Tuesday, April 21, 2009

Petrohawk: Update #2

Petrohawk presented today at the IPAA conference in New York and gave some updates on its progress. I've already posted about specific results from the first quarter, so I'll keep it pretty high level here. In general, Petrohawk has about 300,000 net leased acres in the Haynesville Shale and estimates an EUR of 7.5 Bcfe per well. They see development costs of $8.5 to $9.5 million per well, which is higher than some other companies are reporting. Petrohawk notes that the higher costs relate to the assumption of longer laterals and more frac stages.

In the slides below, Petrohawk has isolated what it believes is the "core" area (the darker shaded area) of the Haynesville Play through drilling tests.

Petrohawk plans to drill between 75 and 80 wells this year, completing about six per month. Interestingly, the slide below has a graphical decline curve for the first eight months or so on a real number basis, rather than percentage basis, for their average IP of 18 Mmcfe/day.

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