Epsilon Marcellus shale strong Operations
Goodrich Horizontal Haynesville Shale Flows 14.5 MMcf/d
Nighthawk Energy plc Jolly Ranch Update
Trans Energy 4th Vertical Well in Marcellus Shale
Chesapeake $412MM Sale of Anadarko, Arkoma Assets
Bossier Play Gastar Boasts Berlin-1 Top 10 Best Wells
Study analyzes US, shale gas plays
A recent study has estimated that US shale-gas plays may produce as much as 24 bcfd by 2018.
Haynesville Shale Flows 14.5 MMcf/d
Goodrich Petroleum Corp. 1/6/2009
Goodrich has announced well results in the Haynesville Shale and Angelina River Trend.
The Company has completed its initial horizontal Haynesville Shale well, the Chesapeake Energy Corporation-operated Holland 17H-1, which tested at a rate of approximately 14.5 MMcf per day on a 24/64 inch choke with 6,000 psi. The well, which was drilled to 16,200 feet, had a horizontal displacement of approximately 4,400 feet (3,800 feet cased), and is located in the Company's Bethany-Longstreet area in Caddo Parish, Louisiana.
Goodrich owns a 50% working interest in the well, Chesapeake owns 40% and Plains Exploration & Production Company owns 10%.
ANGELINA RIVER TREND
The Company has completed its Estes 2H (100% WI), a James Lime horizontal well on its Cotton South prospect area, which tested at 7.0 MMcf per day on a 35/64 inch choke with 1,500 psi.
plc Jolly Ranch Update
The directors of Nighthawk Energy plc (“Nighthawk” or “the Company”) (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce an operational update in respect of the Jolly Ranch Group project, located in Elbert, Lincoln and Washington Counties, Colorado. Nighthawk holds a 50 per cent. working interest in the project and the operator, Running Foxes Petroleum Inc. (“Running Foxes”), holds the remaining interest.
Highlights Co-mingling of Atoka, Cherokee and Marmaton reservoirs from single wells underway, minimising costs, increasing rate of return per well and reducing the need for multiple wells on a single location Codell wells Jolly 9C-1 and Jolly 16C-1 reach total depth, encounter hydrocarbons and have been cased for production Rig moved to the Fisher 14-20 location in the Middle Mist area to test prolific J Sand formation Ongoing independent evaluation of newly acquired Bluebird Oilfield exceeding original expectations Current average Jolly Ranch operating profit threshold indicated to be US$25.00 per barrel
The Jolly Ranch Group project is a major hydrocarbon production and development venture which includes Jolly Ranch, currently the core area, Middle Mist and Mustang Creek, to the north and west of Jolly Ranch respectively. The total project area comprises 370,578 gross acres (281,069 acres on a net basis).
Drilling results from the initial ten wells drilled have established Jolly Ranch as a significant new oil and natural gas field, particularly in the Atoka and Cherokee shales, which are laterally extensive and are believed to be continuous over the entire project area. In addition, several conventional oil bearing zones, in particular the Marmaton, have been penetrated during drilling.
Co-mingling of production
Under the rules and regulations of the Colorado Oil and Gas Commission, co-mingling of production from the Atoka, Cherokee and Marmaton reservoirs is permitted at Jolly Ranch. The reservoir characteristics in terms of age of rock and pressure data imply similarity and
are therefore not expected to result in production problems. This means that the requirement for multiple wells on one location to produce from separate formations is reduced as production is permitted from multiple reservoirs simultaneously from one well, minimising costs and increasing the rate of return on a per well basis.
The previously drilled wells, the Craig 15-34 and the Craig 4-4, have been placed on production following perforation and acidisation in the Tebo and Lower Atoka shales. Both wells swabbed between 90 and 100 per cent. oil prior to being placed on production. These wells are now awaiting further completion in the Upper Atoka, V and Excello shales and the conventional Marmaton zone.
The Craig 8-1 well, which initially produced from the Lower Atoka shales, has also been completed in the Tebo shales and is now producing from both formations.
All of the ten initial wells, with the exception of the Jolly 10-1 which will be used as a water disposal well, have been or will be subjected to slickwater and sand fraccing in the Cherokee zones. This process has proved to be successful based on the results from the Craig 15-32, Craig 8-1, Jolly 16-1 and Jolly 4-13 wells.
The Craig 15-32, Jolly 2-1 and Jolly 16-1 wells continue to produce at previously reported rates. Production of 1,000 barrels of oil per day (gross) at Jolly Ranch is targeted to be reached during Q1 2009.
Codell and J Sand drilling programme
As announced on 19 December 2008 a drilling programme has commenced to test the shallow Codell and J Sand formations, which are of Cretaceous age located at depths of between 3,000 and 4,000 feet and are both prolific producing zones in the region.
Two wells testing the Codell formation, the Jolly 9C-1 and the Jolly 16C-1, have reached total depth, encountered hydrocarbons based on petrophysical log evaluation and have been cased for production.
Black Gold Inc., a local drilling company, has moved the rig to the Fisher 14-20 which is located in the Middle Mist area of the project. The well is designed to test the J Sand formation at less than 6,000 feet. The well is an offset to a historical well that encountered significant hydrocarbons which, based on log analysis, had 17.5 feet of pay in the J Sand with 374,566 barrels of oil in place.
The Bluebird Oilfield was acquired in December 2008 as part of a land package offered at a State of Colorado land sale. The acreage lies within the Mustang Creek section of the Jolly Ranch Group project.
Independent evaluation of historical data is ongoing, however indications are that the original estimates of between one to four million barrels of recoverable oil are understated.
Evaluation of the Bluebird continues with drilling and development expected to commence during Q2 2009.
Jolly Ranch profitability threshold
The directors estimate that the current operating breakeven threshold at Jolly Ranch is an oil price of approximately US$25.00 per barrel. However, vendor prices are falling substantially, in some cases by as much as 30 to 40 per cent. This reduction in costs is being reflected in the operational expenditure on the project and, if this trend continues, the directors expect that the operating breakeven oil price could fall to US$15.00 per barrel.
Many hydrocarbon projects in the US are being suspended or cancelled due to operating costs of between US$30 to US$60 per barrel. Nighthawk’s current profitability threshold demonstrates the financial robustness of the Jolly Ranch project.
|Epsilon Marcellus shale strong Operations
Epsilon Energy 1/6/2009
Epsilon Energy has recently completed drilling the Poulsen 1H, a 2,700 foot lateral horizontal well. To date, Epsilon has drilled seven wells (four horizontal and three vertical), all of which target the Marcellus shale. Recent test results of the first completed horizontal well and first completed vertical well produced sustained rates of over 3 Mmcf/day and 1 Mmcf/day, respectively.
The next horizontal well hydraulic stimulation (Frac) is scheduled for mid to late January. Infrastructure work is ongoing, including obtaining the final phase of permits necessary to build the gathering system and shipment of the first compressor, which is scheduled to be completed by the end of January.
New York, 'Park Place'
Epsilon now holds a total of approximately 32,000 gross (16,000 net) acres in New York that is prospective for Marcellus shale development. The Company is moving forward with its operational phase by continuing to consolidate its Marcellus shale leasehold and is beginning work on drilling and infrastructure regulatory requirements. The Company is working with the New York Department of Environmental Conservation (NYDEC) to satisfy any requirements which stem from the current NYDEC Supplemental Environmental Impact Statement process, with the goal of commencing drilling operations in late 2009.
West Virginia, 'Amber Bank & Blue Jacket'
Epsilon has 108 wells producing in these two projects with 3 awaiting tie-in. The Company has drilled 111 gross (58.76 net) wells to date in West Virginia, with a 100% success rate.
The drilling program targeting the Bakken Shale formation is expected to begin in the third quarter of 2009. The Company holds more than 21,500 net prospective acres in the area.
Epsilon has elected to participate in future exploration targeting the Utica shale formation in the Yamaska project on acreage controlled by its partner, Gastem.
"With our monthly revenue and a strong cash position, Epsilon remains in a healthy state.By maintaining tight monetary controls and seeking to increase production at lower costs this position will be maintained" stated Fred Zaziski, Epsilon's President and CEO. The company will continue to focus on increasing production revenue and decreasing costs, as required by the highly competitive market conditions.
$412MM Sale of Anadarko, Arkoma Assets
Chesapeake Energy Corp. 1/5/2009
Chesapeake it has sold certain Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma Basins in its fourth volumetric production payment transaction (VPP). Through the VPP, Chesapeake conveyed a royalty interest to investors associated with Argonaut Private Equity. The purchase was financed by GS Loan Partners, an affiliate of The Goldman Sachs Group, Inc.
The assets include proved reserves of approximately 98 bcfe and current net production of approximately 60 mmcfe per day for proceeds of $412 million, or $4.20 per mcfe. Chesapeake retained drilling rights on the properties below currently producing intervals.
The company previously announced its intention to complete a VPP by year-end 2008 as part of its plan to build larger cash reserves over the next two years. The transaction, which closed on December 31, 2008, will be treated as a sale for accounting purposes and the company’s proved reserves will be reduced accordingly.
|Bossier Play Gastar Boasts Berlin-1 Top 10 Best Wells
Gastar Exploration Ltd. 1/5/2009
Gastar has successfully completed its best producing well to date, the Belin-1, which was completed in two lower Bossier zones. The well is flowing at a combined initial gross sales rate of 41.2 MMcf/day on a 20/64ths inch choke with approximately 10,300 psi of flowing casing pressure. Gastar owns a 52% working interest before payout (40% net revenue interest before payout) in the Belin-1.
"The Belin-1 is our best producer to date, and based on the high quality of the reservoir rock and the strong initial production rate, we expect it will also be our best well to date in the Hilltop area in terms of estimated recoverable reserves," said J. Russell Porter, Gastar's President and CEO.
"To put this well into perspective, our biggest producer prior to the Belin-1 was the Wildman-3, which IP'ed at 23 MMcf/day. Comparing it against the entire play, we believe the Belin-1 is among the top ten best wells reported by any producer in any area of the Bossier," he added.
"The Belin-1 contains the highest porosity rock we have drilled to date, and we believe there is high-quality reservoir rock uphole from our initial lower completions that could allow us to maintain strong flow rates well into the future."
In addition, Gastar is currently drilling a sidetrack to the LOR-7 and expects to reach total depth in approximately 5 to 10 days. Gastar has a 50% working interest before payout (37.5% net revenue interest before payout) in the LOR-7.
Completes Fourth Vertical Well in Marcellus Shale
Trans Energy, Inc. 1/5/2009
Trans Energy's its Blackshere-101 well in Marion County, West Virginia was successfully fraced on December 29th and is currently awaiting connection to a sales line. The Blackshere-101 is completed in the Marcellus shale, a prolific new "resource play" in Appalachia, similar to the Barnett, Fayetteville and Haynesville shales which have grown to become a significant base of hydrocarbon reserves in the United States.
James K. Abcouwer, President and CEO of Trans Energy, said, "This fourth Marcellus well is located in Marion County which is the county to the east of our existing Marcellus wells and is a step out of what we consider our proven area. We are delighted with its initial indications. We are optimistic that the positive results from our three vertical wells in Wetzel County and now with our most recent completion in Marion County can be replicated throughout our acreage position in northern West Virginia. We're now beginning a horizontal well program in yet another significant step forward for Trans Energy to properly develop its acreage position. We're pleased to have achieved this sizeable acreage position centered on the Wetzel-Marion-Doddridge Counties area, which looks to be one of the most -- if not the most -- prolific part of the Marcellus resource in Appalachia."