Haynesville Shale - Comstock Resources (CRK) Update

By Tim -http://oilshalegas.com

Haynesville Shale Update - 2012 - Comstock Resources (CRK)

Comstock Resources (CRK) recently reported drilling results for natural gas in the Haynesville Shale.

In the East Texas/North Louisiana region, Comstock drilled 64 wells (28.3 net) during 2011, sixty-two of which were Haynesville or Bossier shale horizontal wells. During 2011, Comstock completed 84 (42.3 net) Haynesville or Bossier shale horizontal wells, including 33 wells (22.2 net) that were drilled in 2010. Wells drilled and completed in 2011 were put on production at an average per well initial production rate of 10.7 MMcfe per day. As of December 31, 2011, Comstock had 14 (9.8 net) Haynesville or Bossier horizontal wells waiting on completion.

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Reliable Energy Ltd. (REL): Bakken formation update

By Andrea: http://oilshalegas.com

Reliable Energy Ltd. (REL) recently provided initial production results from the 5-34-11-29W1 horizontal well completed in the Bakken formation on its Kirkella property in Manitoba. Drilled from 4-27-11-29W1, the 5-34 well reached total depth on November 17th, 2010 and is comprised of a 1,200 meter horizontal lateral section that encountered excellent quality Bakken reservoir throughout. The well was completed using a multi stage frac system with a total of 15 stages being fracture stimulated. This is the first well in Reliable’s horizontal drilling program to be successfully completed in its entirety and placed on production. The well commenced production on December 3rd, 2010 and has been producing continuously since. During the clean-up phase of production, the oil cut has continuously increased to 35% while total fluid production has averaged 358 bbl/day. Over the last 24 hour period, the well has produced 125 bbls (94 bbls net) of light sweet oil. The well is expected to continue to clean up and stabilize over the next several weeks and the well has been set up as a single well battery until it can be tied into our central battery at our 14-10 site.

The Company has drilled a total of 5 (4.3 net) horizontal wells to date on its Kirkella and Elkhorn properties in Manitoba. As previously announced, the Company has experienced significant issues in accessing the equipment and services necessary to complete these wells, however the Company is working closely with the frac companies to ensure availability of services in the new year. Two wells, 5-15-11-29W1 and 6-15-11- 29W1, have been partially completed and are still awaiting the conclusion of their respective frac programs. These wells are currently on production test while awaiting frac equipment. The first well, 6-15, has had eight of twenty planned fracs completed and has been on production since November 9. In December, the well has produced an average of 75 BOPD (net). The company expects the final results of the 6-15 well to be similar to the 5-34 well. The 5-15 well has just been placed on production and is currently in the initial clean-up phase of production. Further results of these production tests on the 5-15 and 6-15 wells will be released upon the completion of the frac programs. Reliable has 2 (1.5 net) wells currently awaiting commencement of their frac programs. These wells, the 6-34-11-29W1 and the 10-8-11-28W1 horizontals at Kirkella and Elkhorn respectively, are not expected to be completed and on production until January 2011.

Corporate production is currently at 600 bbls of oil per day. Based on results of the 5-34 well, management believes that there is a further minimum of 300 bbls of oil per day (net) behind pipe and awaiting completion. Reliable does not expect to have any more wells frac’d and completed prior to year end due to lack of equipment and services and, accordingly, has revised downwards its year end exit rate to 600 bbls of oil per day. Murray Swanson, President and CEO stated that ”while we are disappointed that we have been unable to complete all five horizontal wells drilled this year because of equipment availability, we are extremely encouraged by the results from the 5-34 well, which has exceeded initial expectations. Furthermore, the test results from the 5-15 and 6-15 wells indicate that once they have been completed in their entirety that we will achieve our planned production levels for these respective wells.”

Reliable has identified 142 prospective horizontal drilling locations in the Kirkella area in the Bakken and is continuing to add to this total through ongoing exploration.


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Texon Petro Ltd. (TEXOF.PK): Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Texon Petro Ltd. (TEXOF.PK) recently announced that it has finished drilling and casing its second Eagle Ford well (Teal EFS #1H). Strong oil and gas shows were observed throughout the 4,500ft of horizontal drilling within the Eagle Ford reservoir similar to the oil and gas shows in the first Eagle Ford well that has just been tested. Production casing has been run in preparation for the fracture stimulation
which has been contracted and is expected to begin in March. After this work has been
completed, the well will be production tested.

Log analysis indicates that the reservoir characteristics (porosity, permeability and oil and gas content) in the Eagle Ford in this second well (Teal EFS #1H) are similar to the reservoir properties of the Eagle Ford in recently tested Tyler Ranch EFS #1H located 5 km to the Northeast and which flowed 1,200 bopd.

There are now three wells which have flowed substantial quantities of oil from the Eagle Ford in and around Texon’s Leighton, Mosman, Rockingham and Sutton leases (“LMRS”). These wells are shown on the map i.e. Texon’s first Eagle Ford well which flowed 1,200 bopd and two Swift wells which flowed respectively 1,134 bopd and 775 bopd. These results indicate that the Eagle Ford in Texon’s LMRS leases is in a liquids rich area.

Texon has a 100% Working Interest (75% net revenue interest) in the Teal EFS #1H well.

Texon has an overall 92% Working Interest in approximately 5,000 gross acres in the LMRS leases which surround or are nearby to Texon’s first Eagle Ford well. The Eagle Ford reservoir is expected to be present throughout these leases.

Texon’s nett Eagle Ford acreage holding is 4,550 acres which could represent a resource potential of some 30-34 mmboe as to the Company’s working interest or 23–26 mmboe as to Texon’s net revenue interest in these leases.


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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.

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Range Resources Corp. (RRC) : Cana/Woodford Shale Update

By Andrea: http://oilshalegas.com

The first two completions of the 2010 drilling program in the Ardmore Basin horizontal Woodford play at depths of 7,000 feet have yielded outstanding results. One well completed for an average production rate of 801 barrels of oil and NGLs per day and 2.3 Mmcf per day or 1,176 (362 net) Boe per day. The average rate for the second completion was 1,064 barrels of oil and NGLs per day and 2.7 Mmcf per day or 1,514 (702 net) Boe per day. One operated rig is currently active in the play, along with one non-operated rig. During the quarter, the 5,000-foot deep horizontal Mississippian Lime play in northern Oklahoma recorded another strong completion with average daily production rates of 260 barrels of oil and NGLs and 900 mcf or 410 (318 net) Boe per day. Two additional wells in the play are currently drilling. In addition, Range controls approximately 80,000 (42,000 net) legacy acres that are all held by production in the emerging Cana Shale play in the Anadarko Basin. While still early, it appears that a material portion of our acreage is in the core of the play. Given that all of Range's acreage is held by production, our strategy is to take a "wait and see approach," before determining how to best exploit our acreage position.

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Range Resources Corp. (RRC) : Marcellus Shale Update

By Andrea: http://oilshalegas.com



Range Resources Corp. (RRC) recently released an update on the Marcellus shale located in Washington County, PA and Lycoming County, PA:

Range's Marcellus production exit rate for the third quarter was 191 Mmcfe per day net. Approximately 71% of the production was natural gas and 29% was NGLs and condensate. At the end of the third quarter, approximately 34 Mmcfe per day of net production was shut in waiting on gathering and compression facilities currently under construction. In addition, Range has drilled 44 wells that are waiting on completion, of which 23 are scheduled to be completed prior to year-end. Given excellent drilling results through the first nine months of the year, Range is well-positioned to meet or exceed its Marcellus Shale year-end 2010 production exit rate target of 200 to 210 Mmcfe per day net.

During the third quarter, the Marcellus Division brought online a total of 18 horizontal wells in southwestern Pennsylvania, all in the liquids-rich "wet area" of the play. The wells had average lateral lengths of 3,291 feet and averaged 11 frac stages. The initial seven-day gross production rate for the 18 wells averaged 8.5 Mmcfe per day. All 18 wells are initially producing under somewhat constrained conditions due to gathering and compression capacity, as the facilities are not designed for peak production. Based on initial production results, we expect the average estimated ultimate recovery (EUR) of these 18 wells to exceed our average reserve estimate of 5.0 Bcfe per well for the southwest portion of Pennsylvania. Given low natural gas prices, we plan to drill fewer wells per pad, utilizing moderate lateral lengths and frac stages. This will allow us to build production with lower cycle times, while efficiently developing our leasehold position and generating outstanding well economics.

Providing additional upside resource potential from this region without additional acreage costs are a variety of shale formations that lie above the Marcellus formation. Range has now drilled and completed an initial horizontal test well to the Upper Devonian shales. Our first test indicates significant gas in place. The average seven-day test rate for the initial well was 5.1 Mmcfe per day. Range plans several more Upper Devonian test wells in 2011. We believe that a majority of our acreage in the southwest portion of the play is prospective for the Upper Devonian shales.

Over the past two years, Range has concentrated its leasing activities to filling in and blocking up its key acreage positions. In addition to acquiring fill-in leases in these areas, we have completed several acreage trades with third parties. The acreage trades allow each party to block up their respective leasehold positions. Recently, Range completed a trade in which it acquired approximately 42,000 net acres in our core area of southwestern Pennsylvania. The new acreage has longer term and adds more than 500 horizontal drilling locations in Washington County, an area where infrastructure is already in place and Range has had significant drilling success. To facilitate the trade, Range transferred approximately 55,000 net acres, of which 47,000 acres are located in West Virginia and 8,000 acres are located in Bradford and Sullivan counties in northeastern Pennsylvania.

The Marcellus infrastructure build out continues to progress on schedule. In the southwestern portion of the play, committed wet gas processing capacity has increased to 185 Mmcf per day, and is scheduled to expand to 390 Mmcf per day by third quarter 2011. Range also has access to an additional 40 Mmcf per day of wet gas processing on an interruptible basis. Dry gas capacity is currently 25 Mmcf per day in southwestern Pennsylvania, increasing to 65 Mmcf per day by year-end 2010. In the northeastern portion of the play, the build out of the first phase 150 Mmcf per day Lycoming County gathering system is on schedule for a year-end 2010 start up, with capacity increasing to as much as 350 Mmcf per day by year-end 2011.

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Washington County, PA - Marcellus Shale Update

By Andrea: http://oilshalegas.com

Recently, Range Resources Corp. (RRC) released an update on the Marcellus Shale, located in Washington County, PA:

Recently, Range completed a trade in which it acquired approximately 42,000 net acres in our core area of southwestern Pennsylvania. The new acreage has longer term and adds more than 500 horizontal drilling locations in Washington County, an area where infrastructure is already in place and Range has had significant drilling success. To facilitate the trade, Range transferred approximately 55,000 net acres, of which 47,000 acres are located in West Virginia and 8,000 acres are located in Bradford and Sullivan counties in northeastern Pennsylvania.

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Rex Energy Corp. - Niobrara Shale and Marcellus Shale Update

By Andrea: http://oilshalegas.com

Rex Energy Corporation (REXX) announced today that production during the third quarter 2010 was 20.3 Mmcfe per day which was within the company's guidance of 19.0 Mmcfe per day to 21.0 Mmcfe per day.

Rex Energy also provided an operational update on its Niobrara Shale operations. The company's first well, the Silo State 41-22, was a Rex Energy farm-in well located in the southern part of the Silo Field in Laramie County, Wyoming. The company drilled an approximate 4,000 foot lateral and encountered oil and gas shows while drilling. Rex Energy performed a 13 stage fracture stimulation in late September 2010 which went as planned. During load recovering, the tubing inside casing parted and the company is currently recovering the tubing. This has caused a delay in the completion. To date Rex Energy has recovered 15% of the fracture load. The company expects to resume load recovering shortly.

The well was located with the boundaries of the Silo Field, and Rex Energy anticipated some pressure depletion prior to drilling the well. The company expects to take several additional weeks to clean up the well. The Silo State 41-22 will provide Rex Energy with valuable information on the viability of infill drilling and drainage in the DJ Basin.

Rex Energy is now drilling the Herrington Farms 1H well, its second Niobrara Shale well, and is currently at 2,500 feet of the horizontal leg which is approximately half of the total planned lateral length. The well is in east Silo Field area and will be more representative of the company's 40,000 net acres in the DJ Basin. Rex Energy is encouraged by the continuous oil and gas shows while drilling and is pleased to report it has commenced oil sales from the drill site. The company expects to reach total depth of the well this weekend with completion planned for November 2010. Rex Energy currently has four more locations with approved permits.

In Butler County, Pennsylvania, Rex Energy is currently completing the second and third Marcellus Shale horizontal wells of the six which had been drilled and awaiting completion. The company expects to have all six wells completed by early November 2010 at which time their jointly owned cryogenic gas processing facility is expected to be operational.

Rex Energy is continuing to inject chemicals in its alkali-surfactant-polymer unit in the Lawrence Field, Illinois. The company has reached injection of approximately 8% of the pore volume. This amount remains on schedule with previously provided timelines.


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Talisman Energy Inc. (TLM): Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Talisman Energy Inc. (TLM) recently announced that it has reached an agreement to acquire additional properties in the Eagle Ford shale play in south Texas. Talisman and Statoil have agreed on a joint-venture to acquire 97,000 net acres of high-quality, liquids rich Eagle Ford shale properties from Enduring Resources for a total consideration of US$1.325 billion.

"This transaction is an excellent fit with Talisman's strategy," said John A. Manzoni, President and CEO. "Talisman now has material positions in three world-class shale plays in North America. This acquisition is in the liquids rich window of the Eagle Ford and complements our existing acreage. We are very pleased to be working with Statoil, a respected global company with whom we have an excellent working relationship."

The Transaction

Talisman and Statoil have agreed to create a 50/50 joint-venture across the Eagle Ford shale play, with Talisman as the initial operator. The net cost to Talisman of this new acreage will be approximately US$485 million, after Statoil purchases a 50% working interest in Talisman's existing 37,000 net acres in the Eagle Ford. Upon completion of these transactions, Talisman will hold approximately 70,000 net acres, predominantly in the liquids rich heart of the play.

Talisman and Statoil have agreed that Statoil will operate approximately 50% of the joint assets within three years. The transaction is expected to close by year end.

The Assets

The acquisition includes 97,000 net acres of land (50/50 joint-venture between Talisman and Statoil) in the liquids rich window of the Eagle Ford shale. The purchase price equates to about US$10,900 per acre, taking into consideration Enduring's existing production of 5,500 boe/d, as well as gas processing infrastructure that comes with the acquisition. In addition, the companies have an option to jointly acquire up to an additional 22,000 net acres.

Approximately 55,000 net acres are held by existing production. There are currently three horizontal rigs operating on the leases, which is more than sufficient to hold this land. The land position consists of large contiguous blocks across the Eagle Ford, with a thick, high-porosity shale section, and high expected ultimate recovery factors (EURs). EURs are expected to average at least 660,000 boe per well.

There is currently 5,500 boe/d of production, including six Eagle Ford wells which are on-stream. An additional eight wells have been drilled; three wells are drilling, with nine additional wells planned by year-end. Initial production rates on the two most recent wells have averaged 3,700 boe/d (including 1,000 bbl/d of liquids) and 2,300 boe/d (including 425 bbl/d of liquids). There are numerous egress options available to support future production growth.

Strategic Context

The company believes there is an estimated 800 million boe of net contingent resource on the acquired properties, of which approximately 50% is expected to be condensate or natural gas liquids. Talisman estimates there are over 1,000 net drilling locations on the newly acquired acreage. The company believes that similar to its Marcellus and Montney shale plays, its Eagle Ford play will have a full-cycle break even of less than US$4 per mcf.

Shale gas and liquids development is an important part of Talisman's strategy for long-term, profitable growth. The company has established large, high-quality land positions in the Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec).

The addition of this new acreage gives Talisman a material core position in the liquids rich window of the Eagle Ford shale play. The company believes its shale plays have the critical mass needed to support Talisman's objective of becoming a leading, returns focused shale producer in North America.

The company is committed to operating in a safe, environmentally responsible manner and to maintaining good working relationships with local communities near our areas of operations.

Barclays Capital acted as an advisor to Talisman on this transaction.

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Zavala County, Texas: Austin Chalk Update

By Andrea: http://oilshalegas.com

Eagleford Energy Inc. (EFRDE.OB) has been notified by Dawsey Operating, LLC, a Texas based engineering and consulting firm, that the rig allocated to drill an initial test well of the Eagle Ford shale formation will mobilize onto location at the Company's Matthews lease in Zavala County, Texas starting tomorrow. The Company intends to drill vertically through the Eagle Ford and log key formations including the San Miguel sands, the Austin Chalk and the Eagle Ford shale. After logging, the well will be drilled approximately 4,000 feet horizontally through the Eagle Ford shale formation.

The Matthews Lease comprises 2,629 acres of land (or 4 square miles) and is situated adjacent to the Redhawk land block under development by Petrohawk Energy Corporation (HK). Eric Johnson, VP Operations at Dyami Energy LLC, a Texas based subsidiary of Eagleford Energy, stated, "Our primary target is the Eagle Ford shale. Petrohawk has reported 355 barrels a day of oil production from its horizontal well on the property next door. Given the blanket nature of the Eagle Ford formation in this area we are excited by our prospects. We also plan to run tests on the San Miguel formation to gather important petro-physical data on the significant amount of heavy oil in place."

Eagleford Energy's consolidated working interest in the well before payout is 85% (69% working interest after payout).

Zavala County, Texas is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.

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Greene County, PA - Marcellus Shale Update

By Andrea: http://oilshalegas.com

Consol Energy Inc. (CNX) recently release an update on the Marcellus Shale in Greene County, Pennsylvania:

Consol Energy Inc. (CNX), the leading diversified fuel producer in the Appalachian Basin, reported total coal production of 14.7 million tons for the quarter ended September 30, 2010. Included in the total was 1.3 million tons of low-vol coal produced by the company's Buchanan Mine.

CONSOL's Gas Division achieved record quarterly production of 35.8 Bcf for the quarter ended September 30, 2010. This was 44% higher than the 24.8 Bcf produced in last year's September quarter, and 12% higher than the 31.9 Bcf produced in the quarter ended June 30, 2010.

The Gas Division began the quarter with one horizontal rig running in Greene County, Pennsylvania and ended the quarter with three horizontal rigs operating. The original horizontal rig left its base in Greene County, in order to drill in nearby Belmont County, Ohio. Beginning at a depth of 8,450 feet, the rig encountered 200 feet of Utica Shale. The vertical well, un-stimulated, flowed 1.5 MMCF of gas in a 24-hour period.

CONSOL Energy has over 70,000 acres in and around the discovery well in Belmont County. "While most of our delineation efforts are focused on the Marcellus Shale," commented J. Brett Harvey, Chairman and CEO, "our vast acreage holdings include other zones that warrant testing, including the Utica Shale. As a result of this discovery, we will shift some of our exploration capital to this shale in 2011."

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Carrizo Oil and Gas Inc. - Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Carrizo Oil and Gas Inc. (CRZO) recently released an operational update on the Eagle Ford Shale, located in La Salle County, Texas:

During the third quarter, the company drilled and cased three Eagle Ford Shale horizontal wells and is currently drilling the horizontal leg in a fourth. Following the completion of drilling and casing activities on this well, the drilling rig will be moved to a location in close proximity to the El Paso Hixon #1 to spud a fifth well. The first three wells are being prepared for hydraulic fracture stimulation, which is expected to begin in the third week of October. The fourth and fifth wells are expected to be stimulated and completed in succession following the completion of the first three. These Eagle Ford wells are all located in the condensate window in central La Salle County, Texas.

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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)

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Denton County, TX: Barnett Shale Update

By Andrea: http://oilshalegas.com

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

-Devon Energy Production (DVN): horizontal off Swafford Road, north of Farm Roads 156/407.
-Williams Production Gulf Coast L.P., Fort Worth: horizontal off Red Rock Lane, south of I-35W/Texas 114.

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Tarrant County, TX: Barnett Shale

By Andrea: http://oilshalegas.com

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

-Carrizo Oil & Gas (CRZO), Houston
-Chesapeake Operating (CHK), Oklahoma City
-Devon Energy Production Co. (DVN), Oklahoma City
-XTO Energy (COH), Fort Worth

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Marshall County, West Virginia: Marcellus Shale Update

By Andrea: http://oilshalegas.com

Trans Energy, Inc. (TENG) announced today that it has begun drilling the Stout #2H well in Marshall County, West Virginia. The Stout #2H will be drilled and completed horizontally in the Marcellus shale.

John G. Corp, President of Trans Energy, said, “We plan to drill four additional horizontal Marcellus wells in Marshall County in 2010 beginning with the Stout #2H. Moving to a development phase from an exploration phase is another significant step forward for Trans Energy to properly develop its acreage position in northern West Virginia.”

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Noble Energy, Inc - Niobrara Shale Update

By Andrea: http://oilshalegas.com

Noble Energy, Inc. (NBL) is beginning to make a huge impact in the Niobrara Shale and they will continue their growth in 3Q 2010:

To date, Noble Energy Inc. (NBL) has drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg. Eight of the Wattenberg wells are now on production with two awaiting completion operations. As they continue to step out to the north and the eastern portions of the Wattenberg field, Noble Energy is encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.

Starting in September, the company expects to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day.

In the Grover area, the first two horizontal wells were recently drilled and are undergoing completion operations. Noble Energy will keep one of the two current horizontal rigs in Wattenberg the rest of the year and the other rig will move between Wattenberg and the Grover area.

In southern Wyoming, the company is also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, their horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end. Along with the ongoing 3D seismic activity, production monitoring and additional reservoir evaluation work, Noble Energy should be in a good position by the end of the year to assess the expansion plans for this area. Overall, the company is currently operating 13 rigs in their onshore US program. Five of those rigs are conducting horizontal operations and eight are drilling vertical wells.

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Caddo Parish, LA : Haynesville Shale Update

By Andrea: http://oilshalegas.com

Cubic Energy Inc. (QBC) announced today that they spud their 4th horizontal well today in the Haynesville shale:

Cubic Energy Inc. (QBC) announced that the Red Oak Timber 7-1 ALT spud on August 6, 2010 with surface casing set at 1,903 feet. This well is located in Section 7, Township 14 North Range 15 West in Caddo Parish, Louisiana located in Cubic s Bethany Longstreet acreage. Cubic has an estimated 29% working interest in this well.

Calvin Wallen III, Cubic’s CEO and President, stated, "This is Cubic’s fourth Horizontal Haynesville Shale well to be drilled under our existing drilling credit and the sixteenth Horizontal Haynesville Shale well in which Cubic has a working interest."

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 Louisiana and Texas.

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Lea County, NM; Eddy County, NM: Avalon Shale Update

By Andrea: http://oilshalegas.com

EOG Resources Inc. (EOG) recently researched Avalon Shale potential across their 120,000 net acres in the Red Hill areas of Lea and Eddy counties, New Mexico. They believe that the recovery potential is 65 million bbl of oil equivalent. They based their estimate on 7 horizontal and 4 vertical wells that they have already drilled. They stated that the typical horizontal recovery potential is estimated at 400,000 net boe for $6.5 million per well, or a 40% direct after-tax reinvestment rate of return. EOG has been testing Avalon shale play for more than 1 year and they have production history of more than 300 days from one well.

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Wayne County, PA: Marcellus Shale Update

By Andrea: http://oilshalegas.com

August 16, 2010: Despite the natural gas drilling ban imposed on Wayne County, PA, Hess Corporation (HES) has already acquired permits for roughly 6 hydraulically fractured Marcellus Shale wells in Wayne County. Hess entered a joint-development partnership with Newfield Exploration Co. (NFX) and together, they own approximately 100,000 acres in northern Wayne County, PA. They received approval in late June and July from the Susquehanna River Basin Commission and DEP to drill 3 Marcellus Shale wells in the Susquehanna watershed. The permits include Scott and Preston townships, as well as Starucca Borough. The company plans to drill horizontal natural gas wells according to the permit applications.

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