Monday, September 14, 2009

El Paso: Update

El Paso is among the companies making the rounds at investor conferences. This time, the company provided some better detail on its progress so far. You can read the slides below, but the company is currently operating four rigs in the Haynesville Shale and see about 250 to 300 potential locations on their 40,000 gross acres. Currently, the company says wells cost $7.5 million and they are doing 14 stage fracs on the horizontal wells. Compared to other companies, that is a very low cost. Since I don't know all of the components of the $7.5 million, I can't say that they compare apples-to-apples.

The company has eleven wells producing a total of 54 MMcf/day (net to El Paso), all in Louisiana. The wells with their initial production numbers are listed below:

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