Wednesday, August 5, 2009

Petrohawk: Update

Petrohawk Energy reported earnings on Tuesday and gave some general operational updates on its progress in the Haynesville Shale:

  • The company has upped its acreage position to 325,000 acres with new leases in Shelby and Nacogdoches Counties, TX.
  • Petrohawk has drilled or participated in 32 wells to date. Of the 14 operated wells drilled in the second quarter of 2009, the initial production rates ranged from 9.8 to 22.4 MMcf/day, with an average of 17.3. Average flowing casing pressure was 6,600 psi and most wells were on a 24/64” choke (two were on a 26/64” choke).
  • The company ended the quarter with 12 rigs operating in the play.
  • For the 38 company-operated wells in production without mechanical problems, the average first 30 day production rate was 14.2 MMcf/day.
  • The company is seeing production efficiencies, as the spud to rig release time in Q2 decreased to 46 days, down from 59 days in 2008. Days from rig release to first sales was 16 days in Q2, down from 31 days in 2008. Well costs are now in the rage of $8.5 to $9.5 million, mostly because of the shorter durations noted above.
  • A field-wide geologic mapping project using nearly 300 digital open hole logs has Petrohawk believing that portions of northwest Louisiana (while not specifically stating where…) contain the thickest and potentially productive Haynesville Shale section. Perhaps not coincidentally, Petrohawk feels that it is well represented in this geographic area.

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