Alberta Canada Oil Sands - Peace River Oil Sands Area

By Andrea: http://oilshalegas.com

Today we are profiling Tamm Oil & Gas Corp (TAMM.OB):

TAMM has acquired a 100% working interest in 55 contiguous sections of mineral rights or 35,200 acres, at Manning, Alberta in the Peace River Oil Sands Area. These mineral rights are considered to be prospective for heavy oil in the Mississippian Debolt, Elkton and other formations.

-"Internal company estimates of potentially 3 billion original barrels of heavy oil in place on the properties within the various zones with the majority in two specific zones".

-Current plan for 2009/2010 winter season would be a 3-5 well drilling and coring program with an additional 20 to 30 km seismic program to supplement the drilling and core data and thus continue to evaluate the potential resource.

-Work is currently ongoing to further study geology and acquire "trade data" seismic and map the adjoining lands for other potential acquisitions and to optimize the drilling/coring program.

-Subsequent plans might be building of sufficient year-round access and infrastructure to support increased development, ongoing drilling and seismic to more fully define the reserve, a test pilot of a one or two well production program -- to test for optimum methods of recovery -- CCS -- either vertical or horizontal or both, SAGD type enhanced recovery, Cold Flow, TIDE or other models.

-Current typical costs for these types of production methods, at the commercial pilot stage are around $40/bbl -- thus a good return for initial production aiming at 18% primary recovery and cyclic steam at 30% recovery. As production in this area is still in the early stages, the anticipated recovery rates may increase with experience in working with these potential reservoirs.

-Based on the results of the initial testing -- secondary testing might include a full scale pilot of between 5000 to 8000 bbls/d. This could potentially begin in 2011/2012.

Further information on Tamm Oil & Gas Corp (TAMM.OB), visit: http://www.tammoilandgas.com/s/AreaOfExploration.asp

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Marcellus Shale Update - May 18, 2009

Drilling activity in the Marcellus Shale has died down but is still out there. The recent drop in natural gas prices have put pressure on profit margins. Below is a Marcellus Shale update for 5/18/09


ENTRY INTO MARCELLUS AND DEEP TEST WELL COMPLETED IN NEW YORK

UNBRIDLED ENERGY CORP ( UNEFF ) announces it has successfully drilled the stratigraphic test well on its Chautauqua Lake acreage in western New York. The well was drilled, cored and logged to a total depth of 7,300’ as planned.

This well, drilled in conjunction with New York State Energy Research and Development Authority (NYSERDA) was an effort to test the potential of several deep horizons in the area. The exact well location was determined using 2-D seismic. The data from the logs and core is currently being evaluated.

http://www.unbridledenergy.com/news/article.aspx?id=92

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Haynesville Shale Update May 18, 2009

Lower natural gas prices have cut back a lot of drilling in the haynesville shale which is located in East Texas and North Louisiana. Below is a look back at last weeks activity in the haynesville shale natural gas field.

Haynesville Shale Report - 5/18/09

Mainland Resources, Inc. and JV Partner Spud Third Haynesville Shale Well on the Company's DeSoto Parish, Louisiana Property

Mainland Resources, Inc., (OTC Bulletin Board: MNLU; 5MN-Frankfurt) a Nevada Corporation (the "Company") reports that its Joint Venture (JV) Partner and Operator has commenced drilling operations on the Company's third JV well to evaluate additional potential of the Haynesville Shale gas formation on Mainland's Louisiana leases.

The Dehan et al 15#1H was spud on May 4, 2009 and is currently drilling at 6850 feet.
The well will be drilled to approximately 12,000 feet or a depth to sufficiently test the Haynesville Shale formation. Mainland will own a 25.42% Working Interest in this unit. The JV Partner and Operator will have a 38.12472% Working Interest in the well.

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Haynesville Shale March 16, 2009 3/16/09 - Update

This morning, 3/16/09, Mainland Resources ( MNLU ) has come out an updated investors on one of the wells they are drilling in the Haynesville Shale.

Mainland Resources ( MNLU ) reports that management has received detailed data readings from its Griffith 11 #1 well provided by the operator showing total well flow through March 10, 2009. The Griffith 11 #1 well located in Desoto Parish, Louisiana was completed and brought online in January 2009. The exact reading for total gas produced from the Haynesville shale and shipped to market through March 10, 2009 is reported at 568,856 MCF or .568 BCF.

Mainland Resources, Inc. holds a 40% working interest in the well and all future development in the Haynesville formation covering approximately 2695 net acres on its leases, which are located in northwest Louisiana.

The Haynesville Shale play is a new play less than one year old and there is limited data to work with to determine the decline rate for Haynesville Shale wells. The Company believes that the recoverable reserves for the Griffith well may ultimately be from 7.5 BCF to 15.81 BCF. The 15.81 BCF rate was determined by a reserve report for the Griffith #1 done by T.W. McQuire & Associates, Inc., prepared pursuant to U.S. Securities legislation. The ultimate recovery was determined by using a type curve that uses 80% decline for the first year, followed by 30% decline for the second year, 15% decline for the third year, and then a 10% decline over the remaining expected life of the well. This decline was derived from the Deutsche Bank report issued in 7/08 based on a study of various shale plays.

Mainland plans to participate in their second Haynesville well in Desoto Parish in May 2009. The third well on the Companys’ leases is on schedule to spud in August 2009.

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Marcellus Shale: Lycoming, PA 2009 SWN

Today, 2/27/09, Southwestern Energy ( SWN ) has announced that they have acquired acreage through mineral rights leasing in Pennsylvania regarding the Marcellus Shale.

In the first quarter of 2009, the company purchased approximately 21,715 net acres in Lycoming County, Pennsylvania, for approximately $8.2 million. As a result, Southwestern currently has approximately 137,000 net undeveloped acres in Pennsylvania under which it believes the Marcellus Shale is prospective.

http://www.swn.com/operations/new.ventures.asp

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Utica Shale: Junex JNX 2009 Update - Natural Gas

Junex ( CVE: JNX ) has come out today, 2/24/09, and updated investors on the Utica Shale well they are drilling with partner Forest Oil ( FST ).

Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 - 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues."

"We are quite excited that our partner is perseverant in its efforts and remains committed to the Utica Shale Gas project. The three wells drilled in 2008 are the first horizontal wells to be drilled and fracture stimulated in the Utica Shale in Quebec. Considering that the Lowlands shale gas play is at its earliest stage of development, we fully expect to learn and build upon the results from these few first wells to develop the best drilling and completion recipes for the Utica Shale" said Junex's president, Mr. Jean-Yves Lavoie, P. Eng. "Furthermore, the results of the Champlain #1H horizontal well, coupled with the results of Junex's St-Augustin-de-Desmaures #1 well drilled near Quebec City last year, demonstrate the shale gas potential of Junex's 100%-held north shore acreage along the pipeline corridor between the two areas."

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Haynesville Shale: DeSoto Parish 2009 Update

St Mary Land and Exploration ( SM ) has come out with an operational update on their first Haynesville Shale well drilled in Desoto Parish Louisiana.

In the Haynesville shale, St. Mary has reached total depth on it first operated horizontal Haynesville well. The Johnson Trust 1-2 well (SM 90% WI), located in the Spider Field in De Soto Parish, Louisiana, was drilled to an approximate measured depth of 15,100 feet and has a lateral length of roughly 3,300 feet. The well is scheduled to be completed in early March due to a delay related to the sourcing of proppant after the Company revised its original stimulation design. St. Mary’s current completion design calls for a ten stage, slick water fracture stimulation using slightly under three million pounds of premium resin coated sand. The next planned well in the Haynesville is expected to be in Shelby County, Texas, where the Company has a sizable acreage position. St. Mary has approximately 50,000 net acres that are prospective for the Haynesville shale in East Texas and northern Louisiana.

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http://www.stmaryland.com/news/news.cfm?archive=0&ID=206

Barnett Shale: Devon Energy DVN February 2009

Devon Energy came out with 4th Quarter earnings and gave an update on the Barnett Shale in Texas.

( From Seeking Alpha )

Moving now to our fourth quarter operating highlights, starting with the Barnett Shale field in North Texas, we are continuing running 23 Devon operated rigs compared with a peak of 39 rigs in the fourth quarter. This curtailment in activity is reflected in our average fourth quarter net production of 1.17 Bcf equivalent per day. This was up 4% over the third quarter and up 25% over the fourth quarter of 2007.

Looking forward in 2009, we plan to invest about 750 million of capital in the Barnett and drill over 200 operated wells. We plan to decrease the number of operated rigs to 8 and we'll focus primarily on the continuing success of our 1000 foot and 500 foot offset infill programs.

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Recycling Frac Water - Marcellus Shale PA

As you know, Pennsylvania has really cracked down on companies who are drilling in the Marcellus Shale as they do not want to contaminate the environment from the result of bad drilling practices.

One company, Equitable Resources ( EQT ), is starting a project to recycle frac water located in the Marcellus Shale. Equitable hopes to have this project done by the third quarter of 2009.

What is frac water? There are many different way to drill a natural gas shale well. The most common way it to blast a fresh water/sand combination at the shale it self in order to fracture it. Once this process is completed, the water becomes contaminated. It must be pumped back out and stored. To prevent a potential water shortage, Equitable is trying to recycle the water so it can be used over again.

( From Seeking Alpha ) - And then the last question is with the change in the administration and Congress, we are hearing some noise about on the environmental issues, water, and even possible making some noise about regulating fracture stimulation. Any thoughts on that?

Unidentified Company Representative

Well, yes, I’ll save the obvious ones, but what we are going to do, and I mentioned this a few times on the road recently, is we are in the process of building a recycling plant for Marcellus, water handling, we hope it will be up in the third quarter, or maybe a little earlier during this year. We are going to try to recycle that water.

Now that doesn’t address, which is the one concern that some people have that we are hurting the aquifer with salt water from the cracks. I hope adults will finally come to the conclusion that we've been doing that for 70 years now, and haven't damaged any aquifer, but forget about all that, we are trying to recycle as much of that frac water as we possibly can.

And, you know, drill more wells from the same pad so that you can reuse the water. We are going to do pan drilling, it is going to help in the Marcellus, recycling is going to help in the Marcellus, but we are focusing more of our attention on the disposal of the water, rather than the acquisition of the water.

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Woodford Shale: Newfield Exploration NFX 2009

Newfield Exploration ( NFX ) has come out and given an operational update on the Woodford Shale located in Oklahoma.

The Woodford Shale, located in the Arkoma Basin of southeastern Oklahoma, was Newfield's largest investment region in 2008 and will remain so in 2009. Total Woodford production in 2008 increased 65% over 2007 volumes. Gross operated production from the Woodford in early December exceeded the Company's year-end goal of 250 MMcfe/d. Due to longer lateral completions and efficiency gains, Newfield expects to grow its 2009 Woodford production by about 30%, despite running fewer operated rigs.

"The positive benefits of moving from the 'hold the ground' phase in the Woodford to development mode in 2008 is obvious from the improvement in our finding costs in the Mid-Continent," said Lee K. Boothby, Newfield Senior Vice President. "Our drilling and completion costs in 2008, stated on a lateral foot basis, were 38% lower than in 2007. We have drilled about 250 horizontal wells to date and our lateral lengths continue to grow. We now expect that our average lateral length in 2009 will be about 5,000', compared to just 2,428' in 2007 and 4,436' in 2008. This should result in higher initial production rates, greater recoveries per well and improved finding cost metrics."

http://phx.corporate-ir.net/phoenix.zhtml?c=63798&p=irol-newsArticle&ID=1250144&highlight=

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Woodford Shale: PQ Petroquest 2009

Petroquest Energy released earnings this morning and gave investors an operational update on how the Woodford Shale is going. January 29, 2009

As previously announced, the Company completed two operated horizontal wells in the Woodford Shale during October 2008. The Company recently completed three additional operated horizontal wells during the fourth quarter of 2008. The following is a summary of the results:

In addition to the above completions, the Company initiated completion operations on its 7,057 foot extended lateral well. After conducting two stages of the completion, the wellbore encountered mechanical problems. The Company has repaired the wellbore and the first two stages began producing at rates as high as 3,695 Mcf. The Company plans to conduct the remaining 16 stages of the completion during 2009. The Company estimates that its current net production from its Oklahoma properties is approximately 40 MMcfe per day.

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Marcellus Shale: Clearfield County PA 2009

Carrizo Oil & Gas provided an update on the Marcellus Shale for 2009. Carrizo is looking to start drilling in Clearfield County, PA in March of 2009.

Carrizo's activity in the Marcellus Shale is shifting from lease acquisition to evaluation drilling. In addition to two wells drilled through the Marcellus in late 2008, seven wells are currently in the permitting stage. The company expects to initiate drilling on its acreage in March starting with a well in Clearfield, PA.

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Barnett Shale - Tarrant Denton County Texas

Today, 1/28/09, Carrizo Oil & Gas provided an update on the Barnett Shale natural gas field located in Tarrant County, TX and Denton County Texas.

Since January 1st, 2009 the company has brought eleven new Barnett Shale horizontal natural gas wells on production. The combined daily production from these wells amounts to slightly over 31.5 MMcfe/day gross or 22 MMcfe/day net to Carrizo. President and CEO S. P. "Chip" Johnson, commented, "The initial production rates from these wells meet our expectations for core Barnett locations although right of way and permitting complications delayed them from coming on-stream in December as originally anticipated. Included in these new wells is our first 'stagger stacked' lateral well which was drilled on the Cain lease in southeast Tarrant County. This well tests the concept of placing two layers of horizontal wells in thicker parts of the shale. The well came on production and is performing as well as the other five wells on the lease, providing us encouraging early data to use in optimizing our future Barnett exploitation program. We currently have four rigs drilling in the core of the Barnett, three in southeast Tarrant County and one in Denton County."

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Bakken Shale: Hess ( HES ) January 29, 2009

Hess ( HES ) released earnings 1/28/09 and commented a little bit on the Bakken Shale.

( From Seeking Alpha ) - The Bakken contributed about 13% of the total net reserve adds at the end of the year and that’s both a consequence of performance as well as drilling so we’ve been very pleased with our experience in the Bakken. We’ve obviously shifted downwards in the Bakken in terms of drilling activity at this time because we were really ramped up and growing and going during 2008. So, we actually welcome the opportunity to take a more studied approach to the Bakken.
With respect to profitability and the Bakken is profitable right now and I expect that in this environment as we see as John Rielly mentioned pressures on contractors and suppliers to reduce costs, that we will continue to be profitable even should crude prices continue downwards.

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Haynesville Shale: Caddo Parish, Louisiana - Cubic Energy

Today, 1/28/09, Cubic Energy ( QBC ) has come out and given an updates on an additional well being drilled in the Haynesville Shale. This well is located in Caddo Parish, LA.

Cubic Energy (QBC) announces today it has accepted a proposal to participate in the horizontal drilling of Chesapeake Energy's ( CHK ) Clingman Acres 11H well. This well is located in the Johnson Branch Field of Caddo Parish, Louisiana, and will be horizontally drilled to a measured depth of 17,000 feet, followed by a Haynesville Shale completion.

The Clingman Acres 11H is located in Section 11, Township 15 North - Range 15 West in Caddo Parish, Louisiana, which is adjacent to the east side of Cubic's Johnson Branch Acreage. Cubic has an estimated 2.8% working interest in the well.

Cubic currently has 12 wells producing in its Johnson Branch acreage, and 10 wells producing in its more southern acreage position of Bethany Longstreet in DeSoto Parish, Louisiana.
Calvin Wallen III, Cubic's President and Chief Executive Officer stated, ``The Clingman Acres 11H will be located on the eastern edge of Cubic's Johnson Branch Acreage. This area has been proven, through Cubic's vertical drilling and Chesapeake's horizontal drilling, to be extremely prolific in the Haynesville Shale. We are very excited to have yet another opportunity for Horizontal Haynesville Shale development.''

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

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Marcellus Shale: MarkWest Energy MWE 2009

Yesterday, 1/27/09, Mark West Energy ( MWE ) stock exploded higher due to a dividend and the following news related to the Marcellus Shale.


2009—MarkWest Energy Partners, L.P. (NYSE: MWE) and NGP Midstream & Resources, L.P. (M&R) today announced an agreement to form a joint venture dedicated to the construction and operation of natural gas midstream services to support producer customers in the Marcellus Shale.
Under the terms of the joint venture, which will be owned 60 percent by MarkWest and 40
percent by M&R, MarkWest will operate the facilities and will contribute approximately $100 million of existing Marcellus Shale assets to the joint venture. M&R will invest the next $200 million of capital, which approximates the capital required to fund the Marcellus project in 2009. Capital funding for 2010 and 2011 will be driven by producer drilling programs. In order to achieve the 60 / 40 capital structure MarkWest will invest approximately $200 million in incremental capital by the end of 2011 in accordance with the joint venture agreement.

The Marcellus Shale continues to develop into one of the most prolific and economic natural gas shale plays in the United States. MarkWest has established a leading position in providing midstream services in the Marcellus Shale, including the recent development of gathering and processing infrastructure for Range Resources in southwest Pennsylvania. By the end of 2009, MarkWest and M&R expect the joint venture to be capable of processing up to 240 million cubic feet per day of gas for Range and other producers.

“M&R will be an excellent partner in our Marcellus project,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest Energy Partners. “M&R has a strong appreciation for the long-term strategic value of the Marcellus play and shares our vision of delivering best-of-class midstream services to producer customers, including our significant relationship with Range Resources. The structure of the joint venture will allow MarkWest to achieve its long-term objectives in the Marcellus while significantly reducing capital requirements over the next several years, which is a critical component of our balance sheet and liquidity objectives. The experience and expertise of MarkWest and M&R are very complementary and we look forward to a long-term business relationship.”

http://www.markwest.com/files/MWE/MWE%20M&R%20JV%20FINAL.pdf

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Bakken Formation: Mountrial County ND Oil Shale Update

Whiting Petroleum ( WLL ) provides an update on the Bakken Shale Formation in Mountrial County, North Dakota today, 1/20/09. Whiting is active in the Sanish Field and the Parshall Field.

Sanish Field. Whiting's Sanish area in Mountrail County, North Dakota encompasses 125,557 gross acres (83,606 net acres). December 2008 net production in the Sanish field averaged 7.5 MBOE/d, an 832% increase from 0.8 MBOE/d in December 2007. As of January 12, 2009, Whiting has participated in 65 wells (27 operated) that target the Bakken formation, of which 49 are producers, seven are completing and nine are drilling. Of these operated wells, 23 were completed in 2008. Whiting has completed and placed on production its first Bakken infill well in the Sanish field, the McNamara 42-26H. This well was drilled between two horizontal Bakken producers, the Locken 11-22H and the Liffrig 11-27H. The initial production rate at the McNamara well was 2,170 BOE/d (measured December 8, 2008), which falls between the initial production rates of the two offset wells. There was no indication of communication or interference with either of the offset wells. Based on these results, Whiting expects to develop its leases with two 10,000-foot horizontal wells in each 1,280-acre spacing unit. Whiting has also completed its first Three Forks horizontal well in the Sanish field, the Braaflat 21-11TFH. The initial production rate at the Braaflat well was 1,005 BOE/d (measured January 1, 2009). Production and pressure data from this well will be analyzed over several months to determine the viability of developing the Three Forks.

Whiting intends to drill an additional 28 operated Bakken wells in the Sanish field during 2009, with an average working interest of 74%, five of which were drilling at January 12, 2009. Whiting expects an average of six drilling rigs to be working in the Sanish field during 2009. Whiting expects its net capital expenditures in the Sanish field during 2009 to be approximately $150.6 million.

Parshall Field. Immediately east of the Sanish field is the Parshall field, where Whiting owns interests in 73,760 gross acres (18,315 net acres). Whiting's net production from the Parshall field averaged 6.7 MBOE/d in December 2008, a 341% increase from 1.5 MBOE/d in December 2007. As of January 12, 2009, Whiting has participated in 95 Bakken wells, the majority of which are operated by EOG Resources, Inc., of which 85 are producers, four are completing and six are drilling. Of these wells, 64 were completed in 2008. Whiting intends to participate in the drilling of an additional nine wells in the Parshall field during 2009, with an average working interest of approximately 16%. Whiting expects its net capital expenditures in the Parshall field during 2009 to be approximately $12.1 million.

http://phx.corporate-ir.net/phoenix.zhtml?c=147759&p=irol-newsArticle_Print&ID=1246317&highlight=

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Woodford Shale: Canadian County, OK Marathon Oil MRO

Marathon Oil ( MRO ) has come out and given an update on the Woodford Shale - Natural Gas Field located in Canadian County Oklahoma. This mean, the Woodford Shale is moving West in the State of Oklahoma.

As part of the Company's targeted expansion into key resource plays of North America, Marathon Oil Corporation (NYSE: MRO) announced today that it has participated in a successful step-out discovery well on the Brickyard prospect, located in the northeast area of the Anadarko Basin, targeting the Woodford Shale resource play in Canadian County, Oklahoma.
The Cana No. 1-15H discovery well was drilled to a true vertical depth of 13,177 feet and horizontally for 4,090 feet, for a total measured well depth of 17,267 feet. The well flowed at an initial rate of 5.2 million cubic feet of gas per day. Marathon is the well operator and holds approximately 57 percent interest in the Cana No. 1-15H well. Other interest owners include Questar Corporation and Cimarex Energy.

"Marathon is encouraged by the results of the Brickyard prospect as we continue to develop the emerging Woodford Shale resource play," stated Annell R. Bay, senior vice president, Worldwide Exploration. "We are using 3-D seismic technology to better define our targets and applying advanced drilling technology to reduce drilling days and well costs thereby improving overall well economics."

Marathon holds approximately 30,000 net acres in the expanding Woodford Shale resource play with approximately 10,000 of those net acres in the immediate Brickyard prospect area. The Company is currently drilling two additional company-operated wells and is participating in two non-operated wells in the Brickyard prospect. Marathon also plans to participate in 15 to 25 gross wells in this area through 2010 with an anticipated 50 percent overall working interest. This limited program is designed to enhance the company's technical understanding of the play and reflects the company's focus on capital discipline. Marathon expects that with the successful development of this program, the play could yield an additional 200 to 300 gross locations.

Full Article - http://www.marathon.com/News/Press%5FReleases/Press%5FRelease/?id=1241249

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Fayetteville Shale: Southwestern Energy SWN 2009

Southwestern Energy ( SWN ) has come out and given their drilling and budget update for the Fayetteville Shale in 2009.


“2008 has been an incredible year for Southwestern Energy. We have seen significant
improvements in our well performance in the Fayetteville Shale over the past several
quarters, resulting in remarkable growth in our production levels and, correspondingly, our earnings and cash flow. Meanwhile, the turbulent times in the financial and commodity markets are having a considerable impact on both the national economy and our industry.

As a result, we will enter 2009 with both caution and optimism. We believe the future for Southwestern is very bright and that 2009 will be another record year for our company. The company is well positioned with an extremely strong balance sheet and financial position and an opportunity set that rivals any in our industry with our Fayetteville Shale play,” stated Harold M. Korell, Chairman and Chief Executive Officer of Southwestern Energy.

“In 2009, we will continue to operate 20-21 rigs in the Fayetteville Shale play and, with the improvements in our drilling times, we currently expect to participate in approximately 620 horizontal wells (470 operated), compared to an estimated 520 wells in 2008, as we continue to develop our significant acreage position. As a result of our planned investments, we expect our 2009 production to be in a range of 280 to 284 Bcfe, which is an increase of approximately 48% compared to our expected 2008 levels,” stated Korell.

For More Updates on the Fayetteville Shale...Click Here