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Permalink Reply by SharonB T18N R15W S8 on October 22, 2008 at 8:36

Table of contents:

1 Contents
1.1 List of Tables 5
1.2 List of Figures 7

2 Introduction 9

3 Barnett Shale 13
3.1 Barnett Shale Lease and Drilling Details till 2008 15
3.2 Barnett Shale Reserves and Production Trends, 2003-2007 17
3.3 Barnett Shale Production Economics 19
3.3.1 High production rates key to profitability 21
3.4 Barnett Shale Top Operating Companies 25
3.4.1 XTO Energy, Inc Barnett Shale Operations, 2008 25
3.4.2 Devon Energy, Barnett Shale Operations, 2008 26
3.4.3 Chesapeake Energy, Barnett Shale Operations, 2008 27
3.4.4 EOG Resources, Barnett Shale Operations, 2008 28
3.4.5 Carrizo Oil and Gas, Inc Barnett Shale Operations, 2008 29

4 Fayetteville Shale 30
4.1 Fayetteville Shale Background 30
4.2 Fayetteville Shale Lease and Drilling Details till 2008 32
4.3 Fayetteville Shale Reserves and Production Trends, 2003-2007 34
4.4 Fayetteville Shale economics 36
4.4.1 All lease cost wells are profitable even at low production rates 38
4.4.2 All wells are profitable at prices above $6000/mmcf 40
4.5 Fayetteville Shale Companies 42
4.5.1 XTO Energy, Inc, Fayetteville Shale Operations, 2008 42
4.5.2 South Western Energy Fayetteville Shale Operations, 2008 43
4.5.3 Chesapeake Energy, Fayetteville Shale Operations, 2008 44

5 Haynesville Shale 45
5.1 Haynesville Shale Background 45
5.2 Haynesville Shale Leasing and Drilling Details till 2008 46
5.3 Haynesville Shale Reserves and Production, 2003-2007 48
5.4 Haynesville Shale Production Economics 52
5.4.1 Production rates are the key to higher returns 54
5.4.2 Well Costs do not have big impact on well IRR 56
5.5 Haynesville companies 58
5.5.1 Chesapeake Energy, Haynesville shale Details, 2008 58
5.5.2 Encana, Haynesville shale Details, 2008 59
5.5.3 Cabot Oil and Gas, Inc Haynesville shale Details, 2008 60
5.5.4 Exco Resources, Haynesville shale Details, 2008 61
5.5.5 GMX Resources, Haynesville shale Details, 2008 62

6 Woodford Shale 63
6.1 Woodford Shale Background 63
6.2 Woodford Shale Lease and Drilling details till 2008 64
6.3 Woodford Shale Reserves and Production, 2003-2007 66
6.4 Woodford Shale Production economics 68
6.4.1 High IP rates essential to maintain returns 70
6.4.2 High lease costs affect returns for $6 million/well and above 72
6.5 Woodford Shale Companies 74
6.5.1 XTO Energy, Inc, Woodford shale details, 2008 74
6.5.2 Devon Energy, Woodford shale details, 2008 75
6.5.3 Newfield Exploration, Woodford shale details, 2008 76

7 Bakken Shale 77
7.1 Bakken Shale Background 77
7.2 Bakken Shale Lease and drilling Details till 2008 79
7.3 Bakken Shale Reserves and Production, 2003-2007 81
7.4 Bakken Shale Production economics 83
7.4.1 High oil prices essential to sustain the Bakken Production 85
7.4.2 Low lease costs essential to profitability at high well costs 87
7.5 Bakken Shale Companies 89
7.5.1 Crescent Point Energy Trust, Bakken Shale Details, 2008 89
7.5.2 Petrobank Energy and Resources, Bakken shale details, 2008 90
7.5.3 Talisman Energy, Bakken Shale Details, 2008 91
7.5.4 XTO Energy, Bakken Shale Details, 2008 92
7.5.5 Continental Resources, Bakken Shale Details, 2008 93

8 Appendix 95
8.1 Methodology 95
8.1.1 Coverage 95
8.1.2 Secondary Research 96
8.1.3 Primary Research 96
8.1.4 Forecasts 97
8.1.5 Expert Panel Validation 97
8.2 Definitions 97
8.3 Unit Of Measure 98
8.4 Contact Us 98
8.5 About Global Markets Direct 98
8.6 Disclaimer 98
8.7 Sources 99

1.1 List of Tables
Table 1: Major Shales Economic Parameters 11
Table 2: Average Returns in Different Shales 11
Table 3: Barnett Shale, Total Natural Gas Production in MMcf, 2003-2007 17
Table 4: Barnett Shale, Natural Gas Production by Top Ten Operators , MMcf, 2003-2007 18
Table 5: Barnett Shale Economics 20
Table 6: XTO Energy, Inc Barnett Shale Operations, 2008 25
Table 7: Devon Energy Barnett Shale Operations, 2008 26
Table 8: Chesapeake Energy Barnett Shale Operations, 2008 27
Table 9: EOG Resources Barnett Shale Operations, 2008 28
Table 10: Carrizo Oil and Gas, Inc Barnett Shale Operations, 2008 29
Table 11: Fayetteville Shale, Total Natural Gas Production in MMcf, 2003-2007 34
Table 12: Fayetteville Shale, Natural Gas Production by Top Ten Operators , MMcf, 2003-2007 35
Table 13: Fayetteville shale economics 37
Table 14: XTO Energy, Inc Fayetteville Shale Details, 2008 42
Table 15: South Western Energy Fayetteville Shale Details, 2008 43
Table 16: Chesapeake Energy Fayetteville Shale Details, 2008 44
Table 17: Haynesville Shale Natural Gas Production, 2003-2007 48
Table 18: Haynesville Shale Top Operating Companies 49
Table 19: Haynesville Shale Economics 53
Table 20: Chesapeake Energy, Haynesville Shale Details, 2008 58
Table 21: Encana Haynesville Shale Details, 2008 59
Table 22: Cabot Oil and Gas, Inc Haynesville Shale Details, 2008 60
Table 23: Exco Resources Haynesville Shale Details, 2008 61
Table 24: GMX Resources Haynesville Shale Details, 2008 62
Table 25: Woodford Shale, Natural Gas Production by Top Ten Operators , MMcf, 2003-2007 66
Table 26: Woodford Shale Well Economics 69
Table 27: XTO Energy, Inc Woodford Shale Details, 2008 74
Table 28: Devon Energy Woodford Shale Details, 2008 75
Table 29: Newfield Exploration Woodford Shale Details, 2008 76
Table 30: Bakken Oil Play, Total Crude Oil Production In Barrels, 2003-07 81
Table 31: Bakken Shale (US), Crude Oil Production By Top Ten Operators in Barrels, 2003-07 81
Table 32: Bakken Shale (Saskatchewan), Crude Oil Production By Operator in Thousand Barrels, 1995-2007 82
Table 33: Bakken shale economics 84
Table 34: Crescent Point Energy Trust Bakken shale details, 2008 89
Table 35: Petrobank Energy and Resources Bakken shale details, 2008 90
Table 36: Talisman Energy Bakken Shale Details, 2008 91
Table 37: XTO Energy Bakken Shale Details, 2008 92
Table 38: Continental Resources Energy Bakken Shale Details, 2008 93

1.2 List of Figures
Figure 1: Major US Shales Map, 2008 9
Figure 2: Major US Shales Well Production profile 10
Figure 3: Barnett Shale Location Map, 2008 13
Figure 4: Barnett Shale surface section map, 2008 14
Figure 5: Barnett Shale Well profile, Core Area vs. Non-Core Area, 2008 15
Figure 6: Barnett Shale Wells Drilled, 2000 - 2007 16
Figure 7: Barnett Shale Well Production profile 19
Figure 8: Breakeven profile of Barnett Operations, $2million and 2mmcfpd 21
Figure 9: Breakeven profile of Barnett Operations, $2million and 2.5mmcfpd 21
Figure 10: Breakeven profile of Barnett Operations, $2million and 3mmcfpd 22
Figure 11: Breakeven profile of Barnett Operations, $2mm and 2.5mmcfpd 23
Figure 12: Breakeven profile of Barnett Operations, $2.5mm and 2.5mmcfpd 23
Figure 13: Breakeven profile of Barnett Operations, $3mm and 2.5mmcfpd 24
Figure 14: Fayetteville Shale Map, 2008 30
Figure 15: Fayetteville Shale Cross Section, 2008 32
Figure 16: Fayetteville Shale Well Production profile 36
Figure 17: Breakeven profile of Fayetteville Operations, $2 million and 2 mmcfpd 38
Figure 18: Breakeven profile of Fayetteville Operations, $2 million and 2.5 mmcfpd 38
Figure 19: Breakeven profile of Fayetteville Operations, $2 million and 3 mmcfpd 39
Figure 20: Breakeven profile of Fayetteville Operations, $2 million and 3 mmcfpd 40
Figure 21: Breakeven profile of Fayetteville Operations, $2.5 million and 3 mmcfpd 40
Figure 22: Breakeven profile of Fayetteville $3 million and 3 mmcfpd 41
Figure 23: Haynesville Shale Map, 2008 45
Figure 24: Haynesville Shale Total Reserves Growth, 2003-2008 48
Figure 25: Haynesville Shale number of operating Rigs, 2004-2008 51
Figure 26: Haynesville Shale Well Production profile 52
Figure 27: Breakeven profile of Haynesville Operations, $6 million and 5 mmcfpd 54
Figure 28: Breakeven profile of Haynesville Operations, $6 million and 6 mmcfpd 54
Figure 29: Breakeven profile of Haynesville Operations, $6 million and 7 mmcfpd 55
Figure 30: Breakeven profile of Haynesville Operations, $6 million and 7 mmcfpd 56
Figure 31: Breakeven profile of Haynesville Operations, $7 million and 7 mmcfpd 56
Figure 32: Breakeven profile of Haynesville Operations, $8 million and 7 mmcfpd 57
Figure 33: Woodford Shale Map, 2008 64
Figure 34: Woodford Shale Production, 2003-2007 67
Figure 35: Woodford shale well profile 68
Figure 36: Breakeven profile of Woodford Operations, $5 million and 3 mmcfpd 70
Figure 37: Breakeven profile of Woodford Operations, $5 million and 4 mmcfpd 70
Figure 38: Breakeven profile of Woodford Operations, $5 million and 5 mmcfpd 71
Figure 39: Breakeven profile of Woodford Operations, $4 million and 4 mmcfpd 72
Figure 40: Breakeven profile of Woodford Operations, $5 million and 4 mmcfpd 72
Figure 41: Breakeven profile of Woodford Operations, $6 million and 4 mmcfpd 73
Figure 42: Bakken Shale map, 2008 77
Figure 43: Bakken Shale major drilling locations, 2008 79
Figure 44: Bakken Shale well Profile 83
Figure 45: Breakeven profile of Bakken Operations, $2 million and 150 boepd 85
Figure 46: Breakeven profile of Bakken Operations, $2 million and 200 boepd 85
Figure 47: Breakeven profile of Bakken Operations, $2 million and 250 boepd 86
Figure 48: Breakeven profile of Bakken Operations, $2 million and 250 boepd 87
Figure 49: Breakeven profile of Bakken Operations, $2.5 million and 250 boepd 87
Figure 50: Breakeven profile of Bakken Operations, $3 million and 250 boepd 88
Figure 51: Global Markets Direct Methodology 95

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