Penn Virginia Corporation, an oil and gas exploration and production company, has provided operational updates of Granite Wash, Eagle Ford Shale, Marcellus Shale, Haynesville Shale, Cotton Valley and Selma Chalk in US.
Three drilling rigs are currently drilling in the Granite Wash play in Oklahoma, with two rigs deployed in the South Clinton Field and the third rig drilling in our Powell discovery area. Overall our drilling activity decreased during the latter half of the third quarter in the South Clinton Field due to a reduction in outside operated rigs, but the rig count in the joint area of operations is expected to increase by early 2011.
Three (1.3 net) of the third quarter wells and one (0.7 net) fourth quarter well were drilled to test three of our exploratory prospect areas. Three wells drilled in the Powell/Cloud Chief and East Sayre prospect areas are not yet completed; however, open hole logs on both wells appear promising. The test well in one prospect, Mountain View, was unsuccessful. We do not believe the unsuccessful Mountain View well condemns the entire prospect since a different portion of the geological model associated with this prospect also needs to be tested. This additional test well will be drilled in 2011.
If the Powell/Cloud Chief and East Sayre wells are successful, we believe that the approximately 9,300 net acres comprising those areas have the potential of between 100 and 240 (25 to 65 net) Granite Wash drilling locations.
During the third quarter of 2010, we completed four (3.8 net) Haynesville Shale wells having IP rates ranging between 7.6 and 10.2 MMcfe per day, excluding one (0.8 net) well that had a casing failure as previously reported. Thirty-day IP rates for the three successful wells ranged between 5.3 and 8.7 MMcfe per day.
During the third quarter of 2010, we completed three (2.9 net) horizontal Cotton Valley wells having IP rates ranging between 2.5 and 4.1 MMcfe per day and thirty-day IP rates which averaged 2.9 MMcfe per day. We are encouraged with the results to date considering oil volumes are high on some wells and initial decline rates are less than anticipated. As with the Haynesville Shale, drilling in the Cotton Valley will be deferred until there is a meaningful recovery in natural gas prices.
During the third quarter of 2010, we completed five (4.9 net) horizontal Selma Chalk wells having IP rates ranging between 1.0 and 2.0 MMcfe per day. Thirty-day IP rates ranged between 0.9 and 1.5 MMcfe per day. As discussed above, we have decided to defer drilling in the Selma Chalk until there is a meaningful recovery in natural gas prices.
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