BarnettShaleOil.com

The Barnett Shale is a lot larger than originally believed. Some of the richest pockets have been found directly under Fort Worth, Texas, and energy companies are drilling wells right in suburban neighborhoods and golf courses to tap these abundant fields. The Barnett Shale is in the Fort Worth Basin and because of its maturity and age we are able to fracture and produce from this blanket formation. The Permian basin sets an example from its exploration history and research being from coral reef beds itself. The Barnett shale is expensive to drill and to produce. Further, the reservoirs may not live up to their billing.

The Barnett Shale is one of the largest and most active domestic natural gas plays in the U.S. Current production is in excess of 1.2 billion cubic feet of gas per day from over 3,800 producing wells and in excess of 126 rigs are actively developing the trend. The Barnett Shale is a 4,200 square mile region covering over eight (8) counties. In the Barnett there are approximately 1,900 to 2,200 successful wells either producing or waiting on pipelines. The Barnett Shale is a �tight� reservoir, meaning that in its natural state, the formation is resistant to the production of natural gas. However, recently completed vertical wells utilizing artificial fracture stimulation techniques have made the Barnett Shale a low-risk and profitable natural gas operation, making the Barnett Shale the largest natural gas field in Texas and one of the most important gas fields in the United States.

The Barnett Shale is creating jobs, boosting economic growth and providing additional tax revenues. At the 2007 Expo, nationally recognized economist Ray Perryman unveiled a study showing that in 2006 the Barnett Shale contributed $5.2 billion to the local economy. The Barnett Shale is a 4,200 square mile region covering over 8 counties. In the Barnett there are approximately 1,900-2,200 successful wells either producing or waiting on pipelines. The Barnett Shale is a large natural gas reservoir encompassing more than 5,000 square miles and covering at least 17 counties in North Texas. Many believe the Barnett Shale is the largest producing onshore natural gas field in the United States.

The Barnett shale is a zone worth drilling for if it was the only zone anticipated. In this area we anticipate excellent production for many years. The Barnett Shale is very thick pay zone and produces numerous intervals. Each new fracture opens up previously un-accessed intervals, which typically yields comparable production and effectively provides three to six additional producing intervals. The Barnett Shale is a geological formation of economic significance. The formation is estimated to stretch from the city of Dallas west and south, covering 5,000 square miles (13,000 km�) and at least 17 counties.

Gas well setup and initial drilling will produce about the same level of noise you’d hear near a typical construction site. 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 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. Estimated resources are as high as 140 Bcf per square mile across its 54,000 square miles. Though about 2,500 wells have been drilled in this field, there is a lot of action forthcoming.

Chesapeake is currently utilizing four rigs to further develop its leasehold of approximately 60,000 net acres in the Colony Granite Wash play that the company believes will accommodate the drilling of approximately 250 additional net horizontal wells over time. The company believes its current leasehold of approximately 75,000 net acres will accommodate the drilling of approximately 400 additional net horizontal wells over time. Chesapeake has also committed to more than $1 billion in 2007 for additional capital expenditures, as well as millions in community sponsorships, scholarships and neighborhood improvement programs. According to noted economist Ray Perryman, the Barnett Shale is now responsible for more than 55,000 permanent jobs and $5.2 billion in annual output - and the numbers continue to grow. Chesapeake said it will spend an additional $275 million in 2008 and $675 million in 2009. That spending may be funded through public capital markets instead of the financial markets due to the current economic environment, according to the company.

Chesapeake, with revenues in the billions last year, plans to spend $100 million and will devote three rigs full time to drill 45 to 50 wells around Johnson County in 2005. In addition to expansion, Chesapeake hopes to increase the existing wells’ daily production of 25 million cubic feet to 86 million cubic feet by 2006. Chesapeake claims to have them all, and, thus far, he concedes, nobody’s proven them wrong.

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 production contributes significantly to pollution of the air, water and land. The toxic chemicals and vast amounts of fresh water used make gas drilling a serious environmental risk.

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 in the Barnett Shale is affected by several factors, only some of which may be measured or calculated using log data, making gas content a poor predictor of well performance. However, a neural network technique has been developed to successfully estimate reservoir potential that relies on log derived qualitative and quantitative parameters.

Oil has also been start in lesser quantities, but plenty (with recent high oil prices) to be commercially doable. Oil and gas went from being 3.1 percent of the school district’s total taxable value to accounting for nearly a fourth of the value in 2005.

Approximately 3,500 gross (1,200 net) acres are subject to a Participation Agreement with Devon Energy Corporation in which RAM has the right to participate with a 36% working interest in each well proposed to be drilled on the contract area. The agreement is on a ‘drill-to-earn’ basis, which means that Devon can earn a 50% working interest and a 40% net revenue interest in a particular RAM lease by drilling and paying Devon’s proportionate share of the costs of a well on lands covered by the lease. Approximately 130 rigs are currently estimated to be working to develop Barnett Shale acreage in the region. According to the United States Geological Survey, “the Barnett Shale play has total resource potential of approximately 26 trillion cubic feet of natural gas.”.

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. Initially, the line has the capacity to deliver 250 million cubic feet per day. With added compression, this capacity could increase to 375 million cubic feet per day.

Ireland brings a combination of academics, industry and business experience. His career includes 20 years in the oil and gas industry in Houston, Tex. Ireland brings a combination of academics, industry and business experience. Our goal is to alleviate the confusion and misinformation about gas drilling, production and leasing.

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.

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