Wednesday, March 30, 2011

Petrohawk Update

Petrohawk is among the companies presenting this week at the Howard Weil conference in New Orleans.  While we've discussed what's going on with Petrohawk, I felt it was time to do a little summary since Petrohawk is a pretty good proxy for activity in the Haynesville Shale.

First, Petrohawk believes it will end its lease capture phase in the Haynesville mid-2011.  The current rig count is around 16, but that will drop to seven in the second half of the year as the company shifts more attention and resources to the Eagle Ford Shale.  As the map below shows, the company continues to believe that wells in the core of the Haynesville will have very high estimated ultimate recoveries (EUR), in this case around 8.0 Bcf.  Petrohawk claims that its operated wells will see EURs in the range of 9 to 10 Bcf.

The company plans to drill 100 gross operated wells (76 net) in 2011 and participate in another 230 gross non-operated wells (24 net) in the Haynesville.

The Mid-Bossier is also expected to be a strong producer for Petrohawk, but the company doesn't expect to tackle it until at least mid-2012.  Petrohawk has upped its Mid-Bossier EURs to 5.5 to 6.5 Bcf.  The map below shows Petrohawk's estimate of porosity in the Mid-Bossier with an overlay of the Haynesville 4 Bcf EUR line from the above map.  Petrohawk is not currently drilling any Mid-Bossier wells.

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