Barnett Shale is a massive natural gas deposit that occurs naturally deep under approximately seven counties in North Central Texas and including northeast Tarrant County. The Barnett field stretches from Dallas west approximately 5,000 square miles and produces about 1.2 billion cubic feet of natural gas a day according to some industry reports. Barnett Shale is deeply fractured, with fissures that tended to be sealed by calcium carbonate. The field went undiscovered until Mitchell Energy experimented with employing large gel fracture methods to open the wells to natural gas.
Gas drilling is creating jobs and helping retail sales during a tough time, giving Fort Worth a counterweight against the slowing economy. Nationwide, soaring prices for gasoline are leading to calls for more offshore drilling for oil. Gas saturation seems constant across the region, so it is tempting to invoke increased natural fracturing in these areas as the explanation. 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 companies are meeting with neighborhood associations to better explain the complexities of drilling in an urban setting. Residents are telling the companies what they think, many are signing leases and earning big money for their Barnett Shale mineral rights.
Devon Energy acquired Mitchell Energy in 2002, and has established itself as the leading producer from the Barnett Shale. The success that independents have had in producing from the Barnett Shale is beginning to attract the interest of the large majors, like Exxon. 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 recently completed two additional wells that are waiting on pipeline connections and is in the process of completing a third additional well. Devon currently is drilling a fourth well and has proposed four additional new wells on our jointly owned acreage, and we expect to participate in all four proposed wells.
Oil and gas investors can realize fast ROIs. Barnett Shale Oil has also been found in lesser quantities, but sufficient with recent high oil prices to be commercially viable. Oil and Gas Experts have suggested that it may be the largest onshore natural gas field in the US although new estimates from the newly discovered Marcellus Formation in Appalachia may equal the Barnett. The field is proven to have 2.5 trillion cu.
Chesapeake is continuing its drilling and leasing program in the Barnett Shale, particularly in the Core and Tier 1 area of Tarrant, Johnson, and western Dallas counties. The companys net natural gas production in the Barnett Shale is now approximately 450 MMcfe/d.
