Shale Daily

Energen Resources Corp. has purchased three-year leases for about 17,000 net acres in the Bone Spring and Avalon shale trends in the Permian Basin from various Texas state agencies and other entities for $15.3 million, said parent Energen Corp. Based on 320-acre spacing, the company estimates that the acreage in Reeves, Ward, Loving and Winkler counties offers potential for approximately 50 Bone Spring locations and 50 Avalon Shale locations. The typical Bone Spring well has estimated ultimate recovery of 400,000-500,000 boe, the company said. Energen Resources estimates that drilling and completion costs are approximately $7.5 million per well. It has drilled eight Bone Spring wells in Ward and Winkler counties and participated in another 23 wells. The company announced plans in December to drill another 13 Bone Spring net wells in 2011 and at least one Avalon Shale well. Potential drilling plans on the new leases in 2011 have not been determined.

Houston-based Magnum Hunter Resources Corp. plans to spend a good chunk of its 2011 drilling and operational budget not far from home — in the Eagle Ford Shale play of South Texas. In outlining recent drilling results there the company emphasized that it’s learning as it goes.

Chief Gathering LLC, a subsidiary of Chief Oil & Gas, has been fined $34,000 and has agreed to surrender a discharge permit for operations in four counties in Pennsylvania’s Marcellus Shale area after “illegally discharging hydrostatic testing water at a pipeline project” in Lycoming County, PA, the state’s Department of Environmental Protection (DEP) said.

With the booming U.S. industry players keeping a close eye out for the opening of global markets, India reported completing its first shale gas well Tuesday as some observers of the Indian energy space speculate that the nation may have its largest natural gas deposits locked in shale. U.S. oilfield services provider Schlumberger drilled India’s first well.

West Virginia lawmakers have drafted revised rules and fees for Marcellus Shale drillers that could hike drilling and license fees by thousands of dollars.

Calgary-based Talisman Energy Inc. said Tuesday it plans to reduce the number of rigs it operates in the Marcellus Shale by the end of the year, but it will increase development in the Eagle Ford and Farrell Creek shales, which are both liquids-rich.

Newfield Exploration Co. said Monday its hunch that the Maverick Basin in the Eagle Ford Shale “would hold thick, high-quality” pay has turned out to be true as it released initial results from its Eagle Ford assessment program.

Oil- and liquids-rich natural gas plays marched to the forefront of drilling activity in the past year with the Niobrara, Eagle Ford and Bakken leading a 38% increase in active rigs from 684 active rigs a year ago to 947 rigs as of Jan. 7, according to a shale basin rig count compiled by NGI’s Shale Daily.

National Fuel Gas Co.’s exploration subsidiary is adding 42 Bcfe of proved natural gas reserves to its Marcellus Shale holdings in a deal with joint venture (JV) partner EOG Resources Inc.