Tuesday, January 19, 2010

Petrohawk Adjusts its Mid-Bossier Shale Estimated Boundary

I was interested to see a recent Petrohawk investor presentation that showed yet another estimate of the boundaries of the Mid-Bossier Shale, the shale formation above the Haynesville Shale.  The top picture below comes from the January 2010 presentation, while the lower image comes from a November 2009 presentation.  You can gauge the changes yourself, but it seems as though the Texas side seems most different.

New estimate:

Old estimate:

The presentation had a couple of other interesting nuggets:
  • Total production from its 64 operating wells is greater than 500 Mcf/day.
  • The company estimates its Haynesville Shale wells will have an estimated ultimate recovery (EUR) of 7.5 Bcf.
  • 2010 well costs for both Haynesville and Mid-Bossier wells will be $8-$9 million per well.
  • The company will drill its first Mid-Bossier well in Q1 2010.
  • Estimated EUR for Bossier Shale is 5.5 Bcf, but this estimate has little actual data behind it.
  • The company is actively involved in acquiring 3D seismic data, both through its own efforts and by purchasing data from third parties.  The areas on the map below shaded in green are the company's 2010 targets:


Anonymous said...

This map would be very helpful if you had added a key. Are these maps in Petrhawk's investor presentation?

Robert Hutchinson said...

Yep, picture a highly paid executive in a suit walking you through the map. Actually, since PowerPoint has become a defacto means of communication these days, they probably intend the presentation to stand alone.

My take on the map: pink is the Haynesville shale outline, red is the "core" area, yellow denotes areas where Petrohawk has leases (in LA, the squares show the whole sections where the company leases and in TX the yellow shows the exact boundaries of the leased area) and the dotted outline is the estimated boundary of the Mid-Bossier Shale.

Same for the map below except the violet area is the Mid-Bossier outline.