Wednesday, February 18, 2009

More Horizontal Drilling Success

If there is a bright spot, (sorry seismic interpreters, no pun intended) in today's domestic oil and gas industry, it seems to lie in the area of horizontal drilling, completion and production from so-called unconventional reservoirs. The following notes are from two recent examples reported in the February 16 issue of the Oil and Gas Journal, page 36.

Note in particular the GeoResources, Inc. well in the Austin Chalk of south Texas' Giddings Field that produced 1BCF in its first 60 days of production. At $4/MCF, that equals $4 Million return in 60 days, which probably paid the cost of drilling and completing the well. Not bad, I'd say.

Petrohawk Energy Corp. of Houston is also doing very well with their wells in the Haynesville Shale Play in NW Louisiana and the Fayetteville Shale Play in Arkansas, both involving horizontal drilling. The company claims to have replaced "419 % of its production in 2008". Now that is the kind of economic stimulation we could use more of!

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