 Panola County

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

From Seeking Alpa

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

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

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

http://blackberrystocks.blogspot.com

Bakken Shale: XTO Energy Oil Three Forks 11/05/08

One of XTO's Bakken Shale wells of producing 1750 barrels of Oil per day in the Three Forks / Sanish area. This is an amazing discovery!

XTO Energy Inc. (NYSE: XTO) announced today production results from wells drilled in multiple regions on its newly acquired property base. In the Bakken Shale play of North Dakota, the Company has now completed 5 wells with average production rates of 673 barrels of oil equivalent per day, primarily producing from the Middle Bakken shale section. In addition, a Three Forks/Sanish discovery well, the DeAngelis 41x-21, has been completed at an initial production rate of 1,750 barrels of oil equivalent, at a flowing tubing pressure of 2,200 pounds.
XTO currently operates four drilling rigs in this prolific oil basin and owns a leasehold position with over 450,000 acres.

In the Fayetteville Shale, where XTO has expanded its leasehold to 380,000 acres, the Company has recently drilled and completed 5 wells, with 4,000 feet lateral sections, at an average daily rate of 2.5 MMcf. In the Woodford Shale region, on newly acquired acreage, the Churchill 1-26 well is completed and producing 4.3 MMcf per day.

In the Farrar/Bear Grass Field of the Freestone Trend, the Beddingfield 6H, a horizontal Cotton Valley lime well, was recently completed at 8 MMcf per day. This well offsets producing leases, totaling about 5,500 acres, acquired in the Hunt Petroleum transaction where drilling activity will commence in early 2009. Also, XTO has spudded its first two horizontal Haynesville Shale wells on acquired leasehold in its Eastern Region. Finally, in its offshore producing region of the Gulf Coast, XTO has completed and tested the Main Pass 125-2 well, one of several identified development prospects, at an initial daily rate of 17 MMcf and 500 barrels of oil.

http://phx.corporate-ir.net/phoenix.zhtml?c=97780&p=irol-newsArticle&ID=1222303&highlight=

XTO Energy CFO Sells Stock

Independent oil and gas producer XTO Energy Inc.'s executive vice president and chief financial officer Louis Baldwin has sold 535,700 shares of the company’s common stock.

It hasn't been certain whether this was involuntary like last weeks dumping by Chesapeake Energy's CEO.

XTO Energy is very active in the Marcellus Shale, Bakken Shale, and Haynesville Shale

http://finance.yahoo.com/q/it?s=XTO

Haynesville Shale Expo - Novermber 21st - 11/21 - Shreveport Convention Center

There will be a Haynesville Shale Expo located at the Shreveport Convention Center on 11/21/08. This Expo will educate the public on the impact of the natural gas industry and how it benefits people living in the Haynesville Shale area.

The free Expo is being presented by Chesapeake Energy, Devon Energy, EnCana Energy, Petrohawk Energy and XTO Energy and the Times. The chambers of commerce within the shale area will be hosts for the event, which is expected to attract thousands from northwest Louisiana and East Texas.

Full Article Here

XTO Energy: Freestone County, Texas Drilling Report

XTO is set to drill in Freestone County, TX Texas.

XTO Energy will drill five wells. Teague (Cotton Valley-Bossier Consolidated) Field will see Irvin GU Well 13 and Dunlap GU 2 Well 10 drilled to 13,200 feet. Dunlap GU 2 Well 5 will be drilled to 13,300 feet. No. 13 will be in Jessup I Survey A-335, 2.9 miles east of Teague. No. 10 will be in Cabler FP Survey A-114, 2.2 miles southwest of Fairfield. No. 5 will be in same, 2.7 miles southwest of Fairfield. Freestone (Cotton Valley-Bossier Consolidated) Field will be site of J.A. Gilliam II Gas Unit Well No. 23 and Fails Gas Unit Well No. 22. No. 23 will hit 13,400 feet in Chavert JL Survey A-10, seven miles southwest of Teague. No. 22 will hit 13,500 feet in Rowe AW Survey A-885, 5.9 miles southwest of Teague.

Teague (Cotton Valley- Bossier Consolidated) Field will see Henderson Gas Unit Well 30 drilled by XTO Energy five miles southeast of Teague at 12,900 feet. It will be in Lawrence J Survey A-364.
XTO will drill Tony Miller GU 1 Well 1 to 11,300 feet in a Wildcat 4.3 miles northeast of Wortham in Sweet SA Survey A-37.

http://www.tylerpaper.com/article/20080825/BUSINESS03/207283

Oil prices going Higher - Natural Gas prices 8/07/08

Oil is up almost $3 this morning to $121.35.....as I expected, the flush under $120 was short lived. People have been preaching under $100 oil for the last few days...and this is the second significant bounce we've gotten since Oil has gone under $130 in the past few weeks.

To me Oil seems like it is putting in a bottom here. People are kidding themselves thinking oil will go to $85. Yes, at $148 we have seen demand destruction but there is still a lot of demand and that is only going to get worse in the coming years.

People that are having a hard time with Oil prices going up should be putting money into the United States Oil Fund ( USO ) so at least when you are getting killed at the pump you are making money back as a hedge. This stock can be bought be anyone!

I personally think we will see $150-$160 oil in the next 6 months as winter approaches.

Natural Gas has gotten killed over the past month....from $14 down below $9...and that to is really to bounce back. Today it is around $9. I have bought stocks like Chesapeake Energy ( CHK ) and XTO Energy ( XTO ) They are huge operators in the shale plays around the United States. The Haynesville Shale has been huge and will continue to get even bigger. If Natural gas prices stay around $9-$10 this quarter, Chesapeake will make about $2 billion dollars this quarter on hedging activity since they lost 2 billion last quarter when Nat Gas was higher. This alone would give CHK stock a pop. Remember this when they report earnings in three months!

Barnett Shale - Chesapeake ( CHK ) record mineral rights lease

Chesapeake Energy CHK is working on a 650 acre lease on Lake Worth and Fort Worth properties located in the Barnett Shale. If this mineral rights lease deal gets done, it will be a record! Rumor has is Chesapeake is ready to pay out a $30,000 per acre signing bouns as well.

About 1,200 property owners in Boat Club Estates, Highland Lake Estates, Jinkens Heights, Crestview, Crestridge, Triangle Estates and Lakeview Estates are involved in the lease. The land is roughly bounded by Lake Worth to the west, Azle Avenue to the south, Boat Club Road to the east and Basswood Court to the north.

XTO appears to have been one of the bidders pushing this deal to a record.

Full Article Here

Chseapeake CHK vs XTO Energy Haynesville Shale

Who would have thought their would be drama in shale plays? A few weeks ago, the XTO Energy CEO on the Conference Call said people who are saying that the Haynesville Shale holds 250 trillion cubic feet of natural gas are hyping this shale play.

Today the Chesapeake CEO gave research data to back this figure up and they stick to what they think is over 240 trillion cubic feet of natural gas in the Haynesville Shale. The CEO says he is not hyping this shale play, rather is going by research.

Chesapeake says the core area in the Haynesville Shale could eventually see up to 50,000 per acre.

Chesapeake Energy says they are producing 45 million cubic feet per day of natural gas from 11 wells.....

XTO Energy XTO - John Najarian CNBC - Shale

John Najarian has come on CNBC this morning and states that yesterday XTO has seen very active call buying and institutional buying the last couple days.

He stated the last time XTO Energy was this low....crude oil was in the $70's.
He said if you want to play crude in a stock...this is the way to do it...usually it moves 2-1 higher or lower.
He also stated that XTO has been active in the Shale Plays which we already know!

XTO is active in the Following Shale Plays
Bakken Shale
Haynesville Shale
Marcellus Shale
Barnett Shale

Haynesville Shale - XTO Energy Speaks 250 TCF's

The Haynesville Shale, which is located in East Texas and Northwestern Louisiana, has the potential to be bigger then the Barnett Shale which is located in Texas.

XTO Energy ( XTO ) stated in their conference call that they have 100,000 acres in what they believe is the core drilling area. Of course, they would not tell us where that is due to competitive reasons.

XTO also shot down the rumor that their might be 250 trillion cubic feet of recoverable natural gas. Here are a few lines of the XTO conference call.

- The question pertains to some of these announcements, particularly the Haynesville where, suppose there are 750 Ts in place of which 250 Ts are recoverable. Have your engineers looked at these other shales at, are these just wide-eyed expectations for natural gas or is this possible?


Bob R. Simpson CEO - Yeah, if you look at and I am going to let Keith addressed most of this, but I like the flavor of that shale projection. If you look at the Barnett Shale, we're basically 10 years hard into the development of it. And we talk around 50 Ts as addressed. As you get into the plays you would expect to find something that's not as magic, as some overall model might suggest. Now there could be faults in it, there could be... maybe the process where people thought... there is just not enough data for somebody who could say that's proved, even though it's being communicated to you that way.
But that, at this moment, has a tremendous amount of hype in it. Now it may come true, but certainly there is no one in the right mind because of the foggiest idea, that you'll recover 250 T's, our 10-year's U.S supply, that's ridiculous [inaudible]. Now... but they hype artist, okay, they've been hype artists for ever, trace their history. Now, we don't do that, we will tell you yes, we go along. How it's going and you know obviously if you believe it's that easy to fine tune your supply, well then, what is the value of natural gas, it's not zero. And so that's the implication of that, and the danger of that and so the... now there will be areas where it worked more fine, and then apparently they [inaudible] that.
But to extrapolate into that is the greatest gas field approaching in the world. It's just silly and I say that with some experience and I'm dismayed that it's going on frankly. I think it leads to potentially a very [inaudible] things... in fact, there is not a [inaudible] payments. And our credibility is on the line and a lot of other things where they kind of hype.

Keith A. Hutton - President - If we look at Haynesville I mean there really are definitely wells. Most of them are in one particular area, in Louisiana that's fairly, tightly held. Yes you can see it on [inaudible]. That doesn't mean it will come to fruition, I would go to the Barnett Shale and think about the heights that originally surround the Barnett Shale, and it was 5 million acres and 10 counties. If we go back and look at it, it's three counties.
Most of the production is out of Johnson, Tarrant, Denton and Wise. The rest of it is just okay. It does not really add a lot volume, almost all the volume production out of that particular area and that's where most of the reserves are going to from, probably 90% of it out of those three counties, and I think that's probably what Haynes [ph] is doing that if you're going to have some really hot spots, obviously, I think some of these guys have found a couple of them. But, they are talking about 3.5 million to 4 million acres did not be perspective. Yes, that might be true but I don't think it's going to all the highly economic and I don't think it's going to swamp the U.S. gas market and i.e. not shifted.
It's an odd thing to watch people throwing that much firepower out there when they really don't have that much data. You can kind of dream up cases like that, but you need product... well production data to figure it out. You saw that in the Barnett, really Erath, Palo Pinto, Jack, most of that stuff is really not pretty good. Okay, what you here and everybody is [inaudible] and no one is really drilling much out there and there is a lot of acreage that was originally calculated and how big the Barnett was going to be. So just take with a grain of salt for what you are going to see from that field.

XTO Energy XTO - Barnett Shale - Earnings

XTO has come out with great company earnings this morning. 2nd quarter earnings per share was $1.11 with revenue coming in at $1.94 billion

XTO Energy expanded their position in the Barnett Shale acquiring another 12,900 acres for 800 million. XTO now has a total acreage position in the Barnett Shale of 280,000 of which 155,000 of those acres are in the heart of the shale play.

XTO energy also expanded in the Marcellus Shale, Haynesville Shale, Fayetteville Shale, but more will be coming later in their conference call.

Haynesville Shale Stocks Reversing HK, CHK, GDP, XTO

Last week their was a huge build in natural gas inventories.....up 16-20% then expected.

All of the Natural Gas stocks got hammered off of this news. Today they opened up weaker but now have reversed and seem to be wanting to break out.

Watch these Haynes Shale Stocks

PetroHawk Energy HK - Capitulated in the $36 area last week.....now reversing above $39 this morning.

Goodrich Petroleum GDP - Still continues to go down.....from $75 down to $57 in a week. GDP is bouncing off the lows this morning and is currently trading at $58.50

XTO Energy XTO - This stock has gotten hammered for being one of the bigger natural gas stocks. After hitting $53 Thursday....XTO has reversed back to $56. XTO is involved in alot of shales including the Bakken Shale of North Dakota, Marcellus Shale in Pennsylvania, and the Barnett Shale in Texas

Chesapeake Energy CHK - Chesapeake Energy has been smashed all the way down to $52 on Thursday....even after this company Announced that they will be selling their Woodford Shale acres for Beyond Petroleum ( BP ). CHK has been bouncing this morning above $55.

If you have been waiting for a dip in these stocks for awhile now.....here is your chance to invest in specifically the Haynesville Shale or many other shale plays by buying XTO or CHK

XTO Energy XTO Earnings 7/22

XTO Energy ( XTO ) reports earnings Tuesday July 22nd, 2008 8am Est. XTO Energy is expected to report $1.08 in Earnings.

This will be a key conference call for people wanting new details on XTO's shale plays including the Haynesville Shale, Marcellus Shale, Barnett Shale, and Bakken Shale Fields in which XTO has acreage positions.

I will be on the Conference Call in which I will report and important highlights right here in my blog. Barrons came out today and gave positive highlights on XTO today. It was also upgraded.

CNBC Fast Money Recap 6-18-08 USO

Top 2008 Stock Gainers click here

Fast Money Stock Picks to Watch 6/18/08

Jeff Mackie: Opinions

HMO Stocks: Don't fight the tape...UNH
Railroad Stocks: Floods are going away soon...buy the rails because of coal shipments
USO: Buy it, set a stop at $100

Pete Najarian: Opinions

Morgan Stanley MS: Bought the Financials today....
Regional Financial RF: Options Activity says more downside
Burlington Northern BNI: Great opportunity to buy this and the rail stocks...the flooding will go away
MYGN: Keep an eye on this....they continue to buy the july calls
Coal EFT KOL: I don't think this coal story is over....I think it can go higher

Guy Adami: Opinions

Morgan Stanley MS: Look for another 10-15% upside....it bottomed. Stop $37.50
Fed Ex FDX: You could easily see this go to $87-88 in the short term
XTO Energy XTO: I still think it goes higher
Deere DE: I think this stock can go a lot higher
Agrium AG: Given fertilizer prices I think this stock can go higher

Joe Terranova: Opinions

XLF: I bought this today.....I think you can start to buy financials
Oil: Friday is options expiration...look for it to go to $140

Recap of 6/17/08 Fast Money Click Here