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Pioneer isn't crying for anyone. Their chalk wells in DeWitt will blow your mind when they are announced.
PLS sees the Eagle Ford play possibly passing the Marcellus and Haynesville for market activity through the rest of the year as companies jockey for position in the U.S. hottest unconventional play including opportunities in the "oil window." As an example, Talisman announced earlier this morning that it would acquire Common Resources' Eagle Ford assets for $360 million. This number calculates out to record metrics of $9,700 per acre and/or $30,000 per flowing MCFe
Eagle Ford Shale
Petrohawk has expanded its position in the Eagle Ford trend, where it is currently operating 8 rigs, to include three distinct areas of development: Hawkville, Black Hawk and Red Hawk. Each of these areas has different production profiles which all provide the opportunity for large scale development. The Company forecasts that with the current capital budget allocation in 2010, and a modest increase in drilling capital allocated to the Eagle Ford Shale in 2011, oil and natural gas liquids production is expected to increase significantly to approximately 15%-20% of total production by the end of 2011. Currently, oil and natural gas liquids production is approximately 3% of Petrohawk's total production.
The Hawkville Field, in La Salle and McMullen Counties, Texas, is expected to continue its role as the core commercial production area for natural gas and liquids. With approximately 25 wells on production, the bounds of Hawkville Field production are expanding to the east and north. The initial well in the Joint Venture with Swift Energy was successfully completed during the first quarter. The Bracken JV #1H initially tested at a rate of 9.0 Mmcfe/d on a 24/64" choke. The well's production rate was subsequently restricted temporarily, awaiting the installation of further production facilities, to a choke setting of 17/64" at a rate of 6.4 Mmcfe/d with a stable flowing casing pressure ("FCP") of 5500#. The second well in the Joint Venture is waiting on completion and the third well is drilling.
The third well in the Black Hawk prospect in Dewitt County, Texas, the Kickendahl #1H, was recently completed at a rate of 3.1 Mmcf/d and 745 Bc/d on a 12/64" choke with 7,550# flowing casing pressure. This result is very similar to the first two wells that have been completed, even though the well was still cleaning up and the rate was increasing at the time of the report. The fourth well to be completed will be the Krause #2H. Its lateral length is approximately 5900', and it is the first well in the prospect with an extended lateral length. Its completion is scheduled for mid-May.
In the Red Hawk prospect in Zavala County, Texas, the Company is drilling ahead on its second well, the Mustang Ranch "C" #1H. It is anticipated that the well will be completed within the next 30 days.
To date, Hawk Field Services has completed construction of approximately 65 miles of primarily 16" pipe in the Eagle Ford Shale. An additional 100 miles of gas gathering line, 15 miles of condensate gathering line and 60 miles of liquids gathering lines are budgeted for construction during the remainder of 2010. The Company also expects to increase treating capacity in the Hawkville Field area by installing another 150 gallons per minute (GPM) amine plant, increasing Petrohawk's total treating capacity to 250 GPM in the Eagle Ford Shale. An additional 12,500 barrels of condensate stabilization capacity are scheduled to be added to plant sites in both the Black Hawk and Hawkville areas during 2010.
Thanks for posting a screenshot of your calcs, condog. I've always wondered how you do your calcs. Now I have an idea and can (hopefully) apply it myself.
Not currently in AUT but reading this thread has piqued my interest.
Cheers condog. I saw agentm's post on Patersons Securities' target price for AUT. I do recall that Patersons had a target price of about $1.33 or thereabouts on CSS.
One point I would argue on your forecasting is the price of gas.
I think you have been to conservative at $4 per mmsf.
Even after this weeks correction we are still looking at $5 per mmsf by years end and that's a 25% premium on current market prices.
Thats pretty close to my own im targeting $1.37 at end of calandar 2010, if the current drilling program is finished and not accellerated.
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