petrohawk-eagle ford shale

Eagle Ford Shale

Petrohawk's position in the Eagle Ford Shale, comprising 310,000 total net acres and producing in Hawkville Field between the Edwards and Sligo reef trends in McMullen and LaSalle Counties, Texas, continues to deliver ever-improving results with four rigs currently running. The overall play is unique in its varied composition of dry gas, condensate and oil deposits in a geologically diverse, highly faulted and overall more complex exploration area compared to the blanket depositional patterns encountered in other shale plays. In particular, the presence of condensate yield in Hawkville Field appears higher than originally expected, making the area potentially even more economic on a revenue equivalency basis.

The Company drilled six wells in the Eagle Ford Shale during the fourth quarter of 2009, of which five were on production at year end, and drilled 24 wells during 2009, bringing the total number of Eagle Ford Shale operated wells on production at year end to 20, all located in Hawkville Field. The average initial production rate for the 22 wells to date is 9.7 Mmcfe/d adjusted on 6:1 natural gas to condensate ratio and 10.4 Mmcfe/d adjusted on a 12:1 ratio. Average production for the first 30 days for the 19 wells with sufficient production history has increased to 7.2 Mmcfe/d and 7.8 Mmcfe/d adjusted on a 6:1 and 12:1 ratio, respectively. Average production for the first 60 days for the 18 wells with sufficient production history has increased to 6.0 Mmcfe/d and 6.6 Mmcfe/d adjusted on a 6:1 and 12:1 ratio, respectively. Total gross operated production as of mid-January, 2010 was approximately 66 Mmcfe/d (or approximately 61 Mmcf/d and 800 Bc/d) from 22 operated wells.

Petrohawk is currently operating four horizontal rigs in Hawkville Field and expects to drill approximately 60 operated wells during 2010. The Company continues to see dramatic improvement in performance in the Hawkville Field wells. The primary drivers in this improvement are drilling longer laterals, the ongoing refinement of the completion technique, as well as operational efficiencies on existing wells. The first extended reach lateral, the Caroline Pielop #4H, was completed in December 2009. It was completed with 16 stages over a approximately 5500' lateral. The initial production rate from the well was 11.6 Mmcf/d on a 24/64" choke with 4800# flowing casing pressure. When compared to other wells completed nearby, early data indicates that this well could have a significantly higher EUR. The Company intends to drill the majority of its upcoming wells with lateral lengths approaching 6,000', and possibly exceeding that length if the results continue to suggest improved recoveries for longer lateral lengths.

http://www.prnewswire.com/news-releases/petrohawk-energy-corporation-doubles-proved-reserves-83234617.html