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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Showing posts with label barrels of oil. Show all posts
Showing posts with label barrels of oil. Show all posts
Thursday, December 30, 2010
Monday, October 25, 2010
Berry Petroleum Company (BRY) - Permian Basin shale Update
By Andrea: http://oilshalegas.com
Berry Petroleum Company (BRY) announced that it has entered into agreements with a group of sellers to acquire their interests in properties on approximately 9,300 net acres in the Wolfberry trend (Permian Basin) in West Texas for a combined purchase price of $180 million in cash. Berry's proved plus probable reserve estimates associated with the forty-acre development of the properties are approximately 35 million barrels of oil equivalent (MMBOE) with crude oil comprising 76% of these volumes. Upon completion of the acquisitions, the properties are expected to add approximately 2,200 barrels of oil equivalent per day (BOED) to Berry's production during 2011.
Since entering the Permian basin in March of 2010, Berry has accumulated approximately 19,350 net acres in the Wolfberry trend. The $313 million of acquisitions in 2010 is expected to provide a five-year drilling inventory in the Wolfberry of 400 locations on forty-acre spacing with an additional 400 potential locations on twenty-acre spacing.
Robert Heinemann, president and chief executive officer, stated, "We are pleased to bring additional scalable, high margin oil assets into the portfolio which complements our base oil assets in California and Utah. We believe these acquisitions enhance our overall Permian operations with a contiguous 6,800 net acre block and strong per well recoveries of 180 MBOE. The first three years of expected production on these assets has a hedging floor of approximately $87 WTI which should allow these assets to generate operating margins of $62 per barrel. The Company's existing Wolfberry assets, acquired earlier in 2010, are performing in line with expectations and production is 1,700 BOED today. With the acquisitions announced today, we now expect production from our Permian assets will grow to 9,000 BOED during the next four years."
David Wolf, executive vice president and chief financial officer, stated "We expect to fund this acquisition under our credit facility and on a pro forma basis we will have liquidity of over $500 million. With this acquisition, our leverage should be in the range of 2.25 to 2.5 times EBITDA in 2011."
The effective date of the transaction is October 1, 2010 with closing expected in December 2010 and is subject to customary closing conditions. Production from the properties to be acquired is expected to be approximately 1,200 BOED at closing. Contribution to the Company's fourth quarter 2010 production will be minimal given the expected closing date.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Berry Petroleum Company (BRY) announced that it has entered into agreements with a group of sellers to acquire their interests in properties on approximately 9,300 net acres in the Wolfberry trend (Permian Basin) in West Texas for a combined purchase price of $180 million in cash. Berry's proved plus probable reserve estimates associated with the forty-acre development of the properties are approximately 35 million barrels of oil equivalent (MMBOE) with crude oil comprising 76% of these volumes. Upon completion of the acquisitions, the properties are expected to add approximately 2,200 barrels of oil equivalent per day (BOED) to Berry's production during 2011.
Since entering the Permian basin in March of 2010, Berry has accumulated approximately 19,350 net acres in the Wolfberry trend. The $313 million of acquisitions in 2010 is expected to provide a five-year drilling inventory in the Wolfberry of 400 locations on forty-acre spacing with an additional 400 potential locations on twenty-acre spacing.
Robert Heinemann, president and chief executive officer, stated, "We are pleased to bring additional scalable, high margin oil assets into the portfolio which complements our base oil assets in California and Utah. We believe these acquisitions enhance our overall Permian operations with a contiguous 6,800 net acre block and strong per well recoveries of 180 MBOE. The first three years of expected production on these assets has a hedging floor of approximately $87 WTI which should allow these assets to generate operating margins of $62 per barrel. The Company's existing Wolfberry assets, acquired earlier in 2010, are performing in line with expectations and production is 1,700 BOED today. With the acquisitions announced today, we now expect production from our Permian assets will grow to 9,000 BOED during the next four years."
David Wolf, executive vice president and chief financial officer, stated "We expect to fund this acquisition under our credit facility and on a pro forma basis we will have liquidity of over $500 million. With this acquisition, our leverage should be in the range of 2.25 to 2.5 times EBITDA in 2011."
The effective date of the transaction is October 1, 2010 with closing expected in December 2010 and is subject to customary closing conditions. Production from the properties to be acquired is expected to be approximately 1,200 BOED at closing. Contribution to the Company's fourth quarter 2010 production will be minimal given the expected closing date.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Sunday, October 24, 2010
Comstock Resources, Inc.: Mississippi shale sale
By Andrea: http://oilshalegas.com
Comstock Resources, Inc. (CRK) recently released an update and announced that it will be selling $75 million worth of natural gas and crude oil assets from it's Mississippi properties:
Comstock Resources, Inc. (CRK) announced that it has entered into an agreement to sell its oil and gas properties located in Mississippi to a privately held company. Comstock expects to receive $75 million in cash pursuant to the terms of the sale. Net production from the properties to be sold averaged 1,138 barrels of oil and 0.9 MMcf of natural gas per day during the first six months of 2010. The sale is expected to close prior to year end and is subject to completion of customary due diligence by the purchaser and closing conditions.
"The successful sale of this non-core asset allows us to further concentrate our resources and personnel on our core assets in the Haynesville and Bossier shale and our emerging position in the Eagle Ford shale," stated M. Jay Allison, Chief Executive Officer of Comstock.
Scotia Waterous (USA) Inc. acted as financial advisor to Comstock with respect to the sale.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Comstock Resources, Inc. (CRK) recently released an update and announced that it will be selling $75 million worth of natural gas and crude oil assets from it's Mississippi properties:
Comstock Resources, Inc. (CRK) announced that it has entered into an agreement to sell its oil and gas properties located in Mississippi to a privately held company. Comstock expects to receive $75 million in cash pursuant to the terms of the sale. Net production from the properties to be sold averaged 1,138 barrels of oil and 0.9 MMcf of natural gas per day during the first six months of 2010. The sale is expected to close prior to year end and is subject to completion of customary due diligence by the purchaser and closing conditions.
"The successful sale of this non-core asset allows us to further concentrate our resources and personnel on our core assets in the Haynesville and Bossier shale and our emerging position in the Eagle Ford shale," stated M. Jay Allison, Chief Executive Officer of Comstock.
Scotia Waterous (USA) Inc. acted as financial advisor to Comstock with respect to the sale.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Sunday, September 26, 2010
American Petro-Hunter Inc. - Woodford Shale Update
By Andrea: http://oilshalegas.com
American Petro-Hunter, Inc. (AAPH.OB) recently spud a new well in the Woodford shale located in North Oklahoma -
American Petro-Hunter, Inc. (AAPH.OB) recently announced the commencement of drilling operations and the spud of the NOJ26 Well at the North Oklahoma Shale Oil Project. Surface casing has been set and the operator reports that drilling is moving ahead.
The planned T.D. (total depth) of the well is 4,000 feet and is anticipated to intersect multiple objectives that include the primary oil shale along with excellent potential in the Simpson and Wilcox formations. As reported previously, the Wilcox is considered one of the most prolific producers in the area and nearby existing analogous production has cumulatively produced 80,000 barrels of oil per well. Wilcox wells often deliver initial production rates in excess of 100-120 BOPD with 200 MCF of gas.
The Company is satisfied that the multiple objectives considerably minimize risk given the three potentially productive formations and will significantly increase the overall data to be gained regarding shale response to acidization and fracturing. Once this well is drilled, completed and put into production, the Company intends to immediately move forward and implement plans for the commencement of operations at the previously announced horizontal well destined for a nearby location within the property.
NOJ26 will incorporate extensive oil shale analysis tests in order to optimize the stimulation program in order to maximize commercial production. If the stimulation procedure returns flow rates as suggested by preliminary data, it is estimated that the well could potentially be a 200 plus BDP producer. American Petro-Hunter is a 50% partner in the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
American Petro-Hunter, Inc. (AAPH.OB) recently spud a new well in the Woodford shale located in North Oklahoma -
American Petro-Hunter, Inc. (AAPH.OB) recently announced the commencement of drilling operations and the spud of the NOJ26 Well at the North Oklahoma Shale Oil Project. Surface casing has been set and the operator reports that drilling is moving ahead.
The planned T.D. (total depth) of the well is 4,000 feet and is anticipated to intersect multiple objectives that include the primary oil shale along with excellent potential in the Simpson and Wilcox formations. As reported previously, the Wilcox is considered one of the most prolific producers in the area and nearby existing analogous production has cumulatively produced 80,000 barrels of oil per well. Wilcox wells often deliver initial production rates in excess of 100-120 BOPD with 200 MCF of gas.
The Company is satisfied that the multiple objectives considerably minimize risk given the three potentially productive formations and will significantly increase the overall data to be gained regarding shale response to acidization and fracturing. Once this well is drilled, completed and put into production, the Company intends to immediately move forward and implement plans for the commencement of operations at the previously announced horizontal well destined for a nearby location within the property.
NOJ26 will incorporate extensive oil shale analysis tests in order to optimize the stimulation program in order to maximize commercial production. If the stimulation procedure returns flow rates as suggested by preliminary data, it is estimated that the well could potentially be a 200 plus BDP producer. American Petro-Hunter is a 50% partner in the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Wednesday, September 15, 2010
Continental Resources Completes 13 New Bakken Shale Wells
By Andrea: http://oilshalegas.com
Continental Resources, Inc. (CLR) recently announced the completion of 13 Company-operated gross wells (7.4 net) in the North Dakota Bakken play since July 1, 2010, with an average one-day production test of 1,070 Boepd (barrels of oil equivalent per day). These wells, with their one-day test results, included:
- Roadrunner 1-15H (56% WI) in Dunn Co. - 1,722 Boepd;
- Medicine Hole 2-27H (43% WI) in Dunn Co. - 1,702 Boepd;
- Rollefstad 2-3H (73% WI) in McKenzie Co. - 1,689 Boepd;
- Bonney 2-3H (43% WI) in Dunn Co. - 1,435 Boepd;
- Howard 1-5H (52% WI) in Divide Co. - 1,201 Boepd;
- Ravin 1-1H (59% WI) in McKenzie Co. - 1,034 Boepd;
- Bjella 1-24H (41% WI) in Williams Co. - 1,029 Boepd.
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Saturday, August 14, 2010
Avalon Shale Update: Devon Energy Corp. (DVN)
By Andrea: http://oilshalegas.com
Devon Energy Corp. (DVN) announced that they are starting to build a position in the Avalon shale in their 2010 2Q earnings call. They have assembled 235,000 perspective net acres in the condensate- and liquids-rich gas play. While they are still in the early evaluation of the Avalon shale play, their initial drilling results prove to show an attractive, repeatable play with outstanding economics. They best wells Devon has drilled to date in the Avalon shale have IPd at over 500 barrels of condensate per day, 500 barrels of NGLs per day and 3 million to 5 million cubic feet per day of gas. Well costs in the Avalon shale run between $3.3 million and $4 million. Devon expects Avalon wells to have average IPs of 300 barrels condensate per day, 300 barrels of NGLs per day and 2 million cubic feet of gas per day in the heat of the Avalon shale play. They expect per-well recoveries to average over 600,000 barrels of oil equivalent. Devon plays to participate in 32 Avalon wells in 2010, 20 of which they will operate.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Devon Energy Corp. (DVN) announced that they are starting to build a position in the Avalon shale in their 2010 2Q earnings call. They have assembled 235,000 perspective net acres in the condensate- and liquids-rich gas play. While they are still in the early evaluation of the Avalon shale play, their initial drilling results prove to show an attractive, repeatable play with outstanding economics. They best wells Devon has drilled to date in the Avalon shale have IPd at over 500 barrels of condensate per day, 500 barrels of NGLs per day and 3 million to 5 million cubic feet per day of gas. Well costs in the Avalon shale run between $3.3 million and $4 million. Devon expects Avalon wells to have average IPs of 300 barrels condensate per day, 300 barrels of NGLs per day and 2 million cubic feet of gas per day in the heat of the Avalon shale play. They expect per-well recoveries to average over 600,000 barrels of oil equivalent. Devon plays to participate in 32 Avalon wells in 2010, 20 of which they will operate.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
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