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
http://blackberrystocks.blogspot.com/
Wednesday, January 28, 2009
Tuesday, January 20, 2009
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=
http://blackberrystocks.blogspot.com/
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=
http://blackberrystocks.blogspot.com/
Thursday, January 8, 2009
Bakken Shale: Dunn County North Dakota
Today, 1/8/09, Kodiak Oil & Gas ( KOG ) has come out and given an operational update on the Bakken Shale and the Sanish/Three Forks region on the Bakken Shale. They have acerage positions in Dunn County, North Dakota.
Williston Basin Operations Update -- Dunn County, North Dakota
Kodiak's exploration efforts target oil and gas production from the middle member between the upper and lower Bakken shales, which is the source rock for existing hydrocarbons. The Three Forks/Sanish Formation, a productive interval lying directly below the lower Bakken shale, is also expected to be a future exploration target. Commercial production from the Three Forks/Sanish Formation is being reported by operators in the immediate area.
The Moccasin Creek (MC) #16-34-2H well (Kodiak operates with 60% working interest [WI] and 49% net revenue interest [NRI]) recently reached total depth. The well, located in the southwestern portion of Kodiak's leasehold, was drilled to an approximate total vertical depth (TVD) of 10,350 feet and a total measured depth (TMD) of 15,525 feet. During drilling operations, the wellbore encountered oil and gas shows in the lateral. A liner was run to total depth and completion work is tentatively scheduled after drilling of the MC #16-34H well is finished. The well successfully reached TMD in 38 days, which is within the Company's initial estimate of 40 days to total depth.
The drilling rig has been skid approximately 50 feet where drilling recently commenced on the MC #16-34H well (Kodiak operates with 60% WI and 49% NRI). The MC #16-34H is projected to be drilled to a TVD of 10,350 feet and proposed TMD of 14,800 feet.
Six miles east of the Moccasin Creek wells, Kodiak has completed construction of a drilling pad for the Charging Eagle (CE) #1-22-15H and the CE #1-22-23H wells. Approximately 10 miles north of the Moccasin Creek locations, a second drill pad is being constructed for the Two Shield Butte (TSB) #16-8H and the TSB #16-8-16H wells. Kodiak operates both locations and will utilize the skid package on its rig to move between wells, minimizing mobilization time and surface disturbance. Upon completion of the MC #16-34H well, the drilling rig will be moved to one of these drilling pads.
As of January 1, 2009, Kodiak had approximately 56,000 gross and 36,000 net acres under lease on the Fort Berthoud Indian Reservation (FBIR). Kodiak operates all of its leasehold on the FBIR, with the exception of approximately 9,000 net acres that are in a participating area previously established with another operator.
Williston Basin Operations Update -- Dunn County, North Dakota
Kodiak's exploration efforts target oil and gas production from the middle member between the upper and lower Bakken shales, which is the source rock for existing hydrocarbons. The Three Forks/Sanish Formation, a productive interval lying directly below the lower Bakken shale, is also expected to be a future exploration target. Commercial production from the Three Forks/Sanish Formation is being reported by operators in the immediate area.
The Moccasin Creek (MC) #16-34-2H well (Kodiak operates with 60% working interest [WI] and 49% net revenue interest [NRI]) recently reached total depth. The well, located in the southwestern portion of Kodiak's leasehold, was drilled to an approximate total vertical depth (TVD) of 10,350 feet and a total measured depth (TMD) of 15,525 feet. During drilling operations, the wellbore encountered oil and gas shows in the lateral. A liner was run to total depth and completion work is tentatively scheduled after drilling of the MC #16-34H well is finished. The well successfully reached TMD in 38 days, which is within the Company's initial estimate of 40 days to total depth.
The drilling rig has been skid approximately 50 feet where drilling recently commenced on the MC #16-34H well (Kodiak operates with 60% WI and 49% NRI). The MC #16-34H is projected to be drilled to a TVD of 10,350 feet and proposed TMD of 14,800 feet.
Six miles east of the Moccasin Creek wells, Kodiak has completed construction of a drilling pad for the Charging Eagle (CE) #1-22-15H and the CE #1-22-23H wells. Approximately 10 miles north of the Moccasin Creek locations, a second drill pad is being constructed for the Two Shield Butte (TSB) #16-8H and the TSB #16-8-16H wells. Kodiak operates both locations and will utilize the skid package on its rig to move between wells, minimizing mobilization time and surface disturbance. Upon completion of the MC #16-34H well, the drilling rig will be moved to one of these drilling pads.
As of January 1, 2009, Kodiak had approximately 56,000 gross and 36,000 net acres under lease on the Fort Berthoud Indian Reservation (FBIR). Kodiak operates all of its leasehold on the FBIR, with the exception of approximately 9,000 net acres that are in a participating area previously established with another operator.
Wednesday, January 7, 2009
Bossier Shale: East Texas Gastar ( GST ) Hits Big!
Need more evidence that the Bossier Shale is better then the Haynesville Shale? Gastar Exploration ( GST ) came out and announced one of their Bossier Shale wells are hitting 23.0 MMCF per day of Natural Gas. This is an OUTSTANDING Well!
For those who aren't familiar with these shale plays around the USA and Canada, the Haynesville Shale is located in Louisiana and East Texas. Below the Haynesville Shale you have the Bossier Shale.
Gastar Exploration Ltd. (NYSE Alternext US:GST) and today announced that it has successfully completed its best producing well to date, the Belin #1, which was completed in two lower Bossier zones. The well is flowing at a combined initial gross sales rate of 41.2 MMcf/day on a 20/64ths inch choke with approximately 10,300 psi of flowing casing pressure. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.
"The Belin #1 is our best producer to date, and based on the high quality of the reservoir rock and the strong initial production rate, we expect it will also be our best well to date in the Hilltop area in terms of estimated recoverable reserves," said J. Russell Porter, Gastar's President and CEO.
"To put this well into perspective, our biggest producer prior to the Belin #1 was the Wildman #3, which IP'ed at 23 MMcf/day. Comparing it against the entire play, we believe the Belin #1 is among the top ten best wells reported by any producer in any area of the Bossier," he added.
"The Belin #1 contains the highest porosity rock we have drilled to date, and we believe there is high-quality reservoir rock uphole from our initial lower completions that could allow us to maintain strong flow rates well into the future."
In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth in approximately 5 to 10 days. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.
http://www.gastar.com/releasedetail.cfm?ReleaseID=357440
http://blackberrystocks.blogspot.com/
For those who aren't familiar with these shale plays around the USA and Canada, the Haynesville Shale is located in Louisiana and East Texas. Below the Haynesville Shale you have the Bossier Shale.
Gastar Exploration Ltd. (NYSE Alternext US:GST) and today announced that it has successfully completed its best producing well to date, the Belin #1, which was completed in two lower Bossier zones. The well is flowing at a combined initial gross sales rate of 41.2 MMcf/day on a 20/64ths inch choke with approximately 10,300 psi of flowing casing pressure. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin #1.
"The Belin #1 is our best producer to date, and based on the high quality of the reservoir rock and the strong initial production rate, we expect it will also be our best well to date in the Hilltop area in terms of estimated recoverable reserves," said J. Russell Porter, Gastar's President and CEO.
"To put this well into perspective, our biggest producer prior to the Belin #1 was the Wildman #3, which IP'ed at 23 MMcf/day. Comparing it against the entire play, we believe the Belin #1 is among the top ten best wells reported by any producer in any area of the Bossier," he added.
"The Belin #1 contains the highest porosity rock we have drilled to date, and we believe there is high-quality reservoir rock uphole from our initial lower completions that could allow us to maintain strong flow rates well into the future."
In addition, Gastar is currently drilling a sidetrack to the LOR #7 and expects to reach total depth in approximately 5 to 10 days. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR #7.
http://www.gastar.com/releasedetail.cfm?ReleaseID=357440
http://blackberrystocks.blogspot.com/
Haynesville Shale: Caddo Parish, Louisiana Goodrich Petroleum GDP Well
Goodrich Petroleum ( GDP ) has announced a completion of a new Haynesville Shale well in Caddo Parish Louisiana. 14.5 MMcf's!
GDP has completed its initial horizontal Haynesville Shale well, the Chesapeake Energy Corporation-operated Holland 17H-1, which tested at a rate of approximately 14.5 MMcf per day on a 24/64 inch choke with 6,000 psi. The well, which was drilled to 16,200 feet, had a horizontal displacement of approximately 4,400 feet (3,800 feet cased), and is located in the Company's Bethany-Longstreet area in Caddo Parish, Louisiana. Goodrich owns a 50% working interest in the well, Chesapeake owns 40% and Plains Exploration & Production Company owns 10%.
ANGELINA RIVER TREND
The Company has completed its Estes 2H (100% WI), a James Lime horizontal well on its Cotton South prospect area, which tested at 7.0 MMcf per day on a 35/64 inch choke with 1,500 psi.
http://phoenix.corporate-ir.net/phoenix.zhtml?c=83169&p=irol-newsArticle&ID=1240683&highlight
http://blackberrystocks.blogspot.com/
GDP has completed its initial horizontal Haynesville Shale well, the Chesapeake Energy Corporation-operated Holland 17H-1, which tested at a rate of approximately 14.5 MMcf per day on a 24/64 inch choke with 6,000 psi. The well, which was drilled to 16,200 feet, had a horizontal displacement of approximately 4,400 feet (3,800 feet cased), and is located in the Company's Bethany-Longstreet area in Caddo Parish, Louisiana. Goodrich owns a 50% working interest in the well, Chesapeake owns 40% and Plains Exploration & Production Company owns 10%.
ANGELINA RIVER TREND
The Company has completed its Estes 2H (100% WI), a James Lime horizontal well on its Cotton South prospect area, which tested at 7.0 MMcf per day on a 35/64 inch choke with 1,500 psi.
http://phoenix.corporate-ir.net/phoenix.zhtml?c=83169&p=irol-newsArticle&ID=1240683&highlight
http://blackberrystocks.blogspot.com/
Marcellus Shale: Marion West Virginia TENG 4th Well
Trans Energy ( TENG ) has announced this week that they have completed their 4th Vertical Well in the Marcellus Shale - Natural Gas Field. This latest Marcellus Shale well was drilled in Marion County, West Virginia.
Trans Energy, Inc. (OTC BB: TENG) announced today that its Blackshere #101 well in Marion County, West Virginia was successfully fraced on December 29th and is currently awaiting connection to a sales line. The Blackshere #101 is completed in the Marcellus shale, a prolific new “resource play” in Appalachia, similar to the Barnett, Fayetteville and Haynesville shales which have grown to become a significant base of hydrocarbon reserves in the United States.
James K. Abcouwer, President and CEO of Trans Energy, said “This fourth Marcellus well is located in Marion County which is the county to the east of our existing Marcellus wells and is a step out of what we consider our proven area. We are delighted with its initial indications. We are optimistic that the positive results from our three vertical wells in Wetzel County and now with our most recent completion in Marion County can be replicated throughout our acreage position in northern West Virginia. We’re now beginning a horizontal well program in yet another significant step forward for Trans Energy to properly develop its acreage position. We’re pleased to have achieved this sizeable acreage position centered on the Wetzel-Marion-Doddridge Counties area, which looks to be one of the most – if not the most – prolific part of the Marcellus resource in Appalachia.”
http://www.transenergyinc.com/pr/131.html
http://blackberrystocks.blogspot.com/
Trans Energy, Inc. (OTC BB: TENG) announced today that its Blackshere #101 well in Marion County, West Virginia was successfully fraced on December 29th and is currently awaiting connection to a sales line. The Blackshere #101 is completed in the Marcellus shale, a prolific new “resource play” in Appalachia, similar to the Barnett, Fayetteville and Haynesville shales which have grown to become a significant base of hydrocarbon reserves in the United States.
James K. Abcouwer, President and CEO of Trans Energy, said “This fourth Marcellus well is located in Marion County which is the county to the east of our existing Marcellus wells and is a step out of what we consider our proven area. We are delighted with its initial indications. We are optimistic that the positive results from our three vertical wells in Wetzel County and now with our most recent completion in Marion County can be replicated throughout our acreage position in northern West Virginia. We’re now beginning a horizontal well program in yet another significant step forward for Trans Energy to properly develop its acreage position. We’re pleased to have achieved this sizeable acreage position centered on the Wetzel-Marion-Doddridge Counties area, which looks to be one of the most – if not the most – prolific part of the Marcellus resource in Appalachia.”
http://www.transenergyinc.com/pr/131.html
http://blackberrystocks.blogspot.com/
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
http://blackberrystocks.blogspot.com/
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
http://blackberrystocks.blogspot.com/
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