This morning we have news out of PetroHawk Energy ( HK ) and Mainland Resources ( MNLU ) regarding the Haynesville Shale. These two companies will be apart of a joint venture in the Louisiana Shale deposit known as the Haynesville Shale.
Mainland Resources, Inc. holds interest in approximately 2,695 net acres which form part of the East Holly Field in De Soto Parish, northwest Louisiana.
Under the terms of the Definitive Agreement, Petrohawk agrees to pay 100% of the costs of development associated with the first well drilled below the Cotton Valley Formation, including drilling, completing and fracture stimulating, as well as costs up to and including pipeline connection. Petrohawk also agrees to pay 80% of all costs of the second well drilled on the Leases below the base of the Cotton Valley and Mainland agrees to pay 20% of the costs. For the third, and all subsequent wells drilled on the Leases below the base of the Cotton Valley Formation, Petrohawk will pay 60% and Mainland will pay 40%.
Mainland will immediately transfer 60% of its De Soto Parish leases to Petrohawk, but only as the Leases relate to all depths below the base of the Cotton Valley Formation, and specifically the Haynesville Shale. Mainland retains rights to all Cotton Valley and Hosston formation production on these Leases. Petrohawk agrees to gather and market Mainland's production from above the base of the Cotton Valley Formation, pursuant to a mutually acceptable agreement.
Full Article - http://biz.yahoo.com/prnews/080805/latu059.html?.v=101
Tuesday, August 5, 2008
GMX Resources ( GMXR ) Haynesville Shale Update
GMXR came out with earnings last night.....here are the following Haynesville Shale highlights:
The second quarter of 2008 has marked records in production, revenue, earnings and cash flow for the Company and positions us to continue to accelerate our successful drilling program, add meaningful operated acreage in the ArkLaTex region and deliver shareholder value,'' commented Ken Kenworthy, Jr. Chairman, President and Chief Executive Officer.
``Acceleration of the Haynesville/Bossier development, funded by our growing cash flow and credit line is expected to increase the present value of our 1P & 2P reserves. We have grown our operated acreage over 130% in 2008 through July 31, 2008, including the addition of 7,300 net operated acres in Q2 and an additional 10,955 in Q3. We now operate 81% of our gas shale development and expect to add additional operated acreage in the remainder of 2008. As of July 30, 2008, the Company has 43,032 net operated acres including 38,455 acres of Haynesville/Bossier shale giving us the most Haynesville shale acres per share as compared to all other public companies. The GMXR team continues to focus on the successful development of our asset base and executing our strategy of investing in profitable growth,'' Kenworthy added.
Production for the quarter ending June 30, 2008 averaged 35.7 MMcfe per day for a total of 3.25 Bcfe. This marks the 17th consecutive quarter of production growth.
For the quarter ending June 30, 2008 GMXR drilled a total of 30 gross/19.2 net Cotton Valley and Travis Peak vertical wells. Capital expenditures for the quarter were $70.1 million. Drilling activity is expected to increase this year as the Company brings two additional third party leased rigs on-line in the second half of 2008. This will increase rigs drilling on the Company's operated acreage to six and total rig count on the property base to ten. The Company intends to drill Haynesville/Bossier horizontal shale wells with four of its six rigs beginning in the third quarter and Cotton Valley vertical wells with the remaining two. The Company expects to drill in our 100% owned acreage 4-6 gross and net Haynesville/Bossier horizontal wells in the second half of 2008. We also expect GMXR's joint development partner, Penn Virginia Oil and Gas, L.P. (``PVOG'') to drill 2 gross/.8 net Haynesville/Bossier horizontal wells in jointly owned acreage in the second half of 2008. This shift in drilling focus to Haynesville/Bossier versus Cotton Valley wells and the extended drilling time for horizontal wells will bring our planned wells to a range of 68.3 to 78.8 net wells for 2008. In 2006, GMXR and PVOG drilled and completed 19 vertical test wells across its acreage completing the Haynesville/Bossier Shale in most of the wells. These tests confirmed the presence of significant amounts of natural gas with 24 hour IP rates between 1 and 2 Mmcfe/d.
Visit http://oilshalegas.com for all the shale plays and companies drilling there!
The second quarter of 2008 has marked records in production, revenue, earnings and cash flow for the Company and positions us to continue to accelerate our successful drilling program, add meaningful operated acreage in the ArkLaTex region and deliver shareholder value,'' commented Ken Kenworthy, Jr. Chairman, President and Chief Executive Officer.
``Acceleration of the Haynesville/Bossier development, funded by our growing cash flow and credit line is expected to increase the present value of our 1P & 2P reserves. We have grown our operated acreage over 130% in 2008 through July 31, 2008, including the addition of 7,300 net operated acres in Q2 and an additional 10,955 in Q3. We now operate 81% of our gas shale development and expect to add additional operated acreage in the remainder of 2008. As of July 30, 2008, the Company has 43,032 net operated acres including 38,455 acres of Haynesville/Bossier shale giving us the most Haynesville shale acres per share as compared to all other public companies. The GMXR team continues to focus on the successful development of our asset base and executing our strategy of investing in profitable growth,'' Kenworthy added.
Production for the quarter ending June 30, 2008 averaged 35.7 MMcfe per day for a total of 3.25 Bcfe. This marks the 17th consecutive quarter of production growth.
For the quarter ending June 30, 2008 GMXR drilled a total of 30 gross/19.2 net Cotton Valley and Travis Peak vertical wells. Capital expenditures for the quarter were $70.1 million. Drilling activity is expected to increase this year as the Company brings two additional third party leased rigs on-line in the second half of 2008. This will increase rigs drilling on the Company's operated acreage to six and total rig count on the property base to ten. The Company intends to drill Haynesville/Bossier horizontal shale wells with four of its six rigs beginning in the third quarter and Cotton Valley vertical wells with the remaining two. The Company expects to drill in our 100% owned acreage 4-6 gross and net Haynesville/Bossier horizontal wells in the second half of 2008. We also expect GMXR's joint development partner, Penn Virginia Oil and Gas, L.P. (``PVOG'') to drill 2 gross/.8 net Haynesville/Bossier horizontal wells in jointly owned acreage in the second half of 2008. This shift in drilling focus to Haynesville/Bossier versus Cotton Valley wells and the extended drilling time for horizontal wells will bring our planned wells to a range of 68.3 to 78.8 net wells for 2008. In 2006, GMXR and PVOG drilled and completed 19 vertical test wells across its acreage completing the Haynesville/Bossier Shale in most of the wells. These tests confirmed the presence of significant amounts of natural gas with 24 hour IP rates between 1 and 2 Mmcfe/d.
Visit http://oilshalegas.com for all the shale plays and companies drilling there!
Monday, August 4, 2008
Montney Shale - British Columbia Natural Gas Field
The Montney Shale is attracting bids for land by large companies. Located just below the Horn River Shale in British Columbia....energy giants such as Encana are scopping up land like we are running out of natural gas.
A record 610 million dollars of land leases were made at an auction in July.
Stay tuned to see how much the August auction raises! If you thought the Haynesville Shale was hot....Canada has their own shale plays!
A record 610 million dollars of land leases were made at an auction in July.
Stay tuned to see how much the August auction raises! If you thought the Haynesville Shale was hot....Canada has their own shale plays!
Sunday, August 3, 2008
Huron Shale - Companies Drilling in Shale
The Huron Shale is located in Ohio, West Virginia, and Kentucky. Companies have been drilling in this area and finding quite a bit of natural gas. Here is a list of companies currently exploring the Lower Huron Shale. http://www.oilshalegas.com/huronshale.html
Saturday, August 2, 2008
Haynesville Shale Extending - East Texas Drilling
The Haynesville Shale is starting to be tested in other counties in East Texas. Southwestern Energy ( SWN ), a newcomer to the Haynesville Shale, will be testing Shelby and San Augustine Counties of Texas in the coming months and 2009.
For those who do not know about Southwestern Energy....these guys were the very first in the Fayetteville Shale in Arkansas. SWN is producing 500 million cubic feet per day in the Fayetteville Shale play.
This is the first i've heard this part of Texas being looked at for the Haynesville shale......keep an eye on this!
For those who do not know about Southwestern Energy....these guys were the very first in the Fayetteville Shale in Arkansas. SWN is producing 500 million cubic feet per day in the Fayetteville Shale play.
This is the first i've heard this part of Texas being looked at for the Haynesville shale......keep an eye on this!
Friday, August 1, 2008
Chseapeake CHK vs XTO Energy Haynesville Shale
Who would have thought their would be drama in shale plays? A few weeks ago, the XTO Energy CEO on the Conference Call said people who are saying that the Haynesville Shale holds 250 trillion cubic feet of natural gas are hyping this shale play.
Today the Chesapeake CEO gave research data to back this figure up and they stick to what they think is over 240 trillion cubic feet of natural gas in the Haynesville Shale. The CEO says he is not hyping this shale play, rather is going by research.
Chesapeake says the core area in the Haynesville Shale could eventually see up to 50,000 per acre.
Chesapeake Energy says they are producing 45 million cubic feet per day of natural gas from 11 wells.....
Today the Chesapeake CEO gave research data to back this figure up and they stick to what they think is over 240 trillion cubic feet of natural gas in the Haynesville Shale. The CEO says he is not hyping this shale play, rather is going by research.
Chesapeake says the core area in the Haynesville Shale could eventually see up to 50,000 per acre.
Chesapeake Energy says they are producing 45 million cubic feet per day of natural gas from 11 wells.....
Chesapeake (CHK ) Haynesville Shale Update
Chesapeake has released their earnings and details about their haynesville shale position.
Chesapeake continues to experience outstanding drilling results in its recent significant Haynesville Shale discovery in Northwest Louisiana and East Texas. Based on its geoscientific, petrophysical and engineering research during the past two years, including analysis of more than 100 wells drilled through the formation by others in the industry, as well as the results of 11 horizontal wells Chesapeake has completed to date, the company believes the Haynesville Shale play will become the largest discovery of natural gas in the U.S. Chesapeake is currently producing approximately 35 mmcfe net per day (45 mmcfe gross) from the play and anticipates reaching at least 75 mmcfe net per day by year-end 2008. Chesapeake is currently using eight operated rigs to further develop its 450,000 net acres of Haynesville Shale leasehold and anticipates operating at least 12 rigs by year-end 2008. The company continues to acquire leasehold in the play with its 20% partner, Plains Exploration & Production Company (PXP).
Chesapeake continues to experience outstanding drilling results in its recent significant Haynesville Shale discovery in Northwest Louisiana and East Texas. Based on its geoscientific, petrophysical and engineering research during the past two years, including analysis of more than 100 wells drilled through the formation by others in the industry, as well as the results of 11 horizontal wells Chesapeake has completed to date, the company believes the Haynesville Shale play will become the largest discovery of natural gas in the U.S. Chesapeake is currently producing approximately 35 mmcfe net per day (45 mmcfe gross) from the play and anticipates reaching at least 75 mmcfe net per day by year-end 2008. Chesapeake is currently using eight operated rigs to further develop its 450,000 net acres of Haynesville Shale leasehold and anticipates operating at least 12 rigs by year-end 2008. The company continues to acquire leasehold in the play with its 20% partner, Plains Exploration & Production Company (PXP).
Subscribe to:
Posts (Atom)
