The market has brutally sold off many exploration and production stocks with leverage to natural gas, including ones with exposure to the Haynesville Shale. This is due to the weakness in natural gas prices and the concern with large supply additions over the next year as the rig count ramps up in 2010.
Cabot Oil and Gas (COG) ramps up activity in the Marcellus Shale
CNX Gas (CXG) released information on the productivity of horizontal versus vertical wells in the Marcellus Shale. A typical horizontal well in the Marcellus Shale has an initial production (IP) rate of 3.0 Mmcf per day, an Estimated Ultimate Recovery (EUR) of 3.0 Bcf, and costs $5.0 million.
Newfield Exploration (NFX) is an active player in the Bakken Shale area in both North Dakota and Montana, with 498,000 net acres in the Williston Basin. The company does not say how much of the acreage is prospective for the Bakken Shale, except that it characterizes 190,000 acres as development and exploitation, and 310,000 as exploration.