Barnett Shale Play Field - Natural Gas Field Texas Information
- Texas Shale
Barnett Shale Cities: Forth Worth to Dallas, Southern Texas Counties
- Johnson, Hill, Bosque, McLennan, Tarrant County. The sweet spot in the Barnett Shale is between Denton and Decatur, Texas
all the way down to the Forth Worth, Texas area.
The Barnett Shale rock deposit is a rock formation deep below the Texas
surface which in the 1950's was discovered by wildcatters. In 1980, technological advances enabled companies to extract natural
gas from the Barnett Shale. The Barnett Shale Field has been referred to as the biggest natural gas field in the
United States, having been proved to hold roughly 2.5 trillion feet of Natural Gas. Some geologists forecast the Barnett
Shale Play could hold around 30 Trillion cubic feet. The Haynesville Shale, however, is rapidly approaching greatness and is also in Texas.
Over the years the Barnett Shale Natural Gas Field
received fame when new drilling technology came onboard. This technology which uses various fracturing techniques,
is used during horizontal drilling. The Barnett Shale is one of a kind because this was the first major operation
to extract gas from shale. When reading about other shale plays, most often you will here them refer to the Barnett
Shale as this gas shale was the pioneer of them all. Many companies are using their expertise in other shale plays in
the United States.
Horizontal Drilling is a technique used to drill horizontally after the vertical well is drilled. Hydraulic
Fracturing Techniques are used to Fracture the Shale Rock in order for the release of Natural Gas. Drillers use
millions of gallons of water per well and machines apply the water and sand at high rates of pressure to fracture
the shale. More can be found Here
It is estimated that the Barnett Shale is more then 6,000 feet deep and VERY thick. So thick you have
to fracture the shale in stages ( Multi Stage Frac ). A horizontal well will run you anywhere between
5-11 million. The Barnett Shale has a chance one day to produce 3-4 billion cubic feet of natural gas per day.
Future development of the Barnett Shale could be tricky as the Dallas - Fort Worth areas become heavily populated. Industry
technicians are trying to figure out ways the drill in highly populated areas without harming homes, schools, businesses, and airports.
Landowners in the Barnett Shale area were getting up to $25,000 per acer by large Natural Gas and even Oil companies in 2008.
Infact, the Barnett Shale even holds a small amount of oil which can be commercially refined. As of March 2008, homeowners
in the Greater Meadowbrook area in eastern Fort Worth were being offered $25,000 per acre and a 26.5% royalty.
This all changed in late 2008, early 2009 however. The recent economic crisis has killed demand and natural gas prices
have falled under $6. Mineral Rights leasing activety in 2009 has fallen off a cliff but most of the Barnett Shale acreage
is already held by gas natural gas compaines. Those who were expecting huge royalty checks are disappointed by the lack
of drilling. I expect natural gas to move higher for the rest of 2009 bringing back the exploration.
Barnett Shale 2010 - It's 2010 and the Barnett Shale is starting to pick up again.
The drilling companies below really cut back on the number of active drilling rigs but we saw a noticeable
tick-up in December 2009. We also saw a major aquisition in the Oil & Gas sector with Exxon Mobil ( XOM
) buying XTO Energy ( XTO ). Cold weather and snow has been gripping the northeast which caused Natural Gas
prices to hit $6.
I am expecting the major shale plays to really come alive
again during 2010. Natural Gas prices have the opportunity to hit $8-9 toward the end of 2010 as the demand quickly
comes back. This will spark even more activity as far as land leases and drilling go. If you are investing
in the stock market, I really like Chesapeake Energy ( CHK ) below $30 in 2010
- Devon Energy DVN - Devon DVN is the largest of the Barnett Shale operators
-The company drilled 659 wells in the Barnett Shale field in north Texas during 2008. Devon had 3,809 producing wells
in the field at December 31, 2008. Devon produced 398 billion cubic feet of gas equivalent (Bcfe) from the Barnett Shale field
in 2008. This was a 31 percent increase compared with its 2007 net Barnett production. Net production from the Barnett Shale
reached nearly 1.2 Bcfe per day during the fourth quarter of 2008. Devon had exited 2007 producing about 950 million cubic
feet equivalent (MMcfe) per day. Devon Energy has roughly 150,000 acres in the Barnett Shale.
2009 Update - Moving now to our quarterly operations highlight, we’ll start with the Barnett Shale field in North Texas. We are currently running eight Devon operated rigs compared with a peak
of 39 rigs in the fourth quarter. During the first quarter, we brought 122 Barnett wells online.
Our net production
in the Barnett reached an all-time high of 1.2
Bcf equivalent per day in the first quarter, a 1% increase over the fourth quarter of 2008. This reflects the lag between
reduced drilling activity and lower production. We now expect our net Barnett production to crest some time during the second quarter before beginning an anticipated decline. However,
when it makes sense to resume a high level of activity, we expect to continue production growth.
- EOG Resources EOG - announced Oil discoveries and increased Natural Gas in Barnett Shale - They are drilling in Johnson
county, Hill county, Hood county, Erath county, Palo Pinto county. In the Fort Worth Basin Barnett Shale Play, EOG continues
to make improvements to individual well production rates and reserve recoveries. In the Fort Worth Barnett Combo Play where
drilling operations are planned in multi-well packages to maximize resource potential, three Bowen wells, the A#1H, A#2H and
B#1H, began sales at individual production rates ranging from 150 to 400 barrels of oil per day (Bopd) with 1.2 to 1.6 million
cubic feet per day (MMcfd) of liquids rich natural gas. EOG has 100 percent working interest in the wells. The Seibold Unit
#3H and #4H wells were completed at gross rates of 500 Bopd with 1.8 MMcfd and 550 Bopd with 1.2 MMcfd, respectively. EOG
has 96 percent working interest in the wells. The Tunnicliff B#1H and B#2H were also brought to sales at 400 Bopd each with
3.0 and 1.8 MMcfd, respectively. EOG has 100 percent working interest in the wells. While EOG is currently operating a four-rig
drilling program, it plans to increase its activity level to seven rigs later in the year. Subsequent to the second quarter,
EOG completed the acquisition of 25,000 net unproved acres and approximately 2,000 net barrels of oil equivalents per day
of production in Montague and Cooke Counties for $134 million, comprised of cash and shares of EOG common stock. EOG currently
holds approximately 194,000 net acres in Montague and Cooke Counties.
- Chesapeake Energy CHK - Barnett Shale (North Texas): The Barnett Shale is currently the largest natural gas producing field
in the U.S. and is producing approximately 50-60% of all shale gas in the U.S. In this play, Chesapeake is the second-largest
producer, the most active driller and the largest leasehold owner in the Core and Tier 1 sweet spots of Tarrant and Johnson
counties. During the 2009 third quarter, Chesapeake’s average daily net production of 639 mmcfe in the Barnett was approximately
flat compared to the 2009 second quarter and increased approximately 22% over the 2008 third quarter. Chesapeake is currently
producing a company record monthly average of approximately 685 mmcfe net per day (1,000 mmcfe gross operated) from the Barnett
and anticipates reaching approximately 700 mmcfe net per day (1,020 mmcfe gross operated) by year-end 2009, approximately
725 mmcfe net per day (1,060 mmcfe gross operated) by year-end 2010 and approximately 760 mmcfe net per day (1,110 mmcfe gross
operated) by year-end 2011. To further develop its 305,000 net acres of leasehold, of which 275,000 net acres are located
in the Core and Tier 1 areas, Chesapeake anticipates operating an average of approximately 18 rigs in 2010 to drill approximately
300 net wells. If Chesapeake is successful in finding a joint venture partner for some or all of its Barnett Shale leasehold,
the company plans to significantly increase Barnett drilling activity and production in 2010 and beyond. Assuming flat NYMEX
natural gas prices of $7.00 per mcf (compared to a recent 10-year NYMEX strip price of approximately $7.25 per mcf), the company’s
estimated pre-tax rate of return from a 2.65 bcfe horizontal Barnett well drilled for $2.6 million is approximately 36%.
Two
notable recent wells completed by Chesapeake in the Barnett are as follows:
The
Day Kimball Hill A1 in Tarrant County, TX achieved a peak rate of 16.4 mmcf per day and is expected to produce an average
of more than 13.0 mmcf per day in its first full month and exceed the previous monthly industry Barnett production record
established by two Chesapeake-operated wells this summer that averaged more than 9.0 mmcf per day
The
Chaney 2H in Johnson County, TX achieved a peak rate of 10.0 mmcf per day.
Barnett Shale Map Texas
Parallel Resources PLLL - Parallell has 78 wells in the Barnett Shale area - Barnett Shale Gas Project, Tarrant County, Texas ...Leasehold
acreage in Parallel's Barnett Shale gas project consists of approximately 31,600 gross (9,300 net) acres located in and
around the Trinity River flood plain, east and west of downtown Fort Worth. At present, the project controls approximately
75 multi-well pad sites. Based on current industry practices, Parallel anticipates development drilling on 40-acre spacing.
- Quicksilver Resources KWK- Quicksilver KWK has exposure in the Barnett Shale natural gas field - Quicksilver continued to focus on the exploitation and development of the 175,000 net acres in its core fairway within
the Barnett Shale formation of the Fort Worth Basin. During the second quarter of 2009, the company drilled 29 (22.9 net)
wells and connected 27 (25.2 net) wells to sales. The company currently has five rigs working in the basin, including four
rigs dedicated to the Lake Arlington and Alliance areas in Tarrant and Denton counties.
- XTO Energy XTO - XTO Energy now holds about 280,000 acres in the Barnett Shale.... 155,000 are in
the prolific core area of the Barnett Shale play. Another stellar quarter, up 7%. We are currently running 13 rigs. 11
of those are in the core 2 in Tier 1, a bunch of $4 million and $5 million a day wells like we’ve seen before. And again,
we are really having a hard time slowing Barnett
growth down. So, we are trying to throttle it at current gas prices, probably won’t complete as many wells in the second
quarter as we did in the first just to slow down the growth
- Range Resources RRC - Range RRC has been drilling in the Barnett Shale - The next
project I want to discuss is the Barnett Shale
play in the Ft. Worth Basin. Range currently has about 109,000 net acres in the Barnett Shale play. 42,000 net acres are in Tarrant, Johnson, Denton, eastern Parker, eastern Hood, northwest
Ellis, and southwest Ellis counties. This is the proven part of the play and we still have over 700 locations to drill in
these areas.
2009 Update:The Southwest division also delivered strong drilling results in the third quarter. Production in the Barnett
averaged 123 Mmcfe net per day during the third quarter and is currently producing approximately 130 Mmcfe net per day. The
highlight of the quarter has been the completion of eight wells in southern Tarrant County for a combined production rate
of 32 (20.4 net) Mmcfe per day. Also in Hood County, Range's Barnett team completed four wells for a combined rate of
8 (6.0 net) Mmcfe per day.
- Petroleum Development Corp PETD - Complementing PDC’s natural gas expertise is our Barnett Shale exploration
project. Located in the Fort Worth Basin of Erath County, Texas, we have an interest in nearly 8,900 net acres and are examining
development opportunities. We have acquired 3D seismic under both blocks, drilled one horizontal well, and completion operations
are expected to commence during the second quarter as construction of a pipeline by a third party is completed.
- Denbury Resources DNR - Average natural gas production from the Barnett Shale increased slightly on a sequential basis, averaging 60.4 MMcf/d
in the first quarter of 2009 (excluding natural gas liquids “NGLs”), as compared to 59.1 MMcf/d in the fourth
quarter of 2008 and 57.3 MMcf/d in the first quarter of 2008. However, during the first quarter of 2009 the Company sold a
significant inventory of NGLs which had been produced but not sold during the third and fourth quarters of 2008 due to plant
shutdowns caused by Hurricane Ike. This resulting in an increase in natural gas liquid sales from 2,389 Bbls/d in the fourth
quarter of 2008 to 4,874 Bbls/d in the first quarter of 2009. During the first half of 2008, the Company’s natural gas
liquid production averaged 3,350 BOE/d, representing a more normalized average natural gas liquid production rate per quarter.
On a BOE basis, the Company’s Barnett Shale production averaged 14,932 BOE/d in the first quarter of 2009, as compared
to 12,233 BOE/d in the fourth quarter of 2008 and 12,801 BOE/d in the first quarter of 2008. The Company’s total production
from the Barnett Shale is expected to average approximately 12,250 BOE/d during 2009, as the Company plans to drill only three
more wells in this area during 2009.
- Williams Company WMB - Williams WMB announced July 21st, 2008 that they are buying 10,000 acres in the Barnett Shale region in Texas. The assets
represent an estimated 175 billion cubic feet equivalent (Bcfe) of proved, probable and possible reserves on approximately
10,000 net acres located primarily in Tarrant, Johnson and Hood counties. At year-end 2007, Williams had an estimated
277 Bcfe of proved, probable and possible reserves in the Barnett Shale. Williams' acreage position in the play prior to this
agreement was approximately 34,000 net acres. Williams WMB now has 44,000 acres in the Barnett Shale Nautral Gas Field.
Williams has four drilling rigs operating in the Barnett Shale. The company plans to add two rigs in north Texas to begin
developing the new acreage.
.
- Forest Oil FST - Forest Oil FST is has exposure to the Barnett Shale - We have also stepped
up activity in the Barnett Shale, adding a second
rig to deploy so we have one running in Hill County and now one also running in Erath. In Hill County our IPS remains in a
1.5 million to 2 million a day range.
Carrizo Oil & Gas CRZO - CRZO is active in the Barnett Shale - 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."
Update - In the Barnett Shale, Carrizo drilled 8 wells, frac'ed and completed 12 wells, and brought 15 wells on production since
the end of the second quarter of 2009. A backlog of 33 wells are waiting on completion with an additional 6 wells waiting
on connection to sales pipelines.
