Barnett Shale - Barnett Shale Oil & Gas Field -
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 is a rock formation deep below the Texas surface which
was discovered by wildcatters in the 1950's. 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 up to 5 trillion feet of Natural Gas. Some geologists forecast the Barnett
Shale Formation to hold around 30 Trillion cubic feet. The Haynesville Shale, however, is rapidly approaching greatness and is also located in Texas.
Over the years, the Barnett Shale
Natural Gas Field has been subject to new drilling technology. This technology which uses various fracturing
techniques, is used during horizontal drilling. The Barnett Shale is unique because it was the first major
operation to extract gas from shale in the US. When reading about other shale plays, the drilling companies often
adopted techniques used in the Barnett Shale.
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 Natural Gas to get released. Drillers use millions of
gallons of water per well and the machines apply the water and sand at high rates 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 2-3 million.
At some point, the Barnett Shale has the chance 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.
Barnett Shale Combo Play - Oil companies and industry experts have found a new pool of
oil which is being called the Barnett Shale Combo Play. Oil & Natural Gas are both found in this region and have
been attracting large oil companies. As you know, Texas is home to a large oil discovery to the south called the Eagle Ford Shale. While the Eagle Ford Shale is huge, the Barnett Combo Play is getting some notice as well.
Barnett Shale 2013 - It's soon 2013 and the Barnett Shale
is showing a lot of promise. While the price of natural gas is still low, Oil prices should
jump into the $90's again on 2013. In the Barnett Shale Oil Play, companies are finding a
lot of oil which is sparking another round of interest in the field. Expect Natural Gas prices to remain low.
Companies Involved in Barnett Shale - Barnett Shale Stocks
- Devon Energy DVN - Devon Energy (DVN) updates the Barnett Shale - Shifting to the Barnett Shale Field in North Texas. In the fourth quarter, we brought 70 Barnett wells online and are continuing to see outstanding results from our drilling
in the liquids-rich portion of the play. Our fourth quarter net production held steady at a record 1.32 Bcf equivalent per
day, including 47,000 barrels of liquids per day. We continue to achieve excellent results in the Barnett with the pad drilling. In the fourth quarter, we brought a 22-well pad online
with average IPs of 3.2 million cubic feet equivalent, including 175 barrels per day of natural gas liquids.
Net liquids production from the Barnett Shale increased more than 20 percent compared to the year-ago quarter to 52,500 barrels per day,
accounting for 23 percent of total Barnett production. In aggregate, net production reached a record 1.37 billion cubic feet
of natural gas equivalent per day in the first quarter.
- Chesapeake Energy CHK - Chesapeake Energy (CHK) Barnett Shale - Chesapeake Energy drills for natural gas in the Barnett Shale
and has been here for many years. CHK has not mentioned anything recently that would indicate that they are drilling
in the oil window of the Barnett Shale ( Barnett Combo Play ). Stay tuned for further news.
RAM Resources RAME - Barnett Shale - Jack and Wise Counties Texas. We particpated in drilling 7.0 gross wells (3.2 net) in 2008 on our
Tier 1 Barnett Shale acrage in Wise and Jack Counties in the Fort Worth Basin of North Texas. All of these Barnett Shale
wells were completed as producers for a 100% success rate. The average 2008 net daily production rate was 515 Boe per
day (approximately 7% of our company's 2008 average daily production). We have a large acreage position within a Participation
Agreement with Devon Energy Corporation in which we have the right to participate with a 36% working interest in all wells
proposed in the contract area. A total of 19.0 gross wells (7.0 net) have been drilled since the inception of the agreement.
As of December 31, 2008 we estimated our proved reserves in our Tier 1 Barnett Shale area to be 2.6 million Boe, or 6% of
our proved reserves.
ConocoPhillips COP - In the Barnett
Shale, what we operate, we'll probably drill somewhere between 30 and 40 wells. And our partners and the things they
operate, we'll probably drill 20 to 30. As for selling acerage - We can provide a little bit of detail. We're generally
not going to be giving a lot of granularity on exactly what we sold, which packages of assets for. But the package -- but
the assets we sold in the Barnett were in the
South Barnett, which is the gassier part of the
play. And we are retaining and developing our interest in the North Barnett, which is the more liquids-rich portion of the Barnett play.
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.
Barnett Shale Map Texas
EOG Resources (EOG) - EOG Resources (EOG) provides a Barnett Shale Update - In the Fort Worth Barnett Shale Combo, EOG's second largest driver
of liquids growth during 2011, total liquids production increased 107 percent compared to 2010, driven by a 124 percent increase
in crude oil and condensate production. In Montague County, a pattern of five horizontal wells, the Badger A Unit #1H, B Unit
#2H, C Unit #3H, D Unit #4H and E Unit #5H showed initial peak oil production rates ranging from 525 to 659 Bopd with 106
to 205 Bpd of NGLs and 704 to 1,361 Mcfd (thousand cubic feet per day) of natural gas per well. EOG has 100 percent working
interest in the wells, which had an average peak crude oil production rate of 604 Bopd per well. A series of 10 McKown wells
drilled in Cooke County, began producing to sales at an average oil rate of 689 Bopd, with 210 Bpd of NGLs and 1.4 MMcfd of
natural gas per well. EOG has 93 percent working interest in these wells. During 2011, EOG expanded its core holdings in the
Barnett Combo by approximately 25,000 acres to 200,000 net acres. Following the success of its drilling program last year,
EOG expects the Barnett Combo to be its second largest liquids production growth contributor again in 2012.
- Quicksilver Resources KWK- Quicksilver KWK has exposure in the Barnett Shale natural gas field
- United States – Barnett Shale
Quicksilver
drilled 12 (10.6 net) wells and connected 8 (8 net) wells to sales in the first quarter. At March 31, 2012, Quicksilver had
a remaining uncompleted well inventory of 54 gross operated wells that have been drilled in the Barnett Shale but await completion
or connection to sales lines.
As of March 31, 2012, the company is operating one rig in the Barnett Shale. The company
plans to drill an additional 13 (9.4 net) wells and complete 28 (23 net) wells in 2012, a substantial portion of which will
be concentrated in the high-btu acreage where pricing margins are significantly higher.
Pioneer Natural Resources PXD - Pioneer Natural Resources PXD Barnett Shale Combo Play - In the liquids-rich Barnett Shale Combo play, Pioneer has
built an 80,000 net acreage position, representing more than 1,000 drilling locations. The Company drilled 9 wells in the
first quarter and placed 10 wells on production. Pioneer is operating two rigs in the play and plans to increase to four rigs
in 2013.
Production in the first quarter for the Barnett Shale Combo play was 6 MBOEPD, up 7% from the fourth quarter of
2011. The Company expects production to increase from an average of 4 MBOEPD in 2011 to 7 MBOEPD to 9 MBOEPD in 2012. With
the expected increase to four rigs in 2013, production is forecasted to grow to 12 MBOEPD to 16 MBOEPD in 2013 and 18 MBOEPD
to 23 MBOEPD in 2014. Production is comprised of 60% liquids (oil and natural gas liquids) and 40% gas.
Pioneer’s
internal rate of return in the Barnett Shale Combo play is expected to be 30% before tax. This assumes a targeted per-well
drilling cost of $3.5 million for 5,000-foot lateral wells, a gross EUR of 460 MBOE and flat commodity prices of $100 per
barrel for oil and $4 per MCF for gas. The internal rate of return has been impacted by the low gas price environment.
- 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.
In the second quarter, the Southwest Division continued its success
while running two rigs. In the Barnett Shale formation, the Company completed four wells with excellent results. In Johnson
County, two wells were completed with a combined rate of 6.0 (3.6 net) Mmcfe per day, while in Tarrant County, another two
wells were completed with combined rates of 10 (7.0 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.
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- 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 - Carrizo Oil & Gas, Inc. (NASDAQ:CRZO)
today announced that it has entered into a definitive agreement to sell a portion of its properties in the Barnett Shale (or
"Divested Properties") to a subsidiary of Atlas Resource Partners, L.P. (NYSE:ARP)
for $190 million in cash. This sale will have an effective date of January 1, 2012 and is expected to close in late April,
subject to customary closing conditions and purchase price adjustments. The producing properties that are being sold include
221 gross (approx. 110 net) wells currently producing at an approximate net rate of 35 MMcfe per day (predominantly dry gas).
