By Tim - http://oilshalegas.com
Recently, I've been asked to blog about the recent activity going on in the Permian Basin right now located in West Texas. The Permian Basin is the hot spot right now as was the Eagle Ford Shale over the past year. While we are seeing the majority of the rigs continue to flock to the Eagle Ford Shale, there is a huge jump in rigs and drilling activity in the Permian Basin.
The Permian Basin consists on a combination of Oil fields which also contain Natural Gas. On the east side, we have the Spraberry Field as the top zone, the Dean Formation as the middle layer, and the Wolfcamp Shale as the bottom zone. When the oil producers drill into all of these formations, they are calling it the Wolfberry.
On the west side, we are talking about the top layer being the Avalon Shale ( also known as Leonard Shale ) with it mixing into the top layer of the Bone Spring which is made up of three zones. After the bone spring formation, we have the wolfcamp shale again. This area is located in West Texas and extends up into New Mexico. Lea County New Mexico and Eddy County New Mexico are the hot spots.
The Spraberry is seeing acreage go for $15,000+ per acre in some spots regarding mineral rights leasing. All of these zones are hot hot hot and producing a lot of oil.
For more shale updates, visit http://blackberrystocks.blogspot.com
Showing posts with label drilling update. Show all posts
Showing posts with label drilling update. Show all posts
Saturday, November 20, 2010
Saturday, December 20, 2008
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 theFayetteville 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
“2008 has been an incredible year for Southwestern Energy. We have seen significant
improvements in our well performance in the
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
Thursday, November 20, 2008
Marcellus Shale: Range Resources Drilling Update 11/20/08
Range Resources ( RRC ) is out with a drilling update, 11/20/08, on their Marcellus Shale natural gas acreage.
Last month Range and MarkWest Energy Partners, L.P. (NYSE:MWE) announced completion of the first phase of the Marcellus Shale infrastructure. The initial phase included gas gathering and compression as well as Pennsylvania's first large-scale gas processing facility. Since then Range has been completing production facilities and connecting previously drilled wells to the gas gathering system. Currently, seven wells are tied into the gas processing facility and net sales from these wells total 30 Mmcfe per day.
MarkWest is currently undertaking additional infrastructure development which will serve to expand the gathering system and add gas processing capacity. A cryogenic plant is expected to be online by the end of first quarter 2009, increasing gas processing capacity to 60 Mmcf per day. By year-end 2009 or early 2010, processing capacity is anticipated to be 180 Mmcf per day. As additional gas processing capacity is completed, Range will turn on additional wells. Range currently plans to enter 2009 with three horizontal rigs, increasing to six rigs by the end of 2009. By year-end 2009, Range anticipates that production will reach 80 to 100 Mmcfe per day, net to its interest.
John H. Pinkerton, Chairman and CEO of Range Resources, commented, "We continue to make exciting progress in the Marcellus Shale play as production rates are exceeding expectations. Our technical team is making excellent headway in reducing drilling costs which is very important as we ramp up our development activities. Having now transitioned from the testing phase to the development phase, the Marcellus Shale play should greatly enhance our future production, reserves and capital efficiency. Given its proximity to the northeastern gas markets, the Marcellus Shale play is ideally located to provide a new source of domestic, clean-burning natural gas for many years to come. Importantly, during this period of economic uncertainty, the Marcellus Shale play has the potential to add tens of thousands of new jobs and billions of dollars of economic benefit
http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=790&ResLibraryID=27570&Category=1261
Last month Range and MarkWest Energy Partners, L.P. (NYSE:MWE) announced completion of the first phase of the Marcellus Shale infrastructure. The initial phase included gas gathering and compression as well as Pennsylvania's first large-scale gas processing facility. Since then Range has been completing production facilities and connecting previously drilled wells to the gas gathering system. Currently, seven wells are tied into the gas processing facility and net sales from these wells total 30 Mmcfe per day.
MarkWest is currently undertaking additional infrastructure development which will serve to expand the gathering system and add gas processing capacity. A cryogenic plant is expected to be online by the end of first quarter 2009, increasing gas processing capacity to 60 Mmcf per day. By year-end 2009 or early 2010, processing capacity is anticipated to be 180 Mmcf per day. As additional gas processing capacity is completed, Range will turn on additional wells. Range currently plans to enter 2009 with three horizontal rigs, increasing to six rigs by the end of 2009. By year-end 2009, Range anticipates that production will reach 80 to 100 Mmcfe per day, net to its interest.
John H. Pinkerton, Chairman and CEO of Range Resources, commented, "We continue to make exciting progress in the Marcellus Shale play as production rates are exceeding expectations. Our technical team is making excellent headway in reducing drilling costs which is very important as we ramp up our development activities. Having now transitioned from the testing phase to the development phase, the Marcellus Shale play should greatly enhance our future production, reserves and capital efficiency. Given its proximity to the northeastern gas markets, the Marcellus Shale play is ideally located to provide a new source of domestic, clean-burning natural gas for many years to come. Importantly, during this period of economic uncertainty, the Marcellus Shale play has the potential to add tens of thousands of new jobs and billions of dollars of economic benefit
http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=790&ResLibraryID=27570&Category=1261
Wednesday, November 19, 2008
Bossier Shale: Gastar East Texas Drilling Results
Gastar Exploration is out today, 11/19/08, updating investors on drilling results from their deep sand Bossier Shale wells. The Bossier Shale sits below the Haynesville Shale FYI.
Gastar Exploration Ltd. (NYSE GST) today announced that it has successfully drilled the Belin #1 well, a deep Bossier test, to a total depth of 18,800 feet and has logged approximately 150 net feet of pay in the middle and lower Bossier formations.
The Belin #1 well contains three pay zones within the lower Bossier formation that, based on log analysis, have the highest measured porosity -- up to 25% -- of any wells drilled by Gastar in the deep Bossier play. The well also encountered two middle Bossier sands, including the Lanier Sand, in a downdip location in a new fault block with indicated pay based on log analysis.
The well is expected to be completed and producing within 30 days. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.
"The Belin #1 well has the potential to be Gastar's best well to date in terms of estimated recoverable reserves and potential flowrate in the Hilltop area," said J. Russell Porter, Gastar's President and CEO.
"We plan to complete the well in the two deepest zones first, and we expect that to be a high-rate completion. We are also very encouraged by the fact that the Lanier Sand was present and has been shown to be productive in a downthrown fault block from the Wildman Trust #3 well, where the Lanier Sand was recently recompleted at an initial rate of 21 MMcf per day."
In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth close to year end. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.
http://oilshalegas.com
Gastar Exploration Ltd. (NYSE GST) today announced that it has successfully drilled the Belin #1 well, a deep Bossier test, to a total depth of 18,800 feet and has logged approximately 150 net feet of pay in the middle and lower Bossier formations.
The Belin #1 well contains three pay zones within the lower Bossier formation that, based on log analysis, have the highest measured porosity -- up to 25% -- of any wells drilled by Gastar in the deep Bossier play. The well also encountered two middle Bossier sands, including the Lanier Sand, in a downdip location in a new fault block with indicated pay based on log analysis.
The well is expected to be completed and producing within 30 days. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.
"The Belin #1 well has the potential to be Gastar's best well to date in terms of estimated recoverable reserves and potential flowrate in the Hilltop area," said J. Russell Porter, Gastar's President and CEO.
"We plan to complete the well in the two deepest zones first, and we expect that to be a high-rate completion. We are also very encouraged by the fact that the Lanier Sand was present and has been shown to be productive in a downthrown fault block from the Wildman Trust #3 well, where the Lanier Sand was recently recompleted at an initial rate of 21 MMcf per day."
In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth close to year end. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.
http://oilshalegas.com
Wednesday, October 29, 2008
Haynesville Shale: Encore ( EAC ) 10/29/08 Drilling Update
Encore Acquisition ( EAC ) has come out and updated Shareholders on their progress on the Haynesville Shale.
The Stockman Field in East Texas continues to outperform the Company's expectations.Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D. The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.
The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.
http://www.encoreacq.com/releasedetail.cfm?ReleaseID=343641
The Stockman Field in East Texas continues to outperform the Company's expectations.Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D. The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.
The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.
http://www.encoreacq.com/releasedetail.cfm?ReleaseID=343641
Monday, August 25, 2008
Haynesville Shale - Wilcox Aquifier could be affected
The feds' could soon get involved in keeping track of underground water levels affected by drilling in the Haynesville Shale.
Ben McGee with the U.S. Geological Survey met with Caddo officials Friday morning, including commissioners and Parish Administrator Woody Wilson.
The parish may ask the U.S.G.S. to do another study on the Wilcox Aquifer and the long-term effects that gas drilling could have on water levels.
"Bottom line is, it's not hard to stress the Wilcox Aquifer," said McGee, a supervisory hydrologist with the U.S.G.S., who used 2005 study figures in his discussion with parish leaders.
The Wilcox Aquifer accounts for 25-percent of the water supply for Caddo Parish, used primarily in rural, farming areas. Also in attendance, Gary Hanson, who is director of the Red River Watershed Management Institute and Professor of Geology at LSU-Shreveport. He described the Wilcox Aquifer as slow to re-charge (re-fill). Its saving grace, compared to a 'confined' aquifer, is the fact it is a 'surface water re-charge aquifer,' replenished largely by rain water over a large surface area.
Full Article Here
Ben McGee with the U.S. Geological Survey met with Caddo officials Friday morning, including commissioners and Parish Administrator Woody Wilson.
The parish may ask the U.S.G.S. to do another study on the Wilcox Aquifer and the long-term effects that gas drilling could have on water levels.
"Bottom line is, it's not hard to stress the Wilcox Aquifer," said McGee, a supervisory hydrologist with the U.S.G.S., who used 2005 study figures in his discussion with parish leaders.
The Wilcox Aquifer accounts for 25-percent of the water supply for Caddo Parish, used primarily in rural, farming areas. Also in attendance, Gary Hanson, who is director of the Red River Watershed Management Institute and Professor of Geology at LSU-Shreveport. He described the Wilcox Aquifer as slow to re-charge (re-fill). Its saving grace, compared to a 'confined' aquifer, is the fact it is a 'surface water re-charge aquifer,' replenished largely by rain water over a large surface area.
Full Article Here
Tuesday, July 29, 2008
Continental Resources ( CLR ) Bakken Shale - Earnings
This morning Continental Resources ( CLR ) has released earnings. CLR reported net income of 124 million or .75 cents per share for the 2nd quarter of 2008. In last years 2nd quarter, Continental Resources reported 44 million in net income - .27 cents per share on a pro forma basis. Now you can see why CLR is one of the Top 2008 Stock Gainers. Total revenues were 303.4 million vs 145.3 Million a year ago.
The Company's average sales price per barrel of crude oil equivalent was $102.86 for the most recent quarter, compared with $54.44 for the second quarter last year.
Bakken Shale
In the second quarter of 2008, Continental increased its lease acreage position in the Bakken Shale play to approximately 525,000 net acres, with153,000 net acres in Montana and 372,000 net acres in North Dakota.
Here is each well list and the production rate for each well:
-- Mathistad 1-35H (40% WI) in McKenzie Co. -- 1,260 boepd;
-- Dodge 1-17H (20% WI) McKenzie Co. -- 989 boepd;
-- Whitman 11-34H (32% WI) in Dunn Co. -- 765 boepd;
-- Bice 1-29H (44% WI) in Dunn Co. -- 693 boepd;
-- Cleo 1-12H (26% WI) McKenzie Co. -- 654 boepd;
-- Carson Peak 44-2H (33% WI) in Dunn Co. -- 601 boepd;
-- Kermit 1-32H (45% WI) McKenzie Co. -- 596 boepd;
-- Bridger 44-14H (45% WI) in Dunn Co. -- 383 boepd;
-- Bonneville 31-23H (45% WI) in Dunn Co. -- 362 boepd;
-- Mountain Gap 31-10H (44% WI) in Dunn Co. -- 331 boepd.
Where is the Three Forks Region?
Eight of the 10 wells listed above were completed in the Middle Bakken formation, which has typically been the drilling target in the North Dakot Bakken play. The Bice 1-29H and Mathistad 1-35H were Continental's first to wells to be targeted for the Three Forks/Sanish (TFS) formation, which is typically found 50-to-100 feet beneath the base of the Upper Bakken. Since the Bice 1-29H completion in late May, Continental has adjusted most of its drilling program to target specifically the TFS and determine its potential toadd incremental reserves to the play.
Woodford Shale:
Continental's lease position in the Arkoma Woodford is approximately46,000 acres
Haynesville Shale
The Company has grown its land positions to approximately 17,000 net acres in the Haynesville Shale play in northern Louisiana and approximately
The Company's average sales price per barrel of crude oil equivalent was $102.86 for the most recent quarter, compared with $54.44 for the second quarter last year.
Bakken Shale
In the second quarter of 2008, Continental increased its lease acreage position in the Bakken Shale play to approximately 525,000 net acres, with153,000 net acres in Montana and 372,000 net acres in North Dakota.
Here is each well list and the production rate for each well:
-- Mathistad 1-35H (40% WI) in McKenzie Co. -- 1,260 boepd;
-- Dodge 1-17H (20% WI) McKenzie Co. -- 989 boepd;
-- Whitman 11-34H (32% WI) in Dunn Co. -- 765 boepd;
-- Bice 1-29H (44% WI) in Dunn Co. -- 693 boepd;
-- Cleo 1-12H (26% WI) McKenzie Co. -- 654 boepd;
-- Carson Peak 44-2H (33% WI) in Dunn Co. -- 601 boepd;
-- Kermit 1-32H (45% WI) McKenzie Co. -- 596 boepd;
-- Bridger 44-14H (45% WI) in Dunn Co. -- 383 boepd;
-- Bonneville 31-23H (45% WI) in Dunn Co. -- 362 boepd;
-- Mountain Gap 31-10H (44% WI) in Dunn Co. -- 331 boepd.
Where is the Three Forks Region?
Eight of the 10 wells listed above were completed in the Middle Bakken formation, which has typically been the drilling target in the North Dakot Bakken play. The Bice 1-29H and Mathistad 1-35H were Continental's first to wells to be targeted for the Three Forks/Sanish (TFS) formation, which is typically found 50-to-100 feet beneath the base of the Upper Bakken. Since the Bice 1-29H completion in late May, Continental has adjusted most of its drilling program to target specifically the TFS and determine its potential toadd incremental reserves to the play.
Woodford Shale:
Continental's lease position in the Arkoma Woodford is approximately46,000 acres
Haynesville Shale
The Company has grown its land positions to approximately 17,000 net acres in the Haynesville Shale play in northern Louisiana and approximately
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