Consider the following facts and figures. The numbers of wells drilled, their success rate, and production rates all demonstrate a very skilled operation. The follwing comes from Petrohawk's own website here.
Peter
Petrohawk Provides Fourth Quarter Operational Update (2008)
Final Proved Reserves up 34% Year Over Year at 1.42 Tcfe, 419% of Production Replaced Haynesville Shale Gross Operated Production Reaches 160 Mmcfe/d
HOUSTON, Feb. 3 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) provided its fourth quarter 2008 operational update, including additional drilling results in the Haynesville Shale and proved reserves for year-end 2008.
During the fourth quarter, Petrohawk drilled 218 wells, with a success rate of 98%. On average, 32 operated rigs and 15 non-operated rigs were running during the quarter, including a combination of spudder rigs and horizontal rigs in both the Haynesville Shale and Fayetteville Shale development programs. For 2008, Petrohawk drilled 739 total wells, also with a success rate of 98%.
Production for the fourth quarter was approximately 361 million cubic feet of natural gas equivalent (Mmcfe/d), a 15% quarter over quarter increase and a 52% increase over fourth quarter 2007, on a pro forma basis. Petrohawk exited the quarter producing approximately 400 Mmcfe/d. Full year 2008 production was approximately 305 Mmcfe/d.
strong>Haynesville Shale
Petrohawk recently placed four additional wells online utilizing production practices consistent with previously reported wells. The initial production rates of these wells averaged 17.7 Mmcfe/d, detailed as follows:
The Mack Hogan #4 (Bossier Parish, Section 3, 16N, 11W) had an initial production rate of 13.4 Mmcfe/d on a 24/64" choke with 6,350# flowing casing pressure.
The Osborne 8 #3H (Bossier Parish, Section 8, 16N, 11W) had an initial production rate of 18.8 Mmcfe/d on a 24/64" choke with 6,800# flowing casing pressure.
The Roos "A" #5 (Bossier Parish, Section 3, 16N, 11W) had an initial production rate of 15.1 Mmcfe/d on a 24/64" choke with 6,100# flowing casing pressure.
The Griffith 11 #1 (DeSoto Parish, Section 11, 13N, 14W) had an initial production rate of 23.3 Mmcfe/d on a 28/64" choke with 7,550# flowing casing pressure. This well is a significant step-out to the southwest from existing completions.
Two Haynesville Shale completions, the Sample 4 #1 and the R.E. Smith Jr. 32 #1, experienced mechanical problems that resulted in lower than expected initial production rates. On the Sample 4 #1, a valve malfunctioned following completion, causing casing damage in the lateral portion of the well. The Company elected to produce the well on a 12/64" choke as a precaution against further wellbore damage. This well had an initial production rate of 5.4 Mmcfe/d with 7,020# flowing casing pressure. The R.E. Smith Jr. 32 #1 screened out halfway through completion due to the inadvertent firing of a perforating gun in the curve of the lateral. With only six stages of fracture stimulation, this well had an initial production rate of 11.1 Mmcfe/d on a 20/64" choke with 5,900# flowing casing pressure.
The Company is currently producing approximately 160 Mmcfe/d gross from the Haynesville Shale with 16 operated wells on production. Eleven operated wells have been on production 30 days or more, averaging 15.2 Mmcfe/d over their first 30 days of production. Eight operated wells have been on production 60 days or more, averaging 13.2 Mmcfe/d over their first 60 days of production. The four wells on production greater than 90 days have averaged 8.8 Mmcfe/d over their first 90 days of production. All operated wells to date have been produced utilizing similar production practices. During 2009, Petrohawk will conduct a pilot program on certain wells whereby production practices will be altered to restrict production by utilizing smaller choke sizes. The Company will monitor this subset of wells for effects on decline rate and mechanical operation.
Petrohawk's current drilling and completion methodology focuses on completing wells with longer laterals and maximizing the number of frac stages, spaced approximately 325 feet apart. The objective of this technique is to minimize the total number of wells required to effectively drain the reservoir, resulting in lower overall development costs. The Company is currently targeting lateral lengths between 4,300' and 4,600' with up to 15 frac stages. Petrohawk's first four completions averaged 3,339' in lateral length with 10 frac stages while the last twelve completions have averaged 3,958' in lateral length and 12 stages (with the exception of the R.E. Smith Jr 32 #3, which had down hole mechanical issues and only six frac stages).
During 2008, the Company utilized a "pre-drill" program whereby smaller, "spudder" rigs drilled the vertical portion of the wellbore in advance of horizontal rigs moving in to drill the lateral. At year end 2008, Petrohawk had eleven operated horizontal rigs running in the Haynesville Shale. The Company expects spud-to-first sales to average approximately 75 days during 2009, assuming longer laterals are drilled.
Petrohawk has budgeted $690 million for Haynesville Shale drilling in 2009. Seventy-five to eighty gross operated wells are budgeted, with approximately 6 wells expected to be completed per month. The Company expects to operate an average of 12 rigs in the play in 2009 with an emphasis on holding operated acreage.
Eagle Ford Shale
A second well in Petrohawk's Eagle Ford Shale discovery in South Texas, formally known as Hawkville Field, was completed in mid-January. The Dora Martin #1H, located approximately 14 miles west of the Company's first Eagle Ford Shale well, tested at a rate of 8.3 Mmcfe/d on a 22/64" choke with 4,610# flowing casing pressure. The well was drilled to a true vertical depth of approximately 11,000' and had a lateral length of 4,300' with 12 stages of fracture stimulation. The Company has also reached total depth on its third well, the Donnell #1H. Completion is scheduled for mid-February. Petrohawk is currently running one rig in the play with drilling and completion expected to average 50 days.
Fayetteville Shale
During the fourth quarter, Petrohawk drilled 44 operated and 74 non-operated wells in the Fayetteville Shale. Of 143 horizontal wells drilled during 2008, 113 had state test data available at December 31, 12 were waiting on state tests to be performed, and 18 were waiting on completion due to the delayed in-operation date of the Boardwalk pipeline. Current gross operated production in the Fayetteville Shale reached approximately 145 Mmcfe/d as of December 31, 2008.
Throughout 2008, the Company experienced significant operational improvements in the results of its completions, primarily as a result of drilling longer laterals with cemented liners. This supported by the following data comparing first quarter 2008 and fourth quarter 2008 techniques and results as follows:
Percentage of cemented liners increased from 4% in the first quarter to 100% in the fourth quarter.
Average lateral length increased from 2,286' in the first quarter to 2,655' in the fourth quarter, a 16% increase.
Average number of frac stages increased from 6.0 in the first quarter to 7.6 in the fourth quarter, a 27% increase.
Average state initial production test rate increased from 1.919 Mmcfe/d in the first quarter to 2.456 in Mmcfe/d in the fourth quarter, a 28% increase.
Percentage of completions that tested greater than 3 Mmcfe/d increased from 12% in the first quarter to 54% in the fourth quarter, with 2 wells in the second half of 2008 testing greater than 5 Mmcfe/d.
Price realizations and overall production from the Fayetteville Shale were impacted in the fourth quarter by a delay in the completion of a new third-party pipeline, which increased demand on other transportation lines servicing the play, causing wider than normal basis differentials. Production was either sold at lower than normal prices or shut in at various times during the quarter as a result of these market conditions. The new pipeline, constructed by Boardwalk Pipeline Partners LP, is currently in service and the Company currently expects no additional transportation constraints on its production in the area.
New Gathering Subsidiary - Hawk Field Services, LLC
During 2008, Petrohawk initiated construction of its own gathering systems servicing the Company's as well as third party production in the Fayetteville Shale and Haynesville Shale. Operating under a new subsidiary, Hawk Field Services, LLC, Petrohawk constructed approximately 100 miles of gathering lines in the Fayetteville Shale in 2008, with approximately 150 miles of gathering lines currently in service, under construction or planned in the Haynesville Shale during 2009.
Petrohawk Fourth Quarter and Full Year 2008 Earnings Conference Call
Petrohawk has scheduled a conference call for Wednesday, February 25, 2009 at 9:30 a.m. CDT (10:30 a.m. EDT) to discuss fourth quarter and full year 2008 financial and operating results. To access, dial 800-644-8607 five to ten minutes before the call begins. Please reference Petrohawk Energy Conference ID 81822729. International callers may also participate by dialing 706-679-8184. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until March 11, 2009. To access the replay, please dial 800-642-1687 and reference conference ID 81822729. International callers may listen to a playback by dialing 706-645-9291. In addition, the call will be webcast live on Petrohawk's website at http://www.petrohawk.com/. A replay of the call will be available at that site through March 11, 2008.
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in North Louisiana, Arkansas, East Texas, Oklahoma and the Permian basin.
For more information contact Joan Dunlap, Vice President - Investor Relations, at 832-204-2737 or jdunlap@petrohawk.com. For additional information about Petrohawk, please visit our website at http://www.petrohawk.com/.
Friday, February 20, 2009
Some Incredible Gas Wells In The Haynesville Shale
Undoubtedly these are horizontal wells by Petrohawk. It is easy to understand the excitement over the potential of the Haynesville Shale Gas Play.
Peter
Petrohawk Announces Three New Haynesville Shale Wells Placed on Production at a Combined Rate of 73 Mmcfe/d
HOUSTON, Dec. 9 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) has placed three additional Haynesville Shale wells on production at a combined rate of 73 Mmcfe/d, one with the highest reported initial production rate of any well in Petrohawk's history, as follows:
--The Brown 17 #4 (69% W.I.), located in Section 17-T16N-R11W, Bossier Parish, Louisiana, was completed on November 18 and produced at a rate of 23.4 Mmcfe/d on a 26/64" choke with 7,700# flowing casing pressure.
--The Goodwin 9 #5 (97% W.I.), located in Section 9-T16N-R11W, Bossier Parish, Louisiana, was completed on November 25 and produced at a rate of 21.1 Mmcfe/d on a 26/64" choke with 6,750# flowing casing pressure.
--The Sample 9 #1 (100% W.I.) is located in Section 9-T14N-R11W, Red River Parish, Louisiana, approximately 12 miles south of Elm Grove Field. It was completed on November 27 and produced at a rate of 28.2 Mmcfe/d on a 30/64" choke with 7,100# flowing casing pressure.
The Company expects to complete five additional Haynesville Shale wells by the end of the year.
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in Northwest Louisiana and East Texas (Haynesville / Bossier Shale and Cotton Valley), Arkansas (Fayetteville Shale), South Texas (Eagle Ford Shale), Oklahoma and the Permian basin.
For more information contact Joan Dunlap, Vice President - Investor Relations, at 832-204-2737 or jdunlap@petrohawk.com. For additional information about Petrohawk, please visit our website at http://www.petrohawk.com/.
Peter
Petrohawk Announces Three New Haynesville Shale Wells Placed on Production at a Combined Rate of 73 Mmcfe/d
HOUSTON, Dec. 9 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) has placed three additional Haynesville Shale wells on production at a combined rate of 73 Mmcfe/d, one with the highest reported initial production rate of any well in Petrohawk's history, as follows:
--The Brown 17 #4 (69% W.I.), located in Section 17-T16N-R11W, Bossier Parish, Louisiana, was completed on November 18 and produced at a rate of 23.4 Mmcfe/d on a 26/64" choke with 7,700# flowing casing pressure.
--The Goodwin 9 #5 (97% W.I.), located in Section 9-T16N-R11W, Bossier Parish, Louisiana, was completed on November 25 and produced at a rate of 21.1 Mmcfe/d on a 26/64" choke with 6,750# flowing casing pressure.
--The Sample 9 #1 (100% W.I.) is located in Section 9-T14N-R11W, Red River Parish, Louisiana, approximately 12 miles south of Elm Grove Field. It was completed on November 27 and produced at a rate of 28.2 Mmcfe/d on a 30/64" choke with 7,100# flowing casing pressure.
The Company expects to complete five additional Haynesville Shale wells by the end of the year.
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in Northwest Louisiana and East Texas (Haynesville / Bossier Shale and Cotton Valley), Arkansas (Fayetteville Shale), South Texas (Eagle Ford Shale), Oklahoma and the Permian basin.
For more information contact Joan Dunlap, Vice President - Investor Relations, at 832-204-2737 or jdunlap@petrohawk.com. For additional information about Petrohawk, please visit our website at http://www.petrohawk.com/.
Wednesday, February 18, 2009
Another Very Long Horizontal Well
Apparently this is well in the North Sea holds the previous record for the longest well drilled. It is impressive by any standards. I wonder who and how the interpretation of where
Peter
Gulltopp is world record well
By Billy Youngson Filed from Aberdeen 4/14/2008 5:02:05 PM GMT (source)
NORWAY: StatoilHydro has successfully completed the most complicated well in the company's history, and has set a record for the longest producing well in the world drilled from an offshore platform.
At almost 10 kilometres (6.2 miles) long and almost completely horizontal, the Gulltopp well on the Gullfaks field has seen hydrocarbons flowing up through the well at 9,910 metres (32,513 ft).
StatoilHydro Head of Operations West Arne Sigve Nylund said, "This is a day of rejoicing both for Gullfaks and StatoilHydro. We were aware of the risk that Gulltopp drilling from the platform might fail. This makes it extra great that we today have successfully completed the company's most demanding drilling operation."
The experience gained by StatoilHydro is very valuable to the further development of both remote prospects at Gullfaks and on other fields in the company's portfolio.
"The increased range that we now envisage for platform drilling opens up new perspectives for effective exploitation of existing infrastructure, and thus increased producing life," Nylund says.
Gulltopp will, together with other prospects in the area, secure continued Gullfaks operations towards 2030. An extensive plan for how to extend the life of the field, which came on stream back in 1986, has been developed.
The 10 kilometre (6.2 mile) drill pipe was controlled from the drilling rig at the sea surface. It was run 150 metres (492 ft) down to the seabed, and then kilometre after kilometre through various types of rock strata.
The longer the drill pipe is, the more difficult it is to control the forces that are transferred to the drill bit down in the deep, thousands of metres away. This requires great attention and skills by personnel in charge of drilling.
"The Gulltopp well has been a great technological challenge, and was possible thanks to high professional skills among our own drilling and well personnel, in addition to crucial contribution by the involved suppliers," said Geir Slora, head of drilling and wells in StatoilHydro.
Peter
Gulltopp is world record well
By Billy Youngson Filed from Aberdeen 4/14/2008 5:02:05 PM GMT (source)
NORWAY: StatoilHydro has successfully completed the most complicated well in the company's history, and has set a record for the longest producing well in the world drilled from an offshore platform.
At almost 10 kilometres (6.2 miles) long and almost completely horizontal, the Gulltopp well on the Gullfaks field has seen hydrocarbons flowing up through the well at 9,910 metres (32,513 ft).
StatoilHydro Head of Operations West Arne Sigve Nylund said, "This is a day of rejoicing both for Gullfaks and StatoilHydro. We were aware of the risk that Gulltopp drilling from the platform might fail. This makes it extra great that we today have successfully completed the company's most demanding drilling operation."
The experience gained by StatoilHydro is very valuable to the further development of both remote prospects at Gullfaks and on other fields in the company's portfolio.
"The increased range that we now envisage for platform drilling opens up new perspectives for effective exploitation of existing infrastructure, and thus increased producing life," Nylund says.
Gulltopp will, together with other prospects in the area, secure continued Gullfaks operations towards 2030. An extensive plan for how to extend the life of the field, which came on stream back in 1986, has been developed.
The 10 kilometre (6.2 mile) drill pipe was controlled from the drilling rig at the sea surface. It was run 150 metres (492 ft) down to the seabed, and then kilometre after kilometre through various types of rock strata.
The longer the drill pipe is, the more difficult it is to control the forces that are transferred to the drill bit down in the deep, thousands of metres away. This requires great attention and skills by personnel in charge of drilling.
"The Gulltopp well has been a great technological challenge, and was possible thanks to high professional skills among our own drilling and well personnel, in addition to crucial contribution by the involved suppliers," said Geir Slora, head of drilling and wells in StatoilHydro.
New Horizontal Drilling Record: 35,770 Feet!
Imagine logging, interpreting, setting casing, perforating, and fracing a horizontal section of a well 35,770 long? Amazing.
Peter
Transocean rig breaks world drilling record
Filed from Houston 5/21/2008 1:51:37 PM GMT (source)
QATAR: Offshore drilling contractor Transocean is claiming a new world record for the longest extended-reach well ever drilled. Transocean jackup GSF Rig 127 set the record, drilling Well BD-04A in the Al-Shaheen field offshore Qatar to a depth of 40,320 feet (12,289 m) with a 35,770-foot (10,902-m) horizontal section.
The well is the first offshore well to exceed 40,000 feet (12,191 m) and breaks the previous extended-reach record holder, ExxonMobil's Sakhalin-1 well in Russia's Chayo field, by 2,000 feet (6,096 m).
During the 36 incident-free days of drilling, the crew members on GSF Rig 127 overcame high drilling torque through the horizontal section, and used deck-management planning and a supply boat to hold additional drill pipe, allowing the rig to stay within its variable deck load rating.
GSF Rig 127 is a Friede & Goldman L-780 Mod II design jackup, with 250-foot (76.2-m) water depth capability and operates with two Emsco FB 1600 Mud pumps. Other equipment includes a 2000-horsepower National 1320 UE Drawworks, and a Varco TDS-4S Top Drive.
Transocean Egypt and Middle East Division Manager Gary Bauer lauded the crew of the rig. "It goes without saying that your accomplishment truly epitomizes and embraces Transocean's vision statement where Rig 127 has a group of highly motivated people dedicated to achieving operational excellence in an incident-free environment and being recognized for delivering superior performance. Well done to the entire Rig 127 Team and continued success in delivering safe, superior performance."
Peter
Transocean rig breaks world drilling record
Filed from Houston 5/21/2008 1:51:37 PM GMT (source)
QATAR: Offshore drilling contractor Transocean is claiming a new world record for the longest extended-reach well ever drilled. Transocean jackup GSF Rig 127 set the record, drilling Well BD-04A in the Al-Shaheen field offshore Qatar to a depth of 40,320 feet (12,289 m) with a 35,770-foot (10,902-m) horizontal section.
The well is the first offshore well to exceed 40,000 feet (12,191 m) and breaks the previous extended-reach record holder, ExxonMobil's Sakhalin-1 well in Russia's Chayo field, by 2,000 feet (6,096 m).
During the 36 incident-free days of drilling, the crew members on GSF Rig 127 overcame high drilling torque through the horizontal section, and used deck-management planning and a supply boat to hold additional drill pipe, allowing the rig to stay within its variable deck load rating.
GSF Rig 127 is a Friede & Goldman L-780 Mod II design jackup, with 250-foot (76.2-m) water depth capability and operates with two Emsco FB 1600 Mud pumps. Other equipment includes a 2000-horsepower National 1320 UE Drawworks, and a Varco TDS-4S Top Drive.
Transocean Egypt and Middle East Division Manager Gary Bauer lauded the crew of the rig. "It goes without saying that your accomplishment truly epitomizes and embraces Transocean's vision statement where Rig 127 has a group of highly motivated people dedicated to achieving operational excellence in an incident-free environment and being recognized for delivering superior performance. Well done to the entire Rig 127 Team and continued success in delivering safe, superior performance."
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!
Peter
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!
Peter
Friday, February 13, 2009
Forest Oil Hits It Big In Haynesville Shale
It is not often that you hit a home run in your first at-bat, but it looks like Forest Oil, with corporate headquarters in Denver, Colorado, has done just that. Their first horizontal well in the Haynesville Shale Gas Play produced at a rate of 14 MMcfe/d, which is eye-opening by any standards.
Note that Forest Oil says they completed a 14 well vertical drilling program in 2008 in the Haynesville Shale. Why 14 vertical wells before drilling a single horizontal well? Prudence and foresight. The vertical wells give them geologic information which they can use to correlate, interpret and maximize the drilling, completion, and production of their subsequent horizontal wells. Obviously they're doing it right. Beginners luck you say? I don't think so.
Peter
Forest Oil All Smiles over Completed Haynesville/Bossier Shale Well
Forest Oil Corp. 2/11/2009
URL: http://www.rigzone.com/news/article.asp?a_id=72803
Forest Oil has reported results from its first horizontal Haynesville/Bossier shale well in the East Texas/North Louisiana corridor. The Moseley 14-1H, located in Red River Parish, Louisiana, produced into the sales line at a rate of 14 MMcfe/d with 6,500 psi flowing casing pressure while still cleaning up frac load. Forest has a 100% working interest in this well.
Forest holds approximately 3,800 net acres around the drillsite. Forest has approximately 140,000 gross (106,000 net) acres in the Haynesville/Bossier play and intends to operate a two rig program to drill 10-12 horizontal Haynesville/Bossier shale wells and participate in 2-3 non-operated wells during 2009. The Company currently has two horizontal Haynesville/Bossier shale wells completing and two drilling.
In 2008, Forest completed a 14 well vertical Haynesville/Bossier shale program in East Texas and North Louisiana. The 2008 vertical program allowed the Company to obtain additional data to identify the most prospective geographic areas to drill horizontally for the Haynesville/Bossier shale on its acreage. In 2009, Forest will now focus on executing a horizontal drilling program on its Haynesville/Bossier shale acreage using the Company’s wholly owned drilling subsidiary Lantern Drilling.
H. Craig Clark, President and CEO, stated, "We are particularly pleased with the productivity of our first Haynesville/Bossier horizontal. Our operations team has again performed well, especially in light of the mechanical difficulties being experienced in the industry related to this type of horizontal drilling. We will continue to evaluate different well designs and stimulation treatments as we did in our successful Cotton Valley horizontal program. Our future Haynesville program, like the Cotton Valley, will lead to increased cost efficiencies and enhanced completions."
Note that Forest Oil says they completed a 14 well vertical drilling program in 2008 in the Haynesville Shale. Why 14 vertical wells before drilling a single horizontal well? Prudence and foresight. The vertical wells give them geologic information which they can use to correlate, interpret and maximize the drilling, completion, and production of their subsequent horizontal wells. Obviously they're doing it right. Beginners luck you say? I don't think so.
Peter
Forest Oil All Smiles over Completed Haynesville/Bossier Shale Well
Forest Oil Corp. 2/11/2009
URL: http://www.rigzone.com/news/article.asp?a_id=72803
Forest Oil has reported results from its first horizontal Haynesville/Bossier shale well in the East Texas/North Louisiana corridor. The Moseley 14-1H, located in Red River Parish, Louisiana, produced into the sales line at a rate of 14 MMcfe/d with 6,500 psi flowing casing pressure while still cleaning up frac load. Forest has a 100% working interest in this well.
Forest holds approximately 3,800 net acres around the drillsite. Forest has approximately 140,000 gross (106,000 net) acres in the Haynesville/Bossier play and intends to operate a two rig program to drill 10-12 horizontal Haynesville/Bossier shale wells and participate in 2-3 non-operated wells during 2009. The Company currently has two horizontal Haynesville/Bossier shale wells completing and two drilling.
In 2008, Forest completed a 14 well vertical Haynesville/Bossier shale program in East Texas and North Louisiana. The 2008 vertical program allowed the Company to obtain additional data to identify the most prospective geographic areas to drill horizontally for the Haynesville/Bossier shale on its acreage. In 2009, Forest will now focus on executing a horizontal drilling program on its Haynesville/Bossier shale acreage using the Company’s wholly owned drilling subsidiary Lantern Drilling.
H. Craig Clark, President and CEO, stated, "We are particularly pleased with the productivity of our first Haynesville/Bossier horizontal. Our operations team has again performed well, especially in light of the mechanical difficulties being experienced in the industry related to this type of horizontal drilling. We will continue to evaluate different well designs and stimulation treatments as we did in our successful Cotton Valley horizontal program. Our future Haynesville program, like the Cotton Valley, will lead to increased cost efficiencies and enhanced completions."
Haynesville Shale May Become World's Largest Gas Field?
Ok, CEO's have been known to exaggerate their company's prognosis. See the following comments by the CEO of Chesapeake Energy. However, the Haynesville Shale in northwestern Louisiana and far eastern Texas is shaping up to be at least a major new gas play. Call it "unconventional shale gas", but it is for real. This gas play is at the heart of what I'm presenting on this blog.
The Haynesville Shale Play involves horizontal drilling, and the interpretation and steering while drilling of those wells, multi-stage frac jobs, and the opening of thousands of feet of pay zone, and multiple wells being drilled in all directions from one location. The Haynesville Shale and plays like it represent a big part of the future gas industry. Stay tuned.
Peter
Haynesville Shale Primed to Become World's Largest Gas Field by 2020 by Starr SpencerPlatts 2/11/2009
URL: http://www.rigzone.com/news/article.asp?a_id=72839
The Haynesville Shale may eventually become the world's largest producing gas field, Aubrey McClendon, CEO of Chesapeake Energy and a pioneer of the play in east Texas and northwest Louisiana, said Wednesday.
(Map showing the location of the Haynesville Gas Shale Play)
Chesapeake expects the play, which only became widely known when the company began talking about it last March, will produce at least 500 Tcf over time and then recover around 700 Tcf before potentially growing even larger, McClendon said during a presentation to the annual Cambridge Energy Research Associates conference in Houston.
"We think in time it will become the largest gas field in the world at 1.5 quadrillion cubic feet," he added.
Haynesville will become the largest US gas field by 2020, he added.
Meanwhile, the Barnett Shale play in north Texas, which sparked the shale craze earlier this decade, now produces 4.5 to 5 Bcf/d, and "is largely responsible for the current oversupply of natural gas" in the US, said the CEO. However, Chesapeake does not believe production will peak at more than 7 Bcf/d.
"If the current 100 rigs there -- half what it was six months ago -- holds, this field won't ever produce more than about 6 Bcf/d," he said.
Last week, Chesapeake peer EOG Resources said it expected the Haynesville to peak in the first quarter at 5 Bcf/d.
In addition, McClendon projected that a declining rig count could cause a 7% to 8%, and possibly even as much as 10%, decline in US natural gas production.
"You could see as much as a 10 Bcf/d swing in gas output year over year," McClendon said. US gas production currently hovers about 60 Bcf/d.
However, oilfield service costs should be down this year about 20%, and that, on top of the fall in rig count, should also spur recovery in the rig count, he said.
"The seeds of recovery in gas prices are being sown today and we think 2010 and 2011 should be a much better environment," said the CEO.
He also said he believes the US gas rig count, which peaked at about 1,500 rigs last September, needs to go down about 60% to create the much-sought price rebound. It is currently at 1,104 rigs.
The Haynesville Shale Play involves horizontal drilling, and the interpretation and steering while drilling of those wells, multi-stage frac jobs, and the opening of thousands of feet of pay zone, and multiple wells being drilled in all directions from one location. The Haynesville Shale and plays like it represent a big part of the future gas industry. Stay tuned.
Peter
Haynesville Shale Primed to Become World's Largest Gas Field by 2020 by Starr SpencerPlatts 2/11/2009
URL: http://www.rigzone.com/news/article.asp?a_id=72839
The Haynesville Shale may eventually become the world's largest producing gas field, Aubrey McClendon, CEO of Chesapeake Energy and a pioneer of the play in east Texas and northwest Louisiana, said Wednesday.
(Map showing the location of the Haynesville Gas Shale Play)Chesapeake expects the play, which only became widely known when the company began talking about it last March, will produce at least 500 Tcf over time and then recover around 700 Tcf before potentially growing even larger, McClendon said during a presentation to the annual Cambridge Energy Research Associates conference in Houston.
"We think in time it will become the largest gas field in the world at 1.5 quadrillion cubic feet," he added.
Haynesville will become the largest US gas field by 2020, he added.
Meanwhile, the Barnett Shale play in north Texas, which sparked the shale craze earlier this decade, now produces 4.5 to 5 Bcf/d, and "is largely responsible for the current oversupply of natural gas" in the US, said the CEO. However, Chesapeake does not believe production will peak at more than 7 Bcf/d.
"If the current 100 rigs there -- half what it was six months ago -- holds, this field won't ever produce more than about 6 Bcf/d," he said.
Last week, Chesapeake peer EOG Resources said it expected the Haynesville to peak in the first quarter at 5 Bcf/d.
In addition, McClendon projected that a declining rig count could cause a 7% to 8%, and possibly even as much as 10%, decline in US natural gas production.
"You could see as much as a 10 Bcf/d swing in gas output year over year," McClendon said. US gas production currently hovers about 60 Bcf/d.
However, oilfield service costs should be down this year about 20%, and that, on top of the fall in rig count, should also spur recovery in the rig count, he said.
"The seeds of recovery in gas prices are being sown today and we think 2010 and 2011 should be a much better environment," said the CEO.
He also said he believes the US gas rig count, which peaked at about 1,500 rigs last September, needs to go down about 60% to create the much-sought price rebound. It is currently at 1,104 rigs.
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