Current Barnett Shale Info
By Barnett Shale Team April 20, 2008
Current Barnett Shale Info.
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Gas shale well productivity varies widely by basin, due to variations in the natural fracturing, richness of the shale, net thickness, and initial rates. The major change has been in well completion and operating methods, which have led to increase per well reserves. Gas well setup and initial drilling will produce about the same level of noise you’d hear near a typical construction site. Gas saturation seems constant across the region, so it is tempting to invoke increased natural fracturing in these areas as the explanation.
Estimates of the size of Barnett Shale’s reserves are rapidly increasing as the productive limits have not been defined. The effect of the Barnett Shale is starting to make a big impact on the nation’s gas business at a time of declining domestic production and projections of rising demand. Estimates now suggest that there are 50 to 75 tcf of recoverable gas in these reservoirs with nearly 600 tcf in place. These surveys assume that only about 10 percent of the gas in these reserves is recoverable.
Fractures offer such a pathway. Fracture mapping is important to minimize the likelihood of connecting into the underlying Ellenburger aquifer. By determining proper wellbore orientation and measuring fracture growth as a function of treatment, design frac rates and volumes can be varied to avoid water-bearing strata. Fractures offer such a pathway. Some years ago, there was a lot of hype about another Texas play, the Austin Chalk which is a carbonate reservoir rock that has an extensive network of natural fractures.
Drilling makes economic sense at about $4.50 per million Btu. This year, natural gas has been selling for $6 to $8 per million Btu. Drilling through the shale is like drilling through a Brunswick pool table or bowling ball. Yet we find several interesting factors in the shale itself such as micro fractures that travel from the north east to the southwest. Drilling commenced on June 30, 2006 and as of this date, 7,500 vertical feet have been drilled. KOKO has acquired a 1% working interest.
Natural fractures typically trend northwest-southeast in a narrow fairway. Induced fractures typically occur in a broad northeast- southwest fairway, about 90 degrees to the natural fracture trend. Natural gas produced on location is used to fire the distilling units that in turn boil the returned fracture fluid and produce fresh distilled water. The distilled water can then be used to fracture treat another Barnett Shale well. Natural gas is the cleanest-burning fossil fuel, burning 43% more cleanly than coal and 28% more cleanly than oil, aiding in the reduction of global warming and greenhouse emissions. In addition to warming your home, heating your water or cooking your food, natural gas can fuel electricity plants, so even all-electric homes can benefit from natural gas.
Investors can put their money in a money-market fund or CD and get 4 or 5 percent or in an MLP and get 7 or 8 or 9 percent and maybe some capital appreciation. This is a fabulous trend for the exploration and production companies in this city. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question.
Production has been firmly established with over 4,700 successfully completed wells drilled, the field encompassing over 500,000 acres. It is currently producing in excess of one billion cubic feet per day. Production has reached an estimated level of 3.7 billion cubic feet per day, accounting for 4.3 percent of total U.S. Projections are that production will increase to between 6.5 and 9.7 billion cubic feet per day by 2014-15.
Oil and gas investors can realize fast ROI’s. There is currently a huge Hunton Lime re-completion, de-watering play revitalization plan coming right through our back yard and we have at least 6-8 existing “cased Holes” ready for re- completion. Oil has also been found in lesser quantities, but sufficient (with recent high oil prices) to be commercially viable.
Initial daily production from wells drilled under the JOA with Devon has averaged 2.3 MMcfe. Similarly, estimated ultimate recoverable reserves from the wells drilled under the JOA with Devon, as of June 30, 2007, average approximately 2.3 Bcfe per well. Initial drilling has focused and will continue to focus on numerous (i) development prospects with updip PUD potential, (ii) extensional prospects with trapped bypassed hydrocarbons and (iii) near field exploratory prospects with analog production.
Worth, Texas and 17 other surrounding counties. The major energy companies need specific equipment that allows them to go into these heavily populated neighborhoods to extract the gas with a minimal effect on the people and the environment. Worth area could lead to a de-watering that affects wells.
Devon is also moving outside the core area to develop wells in Johnson and Parker Counties. It employs around 800 contractors for its work in the area. Devon Energy, the largest natural gas producer in the Barnett Shale and also in Texas, said Wednesday it is drilling its 1,000th horizontal well in the Barnett Shale. The well, near Boyd, is expected to cost between $2.5 million and $3.3 million, the company said.
Current measuring techniques have concluded that the thickness of the Barnett Shale averages between 500 and 1,000 feet. Due to its thickness, the Barnett Shale can produce multiple pay zones within one well with various potential pay zones being accessed at a relatively minor cost. Currently, in the United States, we produce around 52-53 BCF a day domestically. The market demand is around 60 BCF a day.
Prices then usually bottom out in summer as oil prices peak. I wouldn’t be surprised to see natural gas over $9 per Mcf this winter. Prices are going through the roof. The way industry sees this play is that ultimately we will recover between 52 TCF to 100+ TCF (I think that they are way optimistic on this.) It makes it one of the largest gas discoveries in North America.
Tags: aquifer, austin chalk, Barnett Shale, bowling ball, brunswick pool table, btu, construction site, demand estimates, economic sense, extensive network, fracture, gas business, gas saturation, initial rates, natural s, reservoir rock, reservoirs, tcf, typical construction, well completion
