EXCO-BG ramps up Haynesville gas output

By OGJ editors
HOUSTON, Feb. 24
-- EXCO Resources Inc. has hiked gross production to 340 MMcfd in its Haynesville shale 50-50 joint venture with BG Group PLC and has begun horizontal drilling in the Marcellus shale.

The Haynesville output, tallied on Feb. 7, came from 34 operated wells drilled with an average of seven operated rigs and compared with 7 MMcfd in the 2008 fourth quarter. EXCO-BG holds 107,800 net acres, up 22,800 net core area acres since forming the joint venture.

Net Haynesville production was 96 MMcfd as of Feb. 7 compared with 47 MMcfd in the fourth quarter of 2009 and 6 MMcfd in the fourth quarter of 2008.

Capital spending for 2010 is budgeted at $255 million net to EXCO to drill 115 operated and 23 nonoperated wells. The operated wells include 95 Haynesville shale horizontals, seven Bossier shale horizontals, six Cotton Valley horizontals, and seven wells in the Vernon, La., area. In the EXCO-BG area of mutual interest, spending will total $741 million net to the joint venture.

TGGT Holdings LLC, a 50-50 joint venture with a BG Group affiliate, had averaged throughput of more than 850 MMcfd. In the 2009 fourth quarter TGGT completed the first of four stages of a 29-mile, 36-in. header system through the Holly field area to gather and deliver the companies’ Haynesville gas to interstate pipelines.

Operations began Nov. 30, 2009, on the system, which will eventually have a capacity of 1.5 bcfd. TGGT averaged 474 MMcfd in 2009, and throughput now exceeds 850 MMcfd.

EXCO-BG increased the operated horizontal rig count to 13 in the Haynesville and plans to raise that to at least 14 for the rest of the year. It also plans to run at least one operated horizontal rig in Appalachia throughout 2010. Current companywide rig counts are 17 operated and four nonoperated.

As EXCO sold assets and reorganized around the shale plays in 1009, it added 242 bcf of gas equivalent (bcfe) of proved reserves through the drill bit and produced 128 bcfe. The majority of the new reserves resulted from 2009 Haynesville horizontal development where the company ran an average of six operated rigs for the year and completed 25 operated wells.

EXCO cut the average gross cost of an operated Haynesville horizontal well 25% to $9.5 million in 2009 and expects 2010 well costs to continue at or below that level. Drilling days were cut nearly in half from 72 days for the early wells.

Under new Securities and Exchange Commission rules, EXCO added an average of 2.5 offsetting proved undeveloped locations with average gross reserves of 6.6 bcf for each producing well drilled. Under the former rules, it would have added an average of 1.6 offsetting proved undeveloped locations.

EXCO-BG is investing in two major water projects. One will enable it to use discharge water from an industrial plant as a key water source for hydraulic fracturing. This will lessen the impact on local water supplies, reduce truck traffic, and provide an environmentally safe option for water procurement.

The joint venture also has a salt water management project to transport service water and gather produced water across its acreage, reducing truck traffic and handling water much more efficiently and more cost effectively.

EXCO-BG’s first horizontal Haynesville well, Oden-30H6 in DeSoto Parish, La., has sold 3.2 bcf in its first year on production. The JV’s average operated well IP in the DeSoto area is 22.8 MMcfd.

EXCO is encouraged by Bossier test results in four vertical Haynesville wells from 2008 and is drilling its first horizontal Bossier well with seven Bossier horizontals planned in East Texas and North Louisiana in 2010.

It has greatly reduced activity in the Cotton Valley, Hosston, Travis Peak, and Pettet conventional horizons but does plan a six-well horizontal testing program in Cotton Valley in DeSoto and Caddo parishes to check the feasibility of a larger program in 2011 and beyond. It plans 28 mainly Hosston recompletions in DeSoto.

EXCO holds more than 654,000 net acres in Pennsylvania and West Virginia, of which 343,000 are believed prospective for Marcellus and Huron shale gas and 186,000 are in the overpressured Marcellus fairway. Negotiations are under way for a further 42,000 net acres.

The 2010 capital budget is $154 million for drilling, land, seismic, midstream expansion, and operations. About 70% of the fairway acreage is held by shallower production in Clinton-Medina and stacked Devonian sandstone, Devonian shale, Berea shale, and other horizons.

Related Articles

EXCO Resources chairman, chief executive officer resigns

11/22/2013 EXCO Resources Inc. Chairman and Chief Executive Officer Douglas H. Miller has resigned from his positions. EXCO’s board has appointed Jeffrey D. B...

BG, Exco sell equal TGGT holdings to Azure Midstream

10/18/2013 BG Group PLC and Exco Resources Inc., Dallas, have entered into definitive agreements to sell their equal equity holdings in TGGT Holdings LLC to A...

EXCO to sell Oklahoma producing assets

10/02/2009 EXCO Resources Inc. has reached an agreement with Sheridan Holding Co. I LLC to sell all of its producing assets in Oklahoma for $540 million, subj...

Haynesville gas flows as high as 28 MMcfd

12/09/2008 Three operators reported new horizontal completions in Jurassic Haynesville shale at rates as high as 28.2 MMcfd of gas.

Dallas firm ups Marcellus exploration outlay

05/07/2008 EXCO Resources Inc., Dallas, said it hiked its 2008 Appalachian basin capital budget to $244 million from $69 million as it positions itself to exp...

EXCO presses Vernon gas field development

05/07/2008 Gas production from Vernon field in Jackson Parish, La., has stabilized at a net 130 MMcfd of gas equivalent for the past 8 months since EXCO Resou...

Exco to buy US Midcontinent assets from Anadarko for $860 million

02/02/2007 Dallas independent Exco Resources Inc. reported it will acquire producing oil and natural gas properties, acreage, and other assets in several fiel...

EXCO to buy Anadarko assets for $1.6 billion

12/27/2006 EXCO Resources Inc., Dallas, has agreed to acquire Anadarko Petroleum Corp.'s oil and gas producing properties, acreage, and other assets in Vernon...

EXCO Resources to sell Colorado properties

12/13/2006 EXCO Resources Inc. reported it plans to sell its producing properties and undeveloped drilling sites in Colorado's Wattenberg field for $132.5 mil...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected