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As of December 31, 2010, we have
acquired or farmed-in leases totaling approximately 158,749
gross (88,722 net) acres and are continually attempting to
acquire additional acreage prospective for the Haynesville
Shale. During 2010, we drilled and completed 36 gross
Haynesville Shale wells with a 100% success rate. Our
Haynesville Shale drilling activities are located in five
primary leasehold areas in East Texas and Northwest Louisiana.
Our relatively low risk development
drilling program in this trend is primarily centered in and around
Rusk, Panola, Angelina and Nacogdoches counties, Texas and DeSoto
and Caddo parishes, Louisiana. We continue to build our acreage
position in this trend and hold 158,749 gross acres as of December
31, 2010 producing from and prospective for the Haynesville Shale.
As of year- end 2010, we drilled and completed a cumulative total of
85 wells in the trend with a 100% success rate. Our net production
volumes from our Haynesville Shale wells aggregated approximately
47,000 Mcfe per day in 2010, or approximately 51% of our total oil
and gas production for the year. Our 2011 capital expenditure budget
includes plans to utilize approximately 1 to 3 rigs to conduct
drilling operations on approximately 7 to 9 gross additional
Haynesville Shale horizontal wells.
Core Haynesville Shale
The Company's core Haynesville shale
drilling program is primarily concentrated in the Bethany-Longstreet
and Greenwood-Waskom fields in Caddo and DeSoto Parishes in
northwest Louisiana. The Company's core Haynesville Shale drilling
activity includes both operated and non-operated drilling in and
around its core acreage positions in northwest Louisiana. The
Company continues to build its acreage position in the trend and
currently holds approximately 30,000 gross (16,000 net) acres as of
December 31, 2010. The Company's net production volumes from its
core Haynesville Shale wells totaled approximately 37,000 Mcfe per
day in 2010, or approximately 40% of the Company's total production
for the year. In 2011, the Company estimates that it will spend
approximately $25 to 30 million on 5 to 7 gross wells.
Shelby Trough / Angelina River Trend
During the second half of 2010, the
Company spud its first Haynesville & Bossier Shale wells in the
Shelby Trough / Angelina River Trend area. The Company operates all
of its drilling activities, which are primarily located in
Nacogdoches, Angelina and Shelby counties, Texas. The Company
continues to build its acreage position in the trend and currently
holds approximately 48,500 gross (27,000 net) acres as of December
31, 2010. The Company's net production volumes from its Shelby
Trough wells totaled approximately 1,300 Mcfe per day in 2010, or
approximately 1% of the Company's total production for the year. In
2011, the Company estimates that it will spend approximately $20 to
30 million on 2 to 3 gross wells.
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