Today, www.Investorideas.com, an investor research portal that specializes in sector research including energy stocks, reported on the Woodford Shale play, including American Petro-Hunter, Inc. (OTC.BB: AAPH) and Devon (NYSE: DVN), as interest in energy stocks heats up.
The Woodford Shale formation has attracted some of the largest independent oil and gas companies including Devon Energy, XTO Energy, Petrohawk Energy, Southwestern Energy, Marathon Oil, Newfield Exploration and Continental Resources. Chesapeake Energy sold its Woodford position to BP in 2008.
Robert McIntosh, President & C.E.O.of American Petro-Hunter, Inc. (OTC.BB: AAPH) stated, “We are in the Woodford Shale Play, as it is becoming a major oil and gas producing reservoir across the Anadarko Basin, the Cherokee Platform and the Arkoma basin which trend east west across the State. Between 2003 and 2010, over 1,000 vertical and 300 horizontal wells have been drilled in the Woodford. Of these, 1,200 wells have produced 1.4 million barrels of oil and 560 billion cubic feet (Bcf) gas since 2004. The Woodford Shale has first generated the oil that filled many of the old, conventional reservoirs and now it’s being exploited as a reservoir in its own right. It is truly becoming a “world class oil and gas target”. All the majors are there. Devon is especially active and has just updated its 2010 Cana Project drilling plans where it now expects to drill 100 wells, up from the previously announced 80.
Oklahoma is one of the nation’s premier oil-producing states and the Woodford is a unique reservoir that offers tremendous potential for both oil and gas. The key is identifying the oil bearing parts and engineering the horizontal wells to drill along the shale which will, after fracking the oil shale, produce oil in very profitable economic rates. These wells are not inexpensive as we estimate $1.75 to $2.2 million to drill and complete a 1,500 foot lateral. But the reward is huge-as a well may potentially deliver 500 to 1,000 barrels per day which would pay back the capital investment in rapid fashion and allow excellent cash flow for the growth of the Company’s future. We feel we have a tremendous lease package that holds many locations for both horizontal and vertical wells and have implemented and planned an active 2011 drilling program.”
Chip Minty Manager, Media Relations of Devon (NYSE: DVN) reported to Investorideas.com, “The Woodford Cana Shale is another very exciting play within our asset portfolio. We are seeing outstanding results in this relatively young play, and we continue to move additional rigs into the area where we have seen strong production growth throughout this year. In the third quarter, our average daily production reached a record 117 million cubic feet of natural gas equivalent, and we expect our production there to more than double by the end of 2011,” said Dave Hager, Devon’s executive vice president of exploration and production.
“We think the Cana Woodford holds long-term promise for Devon, and we are pleased to have assembled a lease position of 240,000 net acres in the best parts of the liquids-rich play. Because of our success there, and the Cana’s outstanding economics, we continue to increase our investment. Currently, we have 19 Devon-operated rigs in the Cana, and we expect to add two more by the end of this year,” Hager said.
In November, Reuters quoted Marathon’s C.E.O. as saying “his company would focus more on Oklahoma’s Woodford shale next year because it represented better value than the Bakken. “
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