Friday, January 22, 2010

Horizontal Drilling Success In Texas' Eagle Ford Shale

Horizontal Drilling and presumably hydraulic fracturing proves its worth again. Energy independence? It's there if we want it. Economic recovery? Jobs? Ditto. Quick, someone tell President Obama before every Democrat is voted out of office.

UPDATE 1-Pioneer says Eagle Ford results top expectations

Tue Jan 19, 2010 9:39am EST (Source)

Jan 19 (Reuters) - Oil and gas company Pioneer Natural Resources Inc (PXD.N) said initial production from its second well in the Eagle Ford shale in Texas beat its estimates and it is looking for a joint venture for the shale, with bids expected in the second quarter.

The company said the Robert Crawley Gas Unit z1 well flowed at an initial production rate of about 17 million cubic feet of gas per day.

"With the highest gas rate reported to date in the play, the Crawley z1 exceeded our expectations and confirms that dry gas wells provide strong economics at today's prices," CEO Scott Sheffield said in a statement.

In October, the company said its Sinor z5 well in the Eagle Ford shale saw an initial rate of about 11.3 million cubic feet of natural gas equivalent per day (mmcfed). [ID:nBNG506499]

U.S. gas producer Chesapeake Energy Corp (CHK.N) had given France's Total (TOTF.PA) the first right to negotiate a joint venture on Chesapeake's smaller position in the Eagle Ford shale play in south Texas.

Other companies have also approached Chesapeake about partnering in Eagle Ford, Chesapeake's CFO Marc Rowland told Reuters Jan. 11. [ID: nLDE60A2DA]

Pioneer shares were up 3 percent at $52.08 in early morning trade Tuesday on the New York Stock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Gopakumar Warrier)

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