Thursday, January 14, 2010

Penn Virginia: Quick Update

Penn Virginia leases approximately 55,000 acres in east Texas, about half of which is prospective for the Haynesville Shale.  Most of this land is in Harrison Co.  In East Texas, the company is running three wells in 2010 (the third to be added this month) and the company plans to drill approximately 16 Haynesville wells, two Middle Bossier wells and six Cotton Valley wells.

The company expects its wells to see estimated ultimate recoveries (EUR) of 5-6 Bcf, with decline rates of 75% in the first year, as shown on the curve below.

Penn Virginia is running ten frac stages for its wells with total costs of approximately $8 million per well.  The average daily 30 day flow rate for the company's past two wells has been 7.2 MMcf/day.

1 comment:

Anonymous said...

This PVA presentation is such crap. The 'type curve' is way more optimistic than their actual production. Most PVA Haynesville wells won't recover the cost of drilling.