As you know, Pennsylvania has really cracked down on companies who are drilling in the Marcellus Shale as they do not want to contaminate the environment from the result of bad drilling practices.
One company, Equitable Resources ( EQT ), is starting a project to recycle frac water located in the Marcellus Shale. Equitable hopes to have this project done by the third quarter of 2009.
What is frac water? There are many different way to drill a natural gas shale well. The most common way it to blast a fresh water/sand combination at the shale it self in order to fracture it. Once this process is completed, the water becomes contaminated. It must be pumped back out and stored. To prevent a potential water shortage, Equitable is trying to recycle the water so it can be used over again.
( From Seeking Alpha ) - And then the last question is with the change in the administration and Congress, we are hearing some noise about on the environmental issues, water, and even possible making some noise about regulating fracture stimulation. Any thoughts on that?
Unidentified Company Representative
Well, yes, I’ll save the obvious ones, but what we are going to do, and I mentioned this a few times on the road recently, is we are in the process of building a recycling plant for Marcellus, water handling, we hope it will be up in the third quarter, or maybe a little earlier during this year. We are going to try to recycle that water.
Now that doesn’t address, which is the one concern that some people have that we are hurting the aquifer with salt water from the cracks. I hope adults will finally come to the conclusion that we've been doing that for 70 years now, and haven't damaged any aquifer, but forget about all that, we are trying to recycle as much of that frac water as we possibly can.
And, you know, drill more wells from the same pad so that you can reuse the water. We are going to do pan drilling, it is going to help in the Marcellus, recycling is going to help in the Marcellus, but we are focusing more of our attention on the disposal of the water, rather than the acquisition of the water.
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Friday, January 30, 2009
Woodford Shale: Newfield Exploration NFX 2009
Newfield Exploration ( NFX ) has come out and given an operational update on the Woodford Shale located in Oklahoma.
The Woodford Shale, located in the Arkoma Basin of southeastern Oklahoma, was Newfield's largest investment region in 2008 and will remain so in 2009. Total Woodford production in 2008 increased 65% over 2007 volumes. Gross operated production from the Woodford in early December exceeded the Company's year-end goal of 250 MMcfe/d. Due to longer lateral completions and efficiency gains, Newfield expects to grow its 2009 Woodford production by about 30%, despite running fewer operated rigs.
"The positive benefits of moving from the 'hold the ground' phase in the Woodford to development mode in 2008 is obvious from the improvement in our finding costs in the Mid-Continent," said Lee K. Boothby, Newfield Senior Vice President. "Our drilling and completion costs in 2008, stated on a lateral foot basis, were 38% lower than in 2007. We have drilled about 250 horizontal wells to date and our lateral lengths continue to grow. We now expect that our average lateral length in 2009 will be about 5,000', compared to just 2,428' in 2007 and 4,436' in 2008. This should result in higher initial production rates, greater recoveries per well and improved finding cost metrics."
http://phx.corporate-ir.net/phoenix.zhtml?c=63798&p=irol-newsArticle&ID=1250144&highlight=
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The Woodford Shale, located in the Arkoma Basin of southeastern Oklahoma, was Newfield's largest investment region in 2008 and will remain so in 2009. Total Woodford production in 2008 increased 65% over 2007 volumes. Gross operated production from the Woodford in early December exceeded the Company's year-end goal of 250 MMcfe/d. Due to longer lateral completions and efficiency gains, Newfield expects to grow its 2009 Woodford production by about 30%, despite running fewer operated rigs.
"The positive benefits of moving from the 'hold the ground' phase in the Woodford to development mode in 2008 is obvious from the improvement in our finding costs in the Mid-Continent," said Lee K. Boothby, Newfield Senior Vice President. "Our drilling and completion costs in 2008, stated on a lateral foot basis, were 38% lower than in 2007. We have drilled about 250 horizontal wells to date and our lateral lengths continue to grow. We now expect that our average lateral length in 2009 will be about 5,000', compared to just 2,428' in 2007 and 4,436' in 2008. This should result in higher initial production rates, greater recoveries per well and improved finding cost metrics."
http://phx.corporate-ir.net/phoenix.zhtml?c=63798&p=irol-newsArticle&ID=1250144&highlight=
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Thursday, January 29, 2009
Woodford Shale: PQ Petroquest 2009
Petroquest Energy released earnings this morning and gave investors an operational update on how the Woodford Shale is going. January 29, 2009
As previously announced, the Company completed two operated horizontal wells in the Woodford Shale during October 2008. The Company recently completed three additional operated horizontal wells during the fourth quarter of 2008. The following is a summary of the results:
In addition to the above completions, the Company initiated completion operations on its 7,057 foot extended lateral well. After conducting two stages of the completion, the wellbore encountered mechanical problems. The Company has repaired the wellbore and the first two stages began producing at rates as high as 3,695 Mcf. The Company plans to conduct the remaining 16 stages of the completion during 2009. The Company estimates that its current net production from its Oklahoma properties is approximately 40 MMcfe per day.
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As previously announced, the Company completed two operated horizontal wells in the Woodford Shale during October 2008. The Company recently completed three additional operated horizontal wells during the fourth quarter of 2008. The following is a summary of the results:
In addition to the above completions, the Company initiated completion operations on its 7,057 foot extended lateral well. After conducting two stages of the completion, the wellbore encountered mechanical problems. The Company has repaired the wellbore and the first two stages began producing at rates as high as 3,695 Mcf. The Company plans to conduct the remaining 16 stages of the completion during 2009. The Company estimates that its current net production from its Oklahoma properties is approximately 40 MMcfe per day.
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Wednesday, January 28, 2009
Marcellus Shale: Clearfield County PA 2009
Carrizo Oil & Gas provided an update on the Marcellus Shale for 2009. Carrizo is looking to start drilling in Clearfield County, PA in March of 2009.
Carrizo's activity in the Marcellus Shale is shifting from lease acquisition to evaluation drilling. In addition to two wells drilled through the Marcellus in late 2008, seven wells are currently in the permitting stage. The company expects to initiate drilling on its acreage in March starting with a well in Clearfield, PA.
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Carrizo's activity in the Marcellus Shale is shifting from lease acquisition to evaluation drilling. In addition to two wells drilled through the Marcellus in late 2008, seven wells are currently in the permitting stage. The company expects to initiate drilling on its acreage in March starting with a well in Clearfield, PA.
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Barnett Shale - Tarrant Denton County Texas
Today, 1/28/09, Carrizo Oil & Gas provided an update on the Barnett Shale natural gas field located in Tarrant County, TX and Denton County Texas.
Since January 1st, 2009 the company has brought eleven new Barnett Shale horizontal natural gas wells on production. The combined daily production from these wells amounts to slightly over 31.5 MMcfe/day gross or 22 MMcfe/day net to Carrizo. President and CEO S. P. "Chip" Johnson, commented, "The initial production rates from these wells meet our expectations for core Barnett locations although right of way and permitting complications delayed them from coming on-stream in December as originally anticipated. Included in these new wells is our first 'stagger stacked' lateral well which was drilled on the Cain lease in southeast Tarrant County. This well tests the concept of placing two layers of horizontal wells in thicker parts of the shale. The well came on production and is performing as well as the other five wells on the lease, providing us encouraging early data to use in optimizing our future Barnett exploitation program. We currently have four rigs drilling in the core of the Barnett, three in southeast Tarrant County and one in Denton County."
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Since January 1st, 2009 the company has brought eleven new Barnett Shale horizontal natural gas wells on production. The combined daily production from these wells amounts to slightly over 31.5 MMcfe/day gross or 22 MMcfe/day net to Carrizo. President and CEO S. P. "Chip" Johnson, commented, "The initial production rates from these wells meet our expectations for core Barnett locations although right of way and permitting complications delayed them from coming on-stream in December as originally anticipated. Included in these new wells is our first 'stagger stacked' lateral well which was drilled on the Cain lease in southeast Tarrant County. This well tests the concept of placing two layers of horizontal wells in thicker parts of the shale. The well came on production and is performing as well as the other five wells on the lease, providing us encouraging early data to use in optimizing our future Barnett exploitation program. We currently have four rigs drilling in the core of the Barnett, three in southeast Tarrant County and one in Denton County."
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Bakken Shale: Hess ( HES ) January 29, 2009
Hess ( HES ) released earnings 1/28/09 and commented a little bit on the Bakken Shale.
( From Seeking Alpha ) - The Bakken contributed about 13% of the total net reserve adds at the end of the year and that’s both a consequence of performance as well as drilling so we’ve been very pleased with our experience in the Bakken. We’ve obviously shifted downwards in the Bakken in terms of drilling activity at this time because we were really ramped up and growing and going during 2008. So, we actually welcome the opportunity to take a more studied approach to the Bakken.
With respect to profitability and the Bakken is profitable right now and I expect that in this environment as we see as John Rielly mentioned pressures on contractors and suppliers to reduce costs, that we will continue to be profitable even should crude prices continue downwards.
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( From Seeking Alpha ) - The Bakken contributed about 13% of the total net reserve adds at the end of the year and that’s both a consequence of performance as well as drilling so we’ve been very pleased with our experience in the Bakken. We’ve obviously shifted downwards in the Bakken in terms of drilling activity at this time because we were really ramped up and growing and going during 2008. So, we actually welcome the opportunity to take a more studied approach to the Bakken.
With respect to profitability and the Bakken is profitable right now and I expect that in this environment as we see as John Rielly mentioned pressures on contractors and suppliers to reduce costs, that we will continue to be profitable even should crude prices continue downwards.
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Haynesville Shale: Caddo Parish, Louisiana - Cubic Energy
Today, 1/28/09, Cubic Energy ( QBC ) has come out and given an updates on an additional well being drilled in the Haynesville Shale. This well is located in Caddo Parish, LA.
Cubic Energy (QBC) announces today it has accepted a proposal to participate in the horizontal drilling of Chesapeake Energy's ( CHK ) Clingman Acres 11H well. This well is located in the Johnson Branch Field of Caddo Parish, Louisiana, and will be horizontally drilled to a measured depth of 17,000 feet, followed by a Haynesville Shale completion.
The Clingman Acres 11H is located in Section 11, Township 15 North - Range 15 West in Caddo Parish, Louisiana, which is adjacent to the east side of Cubic's Johnson Branch Acreage. Cubic has an estimated 2.8% working interest in the well.
Cubic currently has 12 wells producing in its Johnson Branch acreage, and 10 wells producing in its more southern acreage position of Bethany Longstreet in DeSoto Parish, Louisiana.
Calvin Wallen III, Cubic's President and Chief Executive Officer stated, ``The Clingman Acres 11H will be located on the eastern edge of Cubic's Johnson Branch Acreage. This area has been proven, through Cubic's vertical drilling and Chesapeake's horizontal drilling, to be extremely prolific in the Haynesville Shale. We are very excited to have yet another opportunity for Horizontal Haynesville Shale development.''
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 Texas and Louisiana.
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Cubic Energy (QBC) announces today it has accepted a proposal to participate in the horizontal drilling of Chesapeake Energy's ( CHK ) Clingman Acres 11H well. This well is located in the Johnson Branch Field of Caddo Parish, Louisiana, and will be horizontally drilled to a measured depth of 17,000 feet, followed by a Haynesville Shale completion.
The Clingman Acres 11H is located in Section 11, Township 15 North - Range 15 West in Caddo Parish, Louisiana, which is adjacent to the east side of Cubic's Johnson Branch Acreage. Cubic has an estimated 2.8% working interest in the well.
Cubic currently has 12 wells producing in its Johnson Branch acreage, and 10 wells producing in its more southern acreage position of Bethany Longstreet in DeSoto Parish, Louisiana.
Calvin Wallen III, Cubic's President and Chief Executive Officer stated, ``The Clingman Acres 11H will be located on the eastern edge of Cubic's Johnson Branch Acreage. This area has been proven, through Cubic's vertical drilling and Chesapeake's horizontal drilling, to be extremely prolific in the Haynesville Shale. We are very excited to have yet another opportunity for Horizontal Haynesville Shale development.''
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 Texas and Louisiana.
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