Thursday, August 6, 2009

EXCO: Update

Exco released its earnings and an operational update this week. Highlights include:
  • On a gross number basis, the company completed seven operated wells in the Haynesville shale in the second quarter, with two currently in the completion phase and another six in the drilling phase.
  • The company has 12 gross operated wells and six gross non-operated wells flowing to sales at a combined gross rate of 174 MMcf/day, which implies about 9.7 MMcf/day/well.
  • Because of EXCO's big JV deal with BG Group, the 2009 Haynesville Shale program has increased from 27 rigs to 37 rigs.
  • The company is operating four horizontal rigs in the play now but will add another three in the third quarter of 2009.
  • DeSoto Parish, LA wells have produced some gaudy inital production numbers. The average IP for EXCO's DeSoto wells has been 24 MMcf/day.
  • EXCO is also seeing some operational efficiencies. Notably, the time from spud to rig release has dropped from 70-75 days for the company's first wells to 48 days.
  • The company is now performing 12-14 frac stages on its horizontal wells, up from 9-10 on its first wells.

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