Monday, April 20, 2009

XTO: Update

XTO Energy is a big company with its hands in gas and oil plays across the country. It has 100,000 acres in the Haynesville Shale, with leases in both Texas and Louisiana, but doesn't have a lot of completions to talk about. The company expects to drill between 15 and 20 wells in 2009 and plans to operate between two and three rigs, so there should be some news soon.




Since XTO plays in all of the major shale basins in the U.S., it is able to offer a comparison of drilling costs and expected returns based on different prices of natural gas. Haynesville is clearly the most expensive shale play to drill ,with well costs averaging $8 million, but the play is able to overcome these high costs and provide good returns even if gas prices are low.

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