- Year-over-year net production in the Haynesville Shale increased by 5% in 2012, but fourth quarter net production dropped from 407 MMcf/day in 2011 to 334 MMcf/day in 2012.
- In 2012, EXCO drilled 58 operated wells (21.8 net) and it completed 71 wells. The average IP rate was 12.7 MMcf/day with a flowing casing pressure of 7,784 psi. All of the wells were produced on a reduced choke (18/64").
- The company continues to focus its efforts on DeSoto Parish, LA. In 2013, the plan is to drill 26 wells (15.5 net) with a three rig program. The company plans to complete 42 wells (22.1 net) in 2013, as it continues to work through its backlog of drilled wells.
- Haynesville Shale well costs at the end of 2012 were $8.0 million per well versus $9.5 million a year earlier, as the competitive landscape for services shifted in favor of producers and EXCO continues to refine its completion techniques.
Bottom line, EXCO is doing a good job but it is going to continue pulling back. From Q4 2012 to Q1 2013, EXCO's rig count has dropped from five to three and production is on a downward trajectory.