Cotton Valley Formation

The Cotton Valley formation and Haynesville Shale overlay each other through most of a productive trend, separated by only a few hundred feet. Accordingly, they can often be produced together in the same "wellbore." However, for our discussions here, we have broken them into separate categories.

What is the Cotton Valley Formation?

The Productive Cotton Valley Sandstone Formation is located in East Texas and in Northwest Louisiana. This Cotton Valley Trend is made up of laminated shale, sandstone, and clay deposits. Petromax produces the Cotton Valley Sandstone gas in Rusk County, Gregg County, and Harrison County Texas.

How deep is the Cotton Valley Field?

The Cotton Valley sandstone formation in East Texas is about 9,200 – 11,000 feet deep. Below the Cotton Valley Sandstone is the Haynesville/Bossier Shale. Below this shale, is the Cotton Valley Lime Formation. Above the Cotton Valley formation, there is productive Travis Peak, Pettit, and Rodessa Formations. Many companies are producing from 4-6 fraced intervals, simultaneously.

What is PetroMax's experience in the Cotton Valley?

PetroMax (PMO) began development in the Cotton Valley Sandstone Trend in 2005. To date we have produced 7.233 Billion Cubic Feet of gas in the Cotton Valley Formation from 2005 through 2008.

Devon Energy, one of the other East Texas operators, permitted, drilled and completed their first horizontal Cotton Valley well in 2007 in Panola County just East of our leases with a 6 Stage fracture stimulation and completed the well at a flowing rate of 6.635 MMCF/day and 105 Barrels of Oil per day on 12/64th choke. After analyzing the results of horizontal drilling in the Cotton Valley Sandstone, and have drilled and completed two successful horizontal wells and are currently completing our third. Our Hudman 8H was completed producing 4.87 MMCF/day, the largest Cotton Valley well in the history of Harrison County at the time.

Drilling has been successful for PMO in 32 out of 33 wells to date in the Cotton Valley Trend. We are constantly increasing our experience, resulting in improved results through the application of evolving technologies.

Haynesville Shale

What Is The Haynesville Shale

The Haynesville Shale is a shale formation containing oil and gas lying approximately 10,500 to 13,000 feet sub-surface in northwest Louisiana and East Texas. It is also called the Bossier shale in some places. Some geologists classify the two as the same. Sub-surface, the formations dip southward toward the Gulf of Mexico; thus, the formation is found deeper the further south wells are drilled.

Shale is sometimes called mudstone but mudstone, typically, does not have the laminations that shale does. Shale is very "tight," meaning it has little permeability, a measure of the rock's ability to allow a liquid or gas to pass through it. Usually, shales have low porosity; however, the Haynesville shale's porosity has been surprisingly higher than other shales. The higher the porosity a rock formation, the more oil or gas its pore spaces can contain.

Oil & Gas Leasing Haynesville Shale Play East Texas & North Louisiana

The Haynesville shale play in East Texas and North Louisiana is already been referred to as one of the largest discoveries of natural gas in the history of the US. During 2008, leasing activity by oil and gas companies has accelerated to a feverish pitch. At this time, the areal extent of this shale play is still growing. Many more wells will have to be drilled to define the northern, eastern, southern and western boundaries.

What the oil and gas industry is saying about the Haynesville Shale

Chesapeake CEO Aubrey McClendon said in published reports his company estimates the Haynesville Shale holds at least 7.5 trillion cubic feet of natural gas and maybe up to 20 trillion cubic feet. By comparison, Chesapeake at the end of 2007 reported proved reserves in the Barnett Shale at just over 2 trillion cubic feet, which until now gives it the reputation of being the largest onshore natural gas field in the United States.

Based on its geoscientific, petrophysical and engineering research during the past two years and the results of three horizontal and four vertical wells it has drilled, Chesapeake believes the Haynesville Shale play could potentially have a larger impact on the company than any other play in which it has participated to date.
Chesapeake Energy CEO Aubrey McCendon
The firm believes that Haynesville Shale could develop into the next growth driver for Devon Energy replacing the maturing Barnett Shale.
Jefferies & Co.
Our models suggest that the Haynesville shale, if developed in our most bullish case, could be bigger than the current size of the Barnett within five years.
Robert Clarke, Upstream Analyst for Wood Mackenzie

How does the Haynesville Shale compare to the current Barnett Shale Production?

The Haynesville Shale is estimated to have far more natural gas than the Barnett Shale. The Haynesville is the source rock to the prolific Cotton Valley and Hosston formations. The play has limited faulting and higher porosity than the Barnett. Recovery estimates are 30% of gas-in-place from a 61 m (200 ft) thick reservoir.

We expect the Haynesville to develop at a faster rate than the Barnett and Fayetteville, as operators are testing the play with knowledge transferred from these other two prolific shales. Evidence of early Haynesville success is seen in the reported per well productivity, the pace of leasing, and operators' aggressive development schedules. Our three supply cases yield gross production of between 2.5 and 5.5 bcfd by 2014. These staggering volumes are supported by data shared by the largest participants in the play.

Active Wells

The Active Wells list contains all PetroMax wells that are planned but have yet to be been drilled, are currently undergoing drilling operations, or have been completed within the previous 3 months.