UPDATE 2-Petrohawk shares up on Haynesville shale well results

lunedì 30 giugno 2008 18:30

(Recasts, adds analyst comments)

By Hezron Selvi

BANGALORE, June 30 (Reuters) - Shares of Petrohawk Energy Corp (HK.N: Quotazione) touched a new year high, after the oil and gas producer said its initial horizontal well in the Haynesville Shale in Louisiana started production at an average rate of about 16.8 million cubic feet of natural gas per day.

"This rate is the highest initial rate from the three wells press released by industry," JP Morgan analyst Joseph Allman wrote in a research note.

In May, Penn Virginia Corp PVA.N said its first horizontal test well in the Haynesville shale started production at a rate of about 8.0 million cubic feet of natural gas per day.

Canada's biggest oil and gas producer EnCana Corp (ECA.TO: Quotazione) has also reported that its well in the Haynesville shale flowed at an initial production rate of more than 8 million cubic feet of natural gas per day.

In March, Chesapeake Energy's (CHK.N: Quotazione) CEO Aubrey McClendon said Haynesville may hold an eye-popping 20 trillion cubic feet equivalent of potential reserves -- nearly equal to the amount of gas consumed in the United States last year.

"This initial well not only increases the industry's sample set of horizontal drilling results, but also helps confirm the large gas in-place estimates driving the land grab to gain access to this over-pressured reservoir," BMO Capital Markets analyst Dan McSpirit said in a report to clients.

Advances in drilling and high oil and natural gas prices have triggered a frenzy of exploration activity among energy companies in "unconventional" fields like the Haynesville, where oil and natural gas are locked in substances like shale that were once considered too costly for drilling.   Continua...