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Unconventional Natural Gas Report Providing the E&P community with the latest information, data and resources for the unconventional natural gas industry. No. 35-4, November 2009

RECENT UNCONVENTIONAL RESOURCE PUBLICATIONS GAS SHALE

• Bybee, Karen. Entrance Pressure Of Oil-Based Mud Into Shale. Journal of Petroleum Technology, V. 61, N. 11, pp. 63-64, November 2009.

• Duncan, Peter M.; Williams-Stroud, Sherilyn. Marcellus Microseismic: Microseismic Monitoring Of The Fracturing Process In The Vast Shale Is Proving To Be A Key Tool In Its Development. Oil and Gas Investor, V. 29, N. 11, November 2009

• Haines, Leslie. Independent Spokesman: As Swift Energy Co. President, Bruce H. Vincent Takes Aim At Renewing Production Growth, And As New IPAA Chairman, He Wants Capitol Hill To Listen To Independents. Oil and Gas Investor, V. 29, N. 11, November 2009

• Milam, Ken. Database Gathers Europe Shale Data. AAPG Explorer, V. 30, N. 11, pp. 10, November 2009. • Rach, Nana M. Drilling Horizontals In The Marcellus Shale. Hart’s E&P Magazine, V. 82, N. 11, pp. 29, November 2009. • Tan, Chee Phuat; Povstyanova, Magdealna, Mohluddin, Mohammed Ahmed; Rahim, Mohd Heimi Abd; Qadamani, Marwan

Ahmad. Fluid Design Solves Shale Instability Problem. Hart’s E&P Magazine, V. 82, N. 11, pp. 66-67, November 2009.

TIGHT GAS • Ferguson, Marcelle L.; Johnson, Michael A. Comparing Friction Reducers’ Performance In Produced Water From

Tight Gas Shales. Journal of Petroleum Technology, V. 61, N. 11, pp. 24-27, November 2009.

COALBED METHANE • Dai, J.; Zou, C.; Li, J.; Ni, Y.; Hu, G.; Zhang, X.; Liu, Q.; Yang, C.; Hu, A. Carbon Isotopes of Middle-Lower Jurassic

Coal-Derived Alkane Gases From The Major Basins Of Northwestern China. International Journal of Coal Geology, V 80, N. 2, pp. 124-134, November 2009.

• Erdenetsogt, B.O.; Lee, I.; Bata-Erdene, D.; Jargal L. Mongolian Coal-Bearing Basins: Geological Settings, Coal Characteristics, Distribution, And Resources. International Journal of Coal Geology, V 80, N. 2, pp. 87-104, November 2009.

• Hower, J.C.; O’Keefe, J.M.K.; Watt, M.A.; Pratt, T.J.; Eble, C.F.; Stucker, J.D.; Richardson, A>R.; Kostova, I.J. Notes On The Origin Of Inertinite Macerals In Coals: Observations On The Importance Of Fungi In The Origin Of Macrinite. International Journal of Coal Geology, V 80, N. 2, pp. 135-143, November 2009.

• Salap, S.; Karslioglu, M.O.; Demirel, N. Development Of A GIS-Based Monitoring And Management System For Underground Coal Mining Safety. International Journal of Coal Geology, V 80, N. 2, pp. 87-104, November 2009.

• Sykorova, I.; Havelcova, M.; Trejtnarova, H.; Matysova, P.; Vasicek, M.; Kribek, B.; Suchy, V.; Kotlik, B. Characterization Of Organic Matter In Dusts And Fluvial Sediments From Exposed Areas Of Downtgwn Prague, Czech Republic. International Journal of Coal Geology, V 80, N. 2, pp. 69-86, November 2009.

• Yao, Y.; Liu, D.; CHe, Y.; Tang, D.; Tang, S.; Huang, W. Non-Destructive Characterization Of Coal Samples From China Using Microfocus X-Ray Computed Tomography. International Journal of Coal Geology, V 80, N. 2, pp. 124-134, November 2009.

Thank You Sponsors!

TABLE OF CONTENTS Recent Publications 01-02 Calendar 03-03 FEATURE Overview 03-11 Barnett Shale Rig Report 11-11 Websites 12-12 Operators 12-15 Online Resources 15-16 OGI Articles 16-25 Activity Highlights 26-27 Hart’s A&D 27-28 RRC Statistics 29-31 Selected References 31-41

Compiled by:

Ann Priestman Hart Energy Publishing

E-mail: apriestman@hartenergy.com

November Feature Barnett Shale

Fort Worth Basin, Texas

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SHALE OIL • Haines, Leslie. Remaking Toreador: With A New Chief Executive Officer And New Strategy, Toreador Resources

Has Revamped Its Finances And Is Aiming At A Bakken Shale Look-Alike In France. Oil and Gas Investor, V. 29, N. 11, November 2009

• Moritis, Guntis. Oil Shale Adds To Energy Mix. Oil & Gas Journal, V. 107, N. 42, pp. 14, November 9, 2009. • Snow, Nick. Salazar Announces Oil Shale Lease Round, Addenda Inquiry. Oil & Gas Journal, V. 107, N. 4, pp 20-21,

October 26, 2009.

GENERAL • Haines, Leslie. Natural Gas Questions: For Natural Gas Players, It Is Two Steps Forward, And One Back. Oil and

Gas Investor, V. 29, N. 11, November 2009 • Rathan, Daniel. Jvs For E&P: Joint Ventures Are Becoming The New Transaction Of Choice. Up-Front Preparation

Is Key To Achieving The Most Profitable Structure. Oil and Gas Investor, V. 29, N. 11, November 2009 • Snow, Nick. Federal, State Tax Prospects Clouds Independents’ Outlook. Oil & Gas Journal, V> 107, N. 41, pp. 20-24,

November 2, 2009.

CALENDAR OF UNG EVENTS November 30, 2009 New York Marcellus Shale Natural Gas Summit: Challenges and Opportunities. Otwego, NY. December 2-3, 2009 Advanced Horizontal Well Fracturing Workshop, Pittsburgh, PA. December 3, 2009 PTTC Workshop, “Unconventional Reservoirs Core Workshop.” Colorado School of Mines, Golden, CO.

Contact Mary Carr 303-273-3107. December 8-10, 2009 Emerging Unconventional Resources Conference & Exhibition. Shreveport. LA. January 26, 2010 SPE Denver Section Short Course. “Horizontal Well Completions.” Instructor Steve Maathis, Baker Hughes

Inc. 707 17th Street, Denver, CO. Contact Darien O’Brien 303-864-6015. February 11-12, 2010 NAPE Expo 2010, GRB Convention Center, Houston, TX. February 1-3, 2010 SPE Fractured & Tight Reservoir Characterization & Development Challenges. Workshop,

Kuwait City, Kuwait. February 2-4, 2010 IADC/SPE Drilling Conference. Conference, New Orleans, Louisiana, LA. February 23-25, 2010 SPE Unconventional Gas Conference. Conference, Pittsburgh, PA. March 21-24, 2010 Gas Processors Association Annual Convention, Hilton, Hotel, Austin, TX. March 30, 2010 DUG: The Technical Workshop, Omni Fort Worth, Fort Worth, TX. March 31, 2010 DUG: Developing Unconventional Gas 2010, Omni Fort Worth, Fort Worth, TX. April 6-8, 2010 Rocky Mountain Unconventional Resources Conference and Exhibition. OMNI Interlocken,

Denver, CO. April 11-14, 2010 2010 AAPG Annual Convention & Exhibition. New Orleans, LA. April 27-29, 2010 SPE Tight Gas Completions: Technology Applications and Best Practices. Workshop, Denver, CO. May 3-6, 2010 Offshore Technology Conference, Reliant Park, Houston, TX. May 16-18, 2010 AAPG Southwest Section Annual Conference, Dallas, TX May 17-20, 2010 SPE Unconventional Gas Production. Workshop, Krakow, Poland. May 26-30, 2010 SPE Western North America Regional Meeting. Conference, Anaheim, California. June 6-10, 2010. Gordon Research Conference on Natural Gas Hydrates. Colby College, Waterville, Maine. June 13-16, 2010 AAPG Rocky Mountain Section Meeting. Durango, CO August 26-27, 2010 Summer NAPE 2010, GRB Convention Center, Houston, TX. September 12-15, 2010 2010 AAPG International Comference & Exhibition, Calgary, AB, Canada September 20-22, 2010 SPE Annual Technical Conference and Exhibition. Conference, Florence, Italy. November 203, 2010 SPE Tight Gas Completions Conference. Conference, San Antonio, TX.

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NOVEMBER FEATURE

Barnett Shale Fort Worth Basin, TX CORE COUNTIES:

Denton, Johnson, Tarrant, Wise, TX. NON-CORE Counties

Bosque, Clay, Comanche, Cooke, Dallas, Ellis, Erath, Hamilton, Hill, Hood, Jack, Montague, Palo Pint, Parker Somervell, TX.

OVERVIEW Geologic Controls on the Growth of Petroleum Reserves U.S. Geological Survey Bulletin 2172-I http://pubs.usgs.gov/bul/b2172-i/pdf/B2172-I.pdf Barnett Shale The Barnett Shale of Middle to Late Mississippian age (Lancaster and others, 1993) is an unconventional (or continuous) gas reservoir in the Fort Worth Basin of north Texas (Pollastro and others, 2004; Pollastro and others, 2007; fig. 3). The formation crops out on the north flank of the Llano uplift of central Texas (Fig. 4) and extends into the subsurface north and northeast from there into the basin (Henry, 1982; Lancaster and others, 1993). Gas has been produced from the formation since 1981, largely from rocks positioned down the hydrologic gradient from water-saturated rocks (Kuuskraa and others, 1998), and although oil has been discovered in some areas, its low flow rate makes oil extraction largely uneconomic (Bowker, 2002). Since about the year 2000, however, gas production has increased dramatically (Pollastro and others, 2004), largely owing to the recognition and refinement of appropriate reservoir stimulation technologies (Bowker, 2007). Because of its relatively recent production history, publicly available information is limited; nevertheless, the Barnett recently became the largest gas-producing formation in Texas (Bowker, 2007).

The Barnett Shale, which has been divided into three informal members in the Fort Worth Basin, reaches a maximum thickness of about 650 ft (Pollastro and others, 2007). Principal producing intervals are marine shale units, informally termed the lower shale (average thickness 300 ft in producing region) and upper shale (average thickness 150 ft in producing region). In much of the area of current production, the two shale members are separated by a limestone of variable thickness. Constituents of the shales include quartz (possibly altered radiolarian tests), clay (dominantly smectite), carbonate, feldspar, and organic matter.

Reservoirs in the Barnett Shale are grouped in a single shale category (table 6). Until recently, most production has been from the lower shale member, although appreciable production is now being realized from the upper shale member (Bowker, 2002). Both members characteristically have a high content of organic material, which is largely Type–II (Jarvie and others, 2001; Hill and others, 2007). In general, the average total organic carbon in both members is about 4 to 5 percent (Jarvie and others, 2007), although in places the Barnett is thought to have contained as much as 20 percent total organic carbon when it was deposited (Bowker, 2002). The organic material in these shales is the source of the gas produced from them, thereby defining these reservoirs as self sourced.

Recent studies have been undertaken to better understand the variability and degree of thermal maturity of the organic matter in the Barnett Shale in the Fort Worth Basin. Within the area of gas production, there is an eastwardly increase in vitrinite reflectance (Ro) from about 1.1 to >1.9 percent (Pollastro and others, 2007). Interestingly, portions of the Barnett closest to the Ouachita thrust belt, which marks the east margin of the Fort Worth Basin (fig. 3), tend to possess the highest degree of thermal maturity, whereas the Barnett is less thermally mature in the deepest part of the basin; this difference suggests a relation between maturation and the Ouachita thrust belt (Bowker, 2002). Outside the area of gas production, in areas where Ro<1.1 percent, oil is the common hydrocarbon but it is uneconomic to produce owing to low porosity and permeability of the rocks (Bowker, 2002). Nevertheless, the presence of oil in areas of lower thermal maturity and gas in the more thermally mature rock, along with the nature (Type–II) of the organic matter, suggests that the gas was generated either by primary cracking of kerogen or by cracking of gas from oil, or both (Jarvie and others, 2001; Hill and others, 2007; Jarvie and others, 2007). Effective matrix porosity and permeability in Barnett Shale reservoirs are low. The productive portions have an average porosity of <6 percent and permeabilities are exceedingly low, typically in the nanodarcy range (Bowker, 2002). Although fractures, both induced and natural, play a critical role in the producibility of gas from Barnett reservoirs, more than a decade of experimentation and research (largely by Mitchell Energy and Development Corporation) has demonstrated that the best production is in areas lacking large natural faults and fractures. Apparently, where open, such features facilitated slow but possibly continuous migration of gas out of the Barnett into other formations or to the surface. Furthermore, where mineralized with authigenic calcite, the fractures are largely impermeable (Bowker, 2002). In contrast to the commonly detrimental affects of natural fractures on production, induced fractures are critical for production. Results of experiments and research have indicated that massive induced fracturing through well stimulation was necessary to achieve economic levels of gas production from the formation (Lancaster and others, 1993; Bowker, 2002). Induced fracturing disrupts the apparent pressure equilibrium in the reservoirs, allowing gas, whether in matrix porosity or possibly sorbed onto organic material, to diffuse into the borehole through the porosity and permeability created by the induced fractures (Bowker, 2002). Although natural fractures may contribute to gas flow, the permeability of most natural fractures is low relative to that produced by induced fractures; thus, natural fractures contribute only in a subordinate way to gas production.

http://www.netl.doe.gov/technologies/oil-gas/Petroleum/projects/EP

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Ball, Mahlon, M.; Perry, William J. Jr. Bend Arch-Fort Worth Basin, Province 5045 (Province 45) http://certmapper.cr.usgs.gov/data/noga95/prov45/text/prov45.pdf

UNCONVENTIONAL PLAY Continuous-Type Play

4503. MISSISSIPPIAN BARNETT SHALE (HYPOTHETICAL) The definitive characteristic of this hypothetical continuous-type unconventional play is the organic shaly nature of the combined reservoir and source rock, the Mississippian Barnett Shale. Production of 34.5 BCFG through 1990, occurred in a single field, Newark East, in southwest Wise County. This play is classified as both hypothetical and unconventional because it is limited to a single production occurrence, and its reservoir permeability of 0.l mD falls in the unconventional-play category. Reservoir depth is 7,000 ft. The limits of the play encircle the single known occurrence and were drawn simply to acknowledge the broad distribution of the reservoir facies in the province. The reservoir quality is the riskiest aspect of the play and was deemed to be so questionable that the play was not individually assessed. Resource potential: Risk for additional producible discoveries in this play is high but potential for additional discoveries is also significant.

Assessment of Undiscovered Oil and Gas Resources of the Bend Arch-Fort Worth Basin Province of North-Central Texas and Southwestern Oklahoma, 2003. http://pubs.usgs.gov/fs/2004/3022/fs-2004-3022.pdf Resource Summary The USGS assessment of undiscovered conventional oil and gas and undiscovered continuous (unconventional) gas within the Bend Arch-Fort Worth Basin Province resulted in estimated means of 26.7 trillion cubic feet of gas (TCFG), 98.5 million barrels of oil (MMBO), and a mean of 1.1 billion barrels of natural gas liquids (BBNGL) in the three TPSs that were assessed (table 1). Nearly all of the undiscovered gas resource (98 percent, or 26.2 TCFG) is considered to be in continuous accumulations of nonassociated gas trapped in strata of two of the three Mississippian-age Barnett Shale AUs — the Greater Newark East Frac- Barrier Continuous Barnett Shale Gas AU and the Extended Continuous Barnett Shale Gas AU — of the Barnett-Paleozoic TPS. The third AU within this TPS, the Hypothetical Basin-Arch Barnett Shale Oil AU, was not quantitatively assessed because of a lack of data. The potentially giant continuous shale-gas resource (26.2 TCF) within the two AUs of the Barnett-Paleozoic TPS had not been previously assessed and is included as an addition to reserves by the USGS (table 1). The remaining 467 billion cubic feet of gas (BCFG) of the estimated undiscovered gas resource in the Province is in conventional nonassociated gas accumulations (358.6 BCFG) and associated/dissolved gas in conventional oil accumulations (108.4 BCFG). The Barnett-Paleozoic TPS is estimated to contain a mean of 409.2 BCFG of conventional gas, or about 88 percent of all undiscovered conventional gas, and about 64.6 MMB of conventional oil, or about 65 percent of all undiscovered oil (table 1) in the Bend Arch-Fort Worth Basin Province. Two smaller TPSs, the Barnett-Hardeman Basin TPS and the Pennsylvanian Bend-Broken Bone Graben TPS, are estimated to contain a total mean of about 12 percent (57.7 BCFG) of undiscovered conventional gas, and about 35 percent (33.9 MMBO) of the undiscovered conventional oil (table 1) in the Province. Because of the lack of data, neither the Hypothetical Continuous Fractured Barnett Shale Oil AU of the Barnett-Hardeman Basin TPS, nor the Hypothetical Pennsylvanian-Lower Permian Coal-Bed Gas AU of the Pennsylvanian- Lower Permian Coal-Bed Gas TPS, was quantitatively assessed (table 1).

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Overview Intrastate natural gas pipelines operate within State borders and link natural gas producers to local markets and to the interstate pipeline network. Approximately 29 percent of the total miles of natural gas pipeline in the U.S. are intrastate pipelines. Although an intrastate pipeline system is defined as one that operates totally within a State, an intrastate pipeline company may have operations in more than one State. As long as these operations are separate, that is, they do not physically interconnect, they are considered intrastate, and are not jurisdictional to the Federal Energy Regulatory Commission (FERC). More than 90 intrastate natural gas pipelines operate in the lower-48 States. Texas: • Texas is the top ranked natural gas consuming State. • Intrastate pipelines in Texas account for 45,000 of the 58,600 miles

of natural gas pipelines in the State. • The largest intrastate pipelines in Texas are Enterprise Texas

Pipeline Company (8,750 miles) and the Energy Transfer Partners LP (8,800 miles).

• The intrastate network in Texas has experienced significant growth over the past several years as a result of increased demand for pipeline capacity caused by the rapid development and expansion of natural gas production in the Barnett Shale Formation.

• New pipelines have been built, and expansions to existing ones undertaken, to meet increased demand.

Intrastate Natural Gas Pipeline Segment http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/intrastate.html

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Barnett Shale Information http://www.rrc.state.tx.us/barnettshale/index.php The Barnett Shale is a hydrocarbon-producing geological formation of great economic significance to Texas. It consists of sedimentary rocks and the productive part of the formation is estimated to stretch from the city of Dallas west and south, covering 5,000 square miles (13,000 km²) and at least 18 counties. Some experts say that the Barnett Shale is the largest onshore natural gas field in the United States. The field name for the productive portion of the Barnett Shale formation has been designated as the Newark, East Field by the Texas Railroad Commission. History of the Barnett Shale John W. Barnett settled in the San Saba County during late 19th century and named a local stream the Barnett Stream. In the early 20th century during a mapping exercise, geologists noted a thick black organic-rich shale in an outcrop close to the stream and named it the Barnett Shale.The Barnett Shale has acted as an important source and sealing cap rock for conventional oil and gas reservoirs in the area. It was thought that only a few of the thicker sections close to Fort Worth would support economic drilling. It was not until the 1980's with new advances in horizontal drilling and well fracturing technology used by Mitchell Energy, a small independent, that the potential of the Barnett Shale was realized. Significant drilling activity did not begin until gas prices increased in the late 1990's. 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. http://www.rrc.state.tx.us/barnettshale/

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Active Permits &Producing Wells Texas Counties with Producing Wells Texas Counties with Drilling Permits

http://www.rrc.state.tx.us/barnettshale/countyproducing.php

http://www.beg.utexas.edu/presentations/presentations/2009_Presentations/Tinker%20IOGCC%20Unconventional%20Gas%2009.pdf

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DOE. Modern Shale Gas Development in the United States: Primer April 2009 http://www.fossil.energy.gov/programs/oilgas/publications/naturalgas_general/Shale_Gas_Primer_2009.pdf The Barnett Shale The Barnett Shale is located in the Fort Worth Basin of north-central Texas. It is a Mississippian age shale occurring at a depth of 6,500 feet to 8,500 feet (Exhibit 11 and Exhibit 13131) and is bounded by limestone formations above (Marble Falls Limestone) and below (Chappel Limestone) (Exhibit 12).

With over 10,000 wells drilled to date, the Barnett Shale is the most prominent shale gas play in the U.S.132. It has been a showcase for modern tight-reservoir development typical of gas shales in the U.S.133. The development of the Barnett Shale has been a proving ground for combining the technologies of horizontal drilling and large-volume hydraulic fracture treatments. Drilling operations continue expanding the play boundaries outward; at the same time, operations have turned towards infill drilling to increase the amount of gas recovered134. Horizontal well completions in the Barnett are occurring at well spacing ranging from 60 to 160 acres per well (Exhibit 11).

The Barnett Shale covers an area of about 5,000 square miles with an approximate thickness ranging from 100 feet (ft) to more than 600 ft (Exhibit 11). The original gas-in-place estimate for the Barnett Shale is 327 tcf with estimated technically recoverable resources of 44 tcf (Exhibit 11). The gas content is the highest among the major shale plays, ranging from 300 standard cubic feet per ton (scf/ton) to 350 scf/ton of rock (Exhibit 11)

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http://www.barnettshalenews.com/documents/2009TAEPExpo/Recent%20Developments%20in%20the%20Barnett%20Shale.pdf

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http://www.barnettshalenews.com/documents/RigData%20Barnett%20Shale%20Rig%20Count%20Booklet%20Barnett%20Shale%20EXPO%203-11-2009.pdf

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Newark, East (Barnett Shale) Field Discovery Date – 10-15-1981 http://www.rrc.state.tx.us/data/fielddata/barnettshale.pdf

• As of September 8, 2009 there are a total of gas wells 12,135 entered on RRC records. In addition, there are 3,521 permitted locations (represents pending oil or gas wells, where either the operator has not yet filed completion paperwork with the Commission, or the completed well has not yet been set up with a Commission identification number).

• In 2008 there were a total of 117 injection wells, 3surface waste disposal facilities and 24 commercialsaltwater disposal wells on our records, and 23disposal permits were issued.

• This field produces in nineteen (21) counties:Archer, Bosque, Clay, Comanche, Cooke, Coryell,Dallas, Denton, Eastland, Ellis, Erath, Hill, Hood,Jack, Johnson, Montague, Palo Pinto, Parker,Somervell, Tarrant, and Wise. In addition,drilling permits have been issued for wells in Hamilton , Shackelford and Stephens Counties.

• Gas Well Gas Production – January 2004 through December 2004 = 380 Bcf January 2005 through December 2005 = 503 Bcf January 2006 through December 2006 = 712 Bcf January 2007 through December 2007 = 1,082 Bcf January 2008 through December 2008 = 1,563 Bcf January 2009 through June 2009 = 809 Bcf

• For 2008 production accounts for 23% of Texas Production • Drilling Permits Issued –

January 2004 through December 2004 = 1,112 January 2005 through December 2005 = 1,629 January 2006 through December 2006 = 2,503 January 2007 through December 2007 = 3,643 January 2008 through December 2008 = 4,145 January 2009 through August 2009 = 1,162

• There are a total of 234 operators in the Newark, East (Barnett Shale) Field. •

Barnett Shale Rig Report November 20, 2009 http://www.star-telegram.com/business/story/1779714.html Tarrant County Carrizo Oil & Gas, Houston: horizontal off Pecan Road, north of I-20/Farm Road 157. Quicksilver Resources, Fort Worth: horizontal off Village Creek Road, north of Loop 820/I-20. Quicksilver Resources: horizontal off Green Oaks Blvd., north of I-20/Loop 820. Williams Production Gulf Coast, Tulsa: horizontal off Harmon Road, north of U.S. 287/Loop 820. XTO Energy, Fort Worth: horizontal off Grand Peninsula Drive, south of U.S. 287. XTO Energy: horizontal off U.S. 287/Texas 360. Clay County Harding Exploration, Wichita Falls: vertical off Farm Road 2393. Denton County Burlington Resources Oil & Gas Co., Midland: horizontal off Barnett Road, north of Farm Road 1173. Carrizo Oil & Gas: horizontal off Orchard Hill Road. Quicksilver Resources: horizontal off Harmoson Road, north of Texas 114/Farm Road 156. Hood County Quicksilver Resources: horizontal off Farm Road 2174, south of Morgan St./U.S. 377. Jack County Best Petroleum Exploration, Wichita Falls: vertical off Berwick Road, south of Farm Road 1192. Johnson County Chesapeake Operating, Oklahoma City: horizontal off Spring Valley. Chesapeake Operating: horizontal off Mockingbird Lane, south of Texas 174/Farm Road 731. Chesapeake Operating: horizontal off Texas 171, southeast of U.S. 377/Texas 171. XTO Energy: horizontal off County Road 607, east of I-35W/U.S. 67. Parker County XTO Energy: horizontal off Old Airport Road, east of I-20W/Farm Road 2552 (Clear Lake Road). Wise County Devon Energy Production Co., Oklahoma City: horizontal off County Road 4421, north of U.S. 287. Devon Energy: horizontal off Wilson St., west of Texas 114 (West Rock Island Avenue). Devon Energy: horizontal off County Road 1270, west of U.S. 287/Farm Road 1810. Lakota Energy, Paradise: horizontal off West County Line Road, east of Texas 114. Information provided by RigData; compiled by Adrienne Jones.

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WEBSITES GENERAL BLM New Mexico, Texas, Oklahoma, Kansas http://www.blm.gov/nm/st/en.html Bureau of Economic Geology http://www.beg.utexas.edu/ Dallas Geological Society http://www.dgs.org/ East Texas Geological Society http://www.easttexasgeo.com/publications.asp East Texas SPE http://easttexas.spe.org/ Gulf Coast Association of Geological Societies http://www.gcags.org/ Kilgore Herald http://www.kilgorenewsherald.com Louisiana Geological Survey http://www.lgs.lsu.edu/ Railroad Commission of Texas http://www.rrc.state.tx.us/ Region 6 EPA http://www.epa.gov/region6/ Texas Independent Producers and Royalty Owners Association http://www.tipro.org/ The Texas Commission on Environmental Quality. http://163.234.20.106/index.html BARNETT SPECIFIC Barnett Shale Energy Education Council (BSEEC) http://www.bseec.org/ Powell Newsletter http://www.barnettshalenews.com/ PTTC Texas Region http://www.beg.utexas.edu/pttc/BSR/BSRpublications.htm CITY GAS WELL INFORMATION LINKS Arlington: http://www.ci.arlington.tx.us/planning/gas_drilling.html Benbrook: http://www.cityofbenbrook.com/controls/eventview.aspx?MODE=SINGLE&ID=99 Burleson: http://www.burlesontx.com/City%20Depts/Public%20Works/Gas%20Well%20Drilling.html Fort Worth: http://www.fortworthgov.org/gaswells Grand Prairie: http://www.gptx.org/EnvironmentalServices/GasDrilling/GasDrillingIndex.aspx NEWSPAPERS Dallas Morning News http://www.dallasnews.com/ Dallas Business Journal http://dallas.bizjournals.com/dallas/ Fort Worth Star Telegram http://www.star-telegram.com/ Kilgore Herald http://www.kilgorenewsherald.com Houston Chronicle http://www.chron.com/ Houston Business Journal http://houston.bizjournals.com/houston/ Nacogdoches Daily Sentinel http://www.dailysentinel.com OPERATORS Burlington Resources/ConocoPhillips http://www.conocophillips.com/EN/Pages/index.aspx Carrizo Oil & Gas http://www.carrizo.cc/ Chesapeake Operating, Inc. http://www.chk.com/Pages/default.aspx Devon Energy Production http://www.devonenergy.com Encana Oil & Gas http://www.encana.com/ EOG Resources, Inc. http://www.eogresources.com/home/index.html Quicksilver Resources Inc. http://www.qrinc.com/ Range Production Company http://www.rangeresources.com/ Williams Production http://www.williams.com/ XTO Energy Inc http://www.xtoenergy.com/en/home.html

OPERATORS For more detailed information look at Don Lyle’s Operator Profiles in the Hart’s Barnett Shale Playbook available in December 2009 Carrizo Oil & Gas Inc. Already an aggressive company, Carrizo claimed a foothold in the Barnett and used that as a stairway to other shale plays around the county. In early 2009, Carrizo had 75,000 net acres in the Barnett play, 21,000 in the core counties, where finding and development (F&D) costs average around $1.25/Mcfge; 24,000 in the tier one counties with a $178/Mcfge F&D cost and 30,000 net acres in tier two counties with F&D costs around $2.27/Mcfge. Leveraging its property position with a heavy reliance on 3-D seismic to choose drilling sites and avoid faults that could short-circuit production, Carrizo has identified 812 potential locations for both exploratory and development drilling with horizontal wells, based on 60-acre spacing. It plans to keep three rigs running in 2009, all on the company's net 18,000 acres in Tarrant County in the Barnett core. Those rigs should raise production by 110 MMcfge/d by the end of the year, the company says. Looking at Tarrant County economics, Carrizo saysit bought 45 acres of land at $8,000 an acre for a net $400,000. Acquisition of 3-D seismic cost $30,000 per well on top of the $3.3-million well cost. Those properties gave the company a 39% internal rate of return at a gas price of $7/Mcf and an 18% return with gas at $5. Although gas prices were lower as this article was produced, Carrizo, like many other companies, hedged production to lock in higher prices. During 2008, Carrizo cut the number of days its drilling rigs remain on station from 28 to 29 days in earlier wells to 23 to 24

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days in more current wells. The company attributed its improved drilling time to Helmerich & Payne's Flex rigs and Schlumberger's rotary steerable drilling tools. At the same time, well costs dropped to $2.8 million to $3.5 million in new wells from $3 million to $3.5 million in earlier wells. Chesapeake Energy Corp. The Barnett dominates Chesapeake's shale operations. It is the second-largest producer in the play and the most prolific driller and largest leaseholder in the core and Tier 1 counties--Tarrant, Johnson and western Dallas counties. Chesapeake finished the second quarter of 2009 with net Barnett production of 650 MMcfge/d, up approximately 40% from the same point in 2008 putting the play at the top of its unconventional gas resource heap. Gross production at the end of the second quarter of 2009 was 950 MMcfge/d, the company said. Since gas prices dropped in the second half of 2008, Chesapeake lowered its rig count. It planned to operate an average of 17 rigs in the Barnett play in the second half of 2009 to drill 145 new wells and average 18 rigs in 2010 to drill another 310 wells. Chesapeake controls 310,000 net acres in the Barnett play, and 280,000 net acres are in the core and Tier 1 areas of the play. At the end of the second quarter of 2009, Chesapeake estimated 3.2 Tcfge of Barnett proved reserves and 4.7 Tcfge of risked unproved reserves, assuming continued development on 60-acre spacing. It also had 2, 750 risked net undrilled wells with an estimated average of 2.65 Bcfge per well. In August 2009, the average company well cost $2.6 million. The company paid a 25% royalty and it's finding and development cost was $1.31/Mcfe. At a New York Mercantile Exchange price of $7/MMBtu, Chesapeake received a 36% rate of return on its average Barnett well. The company's Dallas-Fort Worth Airport project demonstrates the scale of operations the large company can undertake. After acquiring rights to work the Barnett shale play on airport properties in late 2006, it conducted the only 3-D seismic survey ever conducted on an airport in the United States. Crews had to work at night under strict US Homeland Security and local airport security restrictions to avoid disrupting operations at one of the busiest airports in the United States. Using results from the 3-D shoot, it drilled 112 successful wells on the property during 2007 and produced 60 MMcfge/d from the property with peak production around 80 MMcfge/d. ConocoPhillips Inc. ConocoPhillips’ acquisition of Burlington Resources Inc. made it an instant top 10 player in the Barnett in 2006. ConocoPhillips doesn't release much information about specific plays in its worldwide inventory, but it's clear the major company considers the Barnett, along with other unconventional gas plays, an asset worth developing. When ConocoPhillips bought its way into the play, Burlington Resources already had worked the play for several years. It has some 28,000 net acres in the core area and another 22,000 net acres southwest of the Barnett core in Palo Pinto County. It planned to expand its position there. It also held 70,000 acres in Parker, Hook and Johnson counties. In a 2009 presentation, ConocoPhillips executives said the company still held 110,000 net acres of land in the Barnett and produced approximately 100 MMcf/d of gas at the end of 2008. Following the Burlington Resources acquisition, ConocoPhillips became the sixth largest producer in the Barnett play with 13.2 Bcfge in production between January and May of 2007. In its 2004 annual report, Burlington noted the company focused operations in the Barnett in Denton and Wise counties in the core area. At that time, it had as many as five drilling rigs working and participated in 93 wells in the shale, including 11 horizontal wells. It invested $83 million in the play that year and finished with 33 MMcf of gas, 4,200 b/d of natural gas liquids and 1,000 bbl of oil a day. ConocoPhillips also considers the play important. In 2006, it continued to develop its acreage in Denton, Wise, Johnson, Hood, Parker and Palo Pinto counties. At that time, it had added holdings, raising its acreage position to 127,000 net acres in the basin. Production increased to 42 MMcf of gas, more than 3,000 bbl of natural gas liquids and 1,000 bbl of oil a day, as it concentrated on the more gas-prone areas of the Barnett. Devon EnergyCorp. Devon established a position in the Barnett Shale in 2002 through the company’s acquisition of Mitchell Energy and Development Corp. Since then, the company has led technological advancements that have allowed the play to grow into the nation’s most prolific natural gas field. The primary catalyst for growth in reserves and production has been a development program using horizontal drilling coupled with fracture stimulation technology. While horizontal drilling minimizes the surface disturbance of the company’s operations in the area, fracture stimulation enhances permeability in the shale. Devon is the largest natural gas producer in the Barnett Shale, extracting more than 1 Bcf of natural gas each day from the play. Its position in the core area of Barnett allowed it to drill most of the top-producing wells in the play. Today, Devon has a position in 10 north Texas counties. During the second quarter of 2009, Devon’s Barnett production averaged 1.2 Bcfge/d , a 12% increase over the second quarter of 2008 and essentially flat with the first quarter of 2009. Stronger than expected performance from the company’s base production in the Barnett Shale helped to drive company-wide reported production to a record high. Devon planned to drill nearly 230 Barnett wells in 2009.

The Barnett shale is an important asset in Devon’s portfolio. According to the company's 2008 annual report, it provided 37% of Devon's total proved reserves and 28% of its oil and gas production. Devon is the largest lease holder in the play with about 700,000 net acres. It produced about a fourth of all the gas from the Barnett with 90% of its leases in the most productive areas of the field. During 2008, the company drilled a record 659 Barnett wells, bringing its Barnett producing well count to more than 3,800. It had drilled 539 wells in 2007 and 383 in 2006. Net production climbed to nearly 1.2 Bcfge/d by the end of 2008 even though the company reduced its drilling budget to match lower gas prices. At the end of 2008, Devon had some 7,500 undrilled locations and had produced more than 1.5 Tcfge from the Barnett. By the end of the second quarter of 2009, Devon reported a record daily production of 719,000 barrels of oil equivalent per day from all company sources, up 12% from the same quarter a year earlier. At the time, it said “U.S. onshore natural gas production, led by the Barnett Shale Feld in Texas, demonstrated significant growth.” Devon drilled 659 Barnett wells in 2008, 559 of which were operated. For 2009, Devon planned to drill about 230 wells, 208 operated. As prices remain tight, it is selectively deferring completions for maximum economic benefit and will continue to develop its more viable areas with 1,000-ft and 500-ft offset infill programs.

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EOG Resources Inc. EOG Resources Inc. made a name for itself as one of the early entrants to the Barnett Shale play outside the core area. It focused its early gas recovery techniques on Johnson County, Texas, and helped make that county the most prolific producer outside the Barnett core. In addition to Johnson County properties, EOG holds gas-prone leases in Jack, Wise, Palo Pinto, Parker, Hood, Erath, Bosque, Hill, McClennan, Stephens and Somervell counties. Oil prone Barnett leases are in Archer, Clay, Montague, Cook, Jack, Wise, Stephens and Palo Pinto counties north and west of the gas play The company ended 2007 with production of 375 MMcfge/d from the Barnett and it raised that rate during 2008 with more than 400 new wells. It planned to produce 400 MMcfge/d from the gas-prone area by November 2012, slightly more than at the end of 2009, and approximately 310 MMcfge/d from the combo play by the same time, up from about 70 MMcfge/d at the end of 2009, according to a late September, 2009, presentation to investors. EOG estimated potential reserves from the the gas portion of the Barnett play between 5 Tcfge and 7.2 Tcfge, but it had booked only 1.4 Tcfge by mid-2009. The combo play totaled 194,000 acres in Montague and Cooke counties and another 144,000 acres in Clay and Archer counties, in addition to the 650,000 acres in the gas play. EOG planned between 100 and 120 Barnett combo play wells in 2009, and counted 50 MMboe of proved reserves and a 50% after-tax rate of return at September, 2009, oil and liquids prices.

EOG was one of the earliest users of horizontal drilling to enhance well production. It's horizontal wells in Johnson County came in at higher rates than any other producer in the area, a result of more efficient drilling and better well results. It closed 2007 with production of 375 MMcfge/d from the Barnett. At the end of that year, the company stepped up its use of automated rigs and more efficient frac jobs to lower well costs.

EOG's wells and 60 wells by other operators have proved up a Barnett oil fairway 40 miles east to west and 20 miles north to south. EOG's success in the combo play also displayed the company's technologic expertise. Its per-well net average reserve potential changed from 75,000 bbl of oil, 34,000 bbl of natural gas liquids and 260 MMcf of gas, for a total of 152,000 boe in March, 2008, to 45,000 bbl of oil, 75,000 bbl of liquids and 540 MMcf of gas, for a total of 210,000 boe in February, 2009. Quicksilver Resources Inc. While some other companies curtailed Barnett Shale operations as gas prices dropped in the last half of 2008, Quicksilver Resources Inc. continued strong growth in the company's core production area. The company has leased approximately 275,000 net acres in this world-class basin, including more than 173,000 net acres within the company’s defined core fairway. With less than 40% of the acreage in the core fairway currently developed, the company expects to achieve continued growth in production and reserves in Texas, where more than 5 Tcf of total potential (gas equivalent) resources have been identified. According to a September, 2009, presentation, Quicksilver increased Barnett production 54% between the end of the second quarter of 2008 and the same date in 2009. It claimed 192,000 net acres of Barnett holdings and a 10-year project inventory. In June, 2009, Quicksilver brought in a partner, Italian energy giant Eni. Eni acquired a 27.5% share in Quicksilver's Alliance leasehold in the Barnett Shale for $280 million. The Alliance leasehold covers 13,000 acres, and the companies agreed to examine the 270,000 acres of properties surrounding that leasehold. If they find candidates with potential, they will jointly acquire, develop and exploit unconventional gas in that area on a 72.5%-27.5% basis. Eni said the arrangement added 23 million boe of proven reserves and 17 million boe of probable and possible reserves to its corporate stockpile. Quicksilver produced 263 MMcfge/d and had unbooked resources of more than 3 Tcfge from all of its Barnett properties at the halfway point of 2009. The company continued development work its 175,000 net acres in its core fairway. In the second quarter of 2009, it drilled 29 (22.9 net) wells and connected 27 (25.2 net) wells to sales and had five rigs working in the basin, including four rigs in the Lake Arlington andAlliance areas in Tarrant and Denton counties. Range Resources Corp. Range Resources Corp. increased production from its Barnett properties even as it cut the number of rigs working the play to two. Overall, Range trimmed working rigs to 14 at the end of the second quarter of 2009 from 30 at the same time a year earlier. By the end of the second quarter, Range produced a net 120 MMcfge/d from its Barnett properties and had recently tested seven Denton County wells that produced at a combined rate of 17 MMcfge/d. It also completed two northeast Parker County wells with one reaching an initial production of 7.6 MMcfge./d. The Barnett offered 1.8 Tcfge in resource potential with more than 1,000 additional drilling locations in the core area. The finding and development cost was $1.14/Mcfge, and it provided the company a 23% return at a New York Mercantile Exchange gas price of $4/MMBtu.

In July 2008, the company held 109,000 net acres in the Barnett with 90 MMcfge/d of production. Some 42,000 net acres of that total were in Tarrant, Johnson, Denton, east Parker, east Hood, northwest Ellis and southwest Dallas counties. The Williams Companies Inc. At the end of 2008, the company produced 88 MMcfge/d from its Barnett Shale and Arkoma Basin properties combined. By the end of March, 2009, it produced 110 MMcfge/d gross, 81.5 MMcfge/d net, from the Barnett alone, according to an analyst presentation. The Barnett Shale, although much smaller than the company's Colorado properties, returned the highest growth. Currently the company is high-grading its Barnett properties as it works some 250 drilling sites, based on 250-acre spacing. In May, it held 35,000 net acres in the Barnett and 90% of that acreage was in the core and Tier 1 areas. At the end of 2008, it claimed 190 Bcfge of proved reserves in the Barnett and 430 Bcfge of proved, probable and possible reserves. In August, 2008, it acquired some 10,000 acres of Barnett properties for $147 million from a group of companies that included Aspect Abundant Shale LP. The properties in that purchase lie in Tarrant, Hood and Johnson counties and include 41 wells producing a net 9 MMcfge/d. That's a significant addition to the 34,000 Barnett acres already held by the company. Even if the acquisition doesn't go through, Williams will hold 277 Bcfge in proved, probable and possible reserves on its existing properties. If the deal goes through, it will add 175 Bcfge in proved, probable and possible reserves to that number. Williams planned to contract two more rigs to work the new properties. XTO Energy Inc.

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XTO Energy Inc. is a Barnett shale powerhouse, producing some 631 MMcfge/d net from the Barnett Shale, and it maintained a high growth level in the Barnett and its other major shale plays. By the end of the second quarter of 2009, production climbed to 2.9 Bcfge/d, up from 2.2 Bcfge/d a year earlier, and the Barnett accounted for 22% of the total, or 621 MMcfge/d. Among its best core-area wells in the second quarter of 2009 were the Gafford C 1H with an initial potential of 5.5 MMcfge/d, the Arlington Surber B 2H, at 5.1 MMcfge/d and the Gafford D 1H at 4.6 MMcfge/d. At the end of the period, the company held 277,000 net acres in the Barnett Shale and had 10 drilling rigs running. The rig total had been as high as 25 in 2007, according to a company report. One reason for the company's phenomenal growth showed in its 2008 strategic acquisition program when it spent some $11 billion to get 1.7 million acres of leases in the nation's top five shale plays.

In July, the company signed a definitive agreement to acquire 12,900 net acres of Barnett shale properties adjacent to its existing holdings for approximately $800 million. It did not identify the seller. Those properties hold estimated proved reserves of more than 300 Bcfge. About 25% of that constitutes proved, developed reserves. The acquisition also will increase the company's production from the Barnett by 35 MMcfge/d. The company also is installed midstream infrastructure to accommodate planned growth. XTO currently has some 2,000 wells.

ONLINE RESOURCES Airhart, Marc. Igniting a Hunt for Unconventional Natural Gas Resources. http://geology.com/research/barnett-shale-gas.shtml

Assessment of Undiscovered Oil and Gas Resources of the Bend Arch-Fort Worth Basin Province of North-Central Texas and Southwestern Oklahoma, 2003. http://pubs.usgs.gov/fs/2004/3022/fs-2004-3022.pdf An Enduring Resource: A Perspective on the Past, Present, and Future Contribution of the Barnett Shale to the Economy of Fort Worth and the Surrounding Area March 2009. http://www.barnettshaleexpo.com/docs/2009_eco_report.pdf Ball, Mahlon, M.; Perry, William J. Jr. Bend Arch-Fort Worth Basin, Province 5045 (Province 45) http://certmapper.cr.usgs.gov/data/noga95/prov45/text/prov45.pdf The Barnett Shale Formation of North Texas and Oklahoma. http://expertsreviewof.com/ Bounty from Below: The Impact of Developing Natural Gas Resources Associated with the Barnett Shale on Business Activity in Fort Worth and the Surrounding 14-County Area. May 2007. http://www.barnettshaleexpo.com/docs/Barnett_Shale_Impact_Study.pdf Brackett, Will. Developing the Marcellus Shale: What We’ve Experienced in the Barnett Shale. http://www.barnettshalenews.com/documents/Marcellus%20-%20What%20We've%20Learned%20in%20the%20Barnett.pdf Fowler, Tom. Stubborn In His Vision Mitchell's Persistence Laid Groundwork For Shale Gas Surge. Houston Chronicle, November 14, 2009. http://www.chron.com/disp/story.mpl/business/energy/6720223.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+houstonchronicle%2Fenergy+%28HoustonChronicle.com Galusky, L. Peter. The Energy Fort Worth Basin/Barnett Shale Natural Gas Play: An Assessment of Present and Projected Fresh Water Use. April 3, 2007. http://www.texerra.com/Barnetthydro.pdf Geologic Controls on the Growth of Petroleum Reserves. U.S. Geological Survey Bulletin 2172-I. http://pubs.usgs.gov/bul/b2172-i/pdf/B2172-I.pdf Givens, Natalie; Zhao, Hank. The Barnett Shale: Not So Simple After All. https://www.republicenergy.com/Articles/Barnett_Shale/Barnett.aspx Hill, Ronald J.; Jarvie, Daniel M.; Zumberge, John, Mitchell, Henry; Pollastro, Richard M. Oil and gas geochemistry and petroleum systems of the Fort Worth Basin. http://www.wwgeochem.com/resources/Hill$2C+Jarvie+et+al+oil+and+gas+geochemistry+Ft+Worth+Basin.pdf Jarvie Presentation http://energy.ihs.com/NR/rdonlyres/D341AE18-4532-4B6E-AAF8-842FDD71A138/0/f32sjarviefinalworldwideshaleresourceplays.pdf http://www.wwgeochem.com/ Jarvie, Daniel M.; Hill, Roanld J; Ruble, Tim E.; Pollastro, Richard M. Unconventional shale-gas systems: The Mississippian Barnett Shale of north-central Texas as one model for thermogenic shale-gas assessment. http://www.wwgeochem.com/resources/Jarvie+et+al.+2007+AAPG+Bulletin+-+Unconventional+shale-gas+systems.pdf Kinley, Travis J.; Cook, Lance W.; Breyer, John a.; Jarvie, Daniel M.; Busbey, Arthur B. Hydrocarbon potential of the Barnett Shale (Mississippian), Delaware Basin, west Texas and southeastern New Mexico. http://www.wwgeochem.com/resources/Kinley+et+al.+Aug+2008+Delaware+Basin+paper.pdf

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Montgomery, Scott L.; Jarvie, Daniel M.; Bowker, Kent A.; Pollastro, Richard M. Mississippian Barnett Shale, Fort Worth basin, north-central Texas: Gas-shale play with multi–trillion cubic foot potential. http://www.wwgeochem.com/resources/Montgomery$2C+Jarvie+et+al+AAPG+E$26P+paper+2005.pdf Natural Gas Pipelines in the Southwest Region. http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/southeast.html Pollastro, Richard M.; Jarvie, Daniel M.; Hill, Ronald J.; Adams, Craig W. Geologic framework of the Mississippian Barnett Shale, Barnett-Paleozoic total petroleum system, Bend arch–FortWorth Basin, Texas. http://www.wwgeochem.com/resources/Pollastro$2C+Jarvie+et+al.+2007+AAPG+Geologic+framework+of+the+Miss.+Barnett+Shale.pdf Powell, Michael E. Recent Developments in the Barnett Shale http://www.barnettshalenews.com/documents/2009TAEPExpo/Recent%20Developments%20in%20the%20Barnett%20Shale.pdf Ruppel, Stephen C. Integrated Synthesis Of The Permian Basin: Data And Models For Recovering Existing And Undiscovered Oil Resources From The Largest Oil-Bearing Basin In The U.S. Final Technical Report 11/01/04 – 10/30/08 http://www.netl.doe.gov/technologies/oil-gas/publications/EPreports/NT15509_FinalReport.pdf Texas Reservoir Chased Under Urban Setting Barnett Shale a Stimulating Play. AAPG Explorer, February 2006 http://www.aapg.org/explorer/2006/02feb/barnett_shale.cfm Texas Railroad Commission. Barnett Shale Information. http://www.rrc.state.tx.us/barnettshale/index.php Tinker, Scott. The Current and Future Role of Unconventional Gas in U.S. Energy. http://www.beg.utexas.edu/presentations/presentations/2009_Presentations/Tinker%20IOGCC%20Unconventional%20Gas%2009.pdf

Tudor Pickering. The Barnett Shale Visitors Guide to the Hottest Gas Play in the US. October 2005 http://www.tudorpickering.com/pdfs/TheBarnettShaleReport.pdf

OGI BARNETT FULL TEXT ARTICLES Regional Spotlight: Barnett Shale, Shaun Finnie, David Cecil and Adrian Goodisman , Scotia Waterous, Feb 1, 2009 The Barnett shale trend in the Fort Worth Basin of north-central Texas represents one of most prolific onshore gas fields in the U.S. The play covers approximately 5,000 square miles, primarily in four Texas counties—Wise, Denton, Tarrant and Johnson. Production from the Barnett has significantly increased in the past 18 months from 2.3 billion cubic feet equivalent per day from more than 6,500 wells to 4 billion per day from 10,400 wells, an increase of nearly 75% in production and almost 40% in the number of wells. The shale has a cumulative production of more than 4.6 trillion cubic feet equivalent, with approximately 3.9 trillion having been produced just since 2000. Production and reserve increases have occurred as a result of new developments in hydraulic fracturing, horizontal-drilling technology and the application of 3-D seismic. The productive area has rapidly grown in the past several years, expanding into many urban areas, including the city of Fort Worth, and away from the core productive area of Newark East Field in Tarrant County. Attractions, challenges. The attraction to the area includes the large estimated potential of some 30 trillion cubic feet equivalent of gas, extensive infrastructure and improvements in drilling and completion technology. Although the Barnett underlies approximately 17 counties, only five have been extensively developed, offering opportunities for extended growth. Each county may have potential for further development. Challenges include land access and urban development, environmental issues and gas-price sensitivity. Developing the shale within urban areas has created a unique set of land-access issues. Royalty rates and bonus payments have increased in the basin during the past few years. Geology. The Barnett is Mississippian in age and occurs at between 6,500 and 8,500 feet, with thicknesses ranging from 50 feet to as much as 1,000 feet in the northeast. The interval is lithologically variable and consists of siliceous shale (the primary reservoir), limestone and minor dolomite. Permeability is low—generally less than 0.1 millidarcy—with average porosity of 5% to 6%. The variability in permeability and porosity across the play is critical to understanding well performance. The majority of the production has been from the northern portion of the basin, where the shale is more than 300 feet thick, has a total organic content (TOC) of more than 3% and is thermally mature. The northern region of the play is also an area in which the shale is encased in dense limestone—Marble Falls stratigraphically above and the Viola below—that helps to contain induced fractures through hydraulic-fracture applications. However, as the play has moved away from the core area, operators have designed wells and completion techniques to avoid communication with water-bearing zones in the absence of Viola. Operations, technology. Horizontal wells, some drilled from multi-well pads, currently dominate the trend and allow for better recoveries and help to avoid surface obstacles in urban areas. The horizontal laterals are from 2,000 to 3,000 feet and are coupled with multi-stage fracs. Horizontal wells designed with multiple, relatively small, hydraulic-fracture treatments have been effective in avoiding water-bearing zones in the absence of Viola limestone in counties south of the core area.

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3-D seismic has become useful to better understand both the reservoir and local structure. Through the use of advanced drilling and completions technology, extensive existing infrastructure and excellent market access, the Barnett will continue to be a successful long-life, producing region. Top producers. Devon Energy Corp., through its acquisition of Mitchell Energy & Development Corp. in 2001, is the top producer in the area, with 28.2% of total gross operated production. Quicksilver Resources Inc. became a large producer through its recent acquisitions for $1.31 billion, and now controls 4.4% of gross operated production. Transaction activity. Between 2003 and 2006, there was a scramble to acquire unleased acreage in the Barnett. Since then, producers, such as Devon, Quicksilver, XTO Energy Inc., Chesapeake Energy Corp. and Range Resources Corp., have been active in acquiring smaller private companies, thus consolidating their positions in the region. The majority of recent transactions have been made by existing producers, since land access is such a large issue for a new entrant. Transaction metrics in the region are highly sensitive to location within the play, with the most geographically aggressive metrics paid in Tarrant and Denton counties. Barnett Wonderland Peggy Williams, April 29, 2005 The Barnett Shale play is booming, exploding with activity. "It's unbelievable, from where we were five years ago to what's going on now," says Kent A. Bowker, an independent producer and consultant based in The Woodlands, Texas. Some 3,700 wells are making 1.1 billion cubic feet of gas equivalent (Bcfe) per day from what is now the largest gas field in Texas, and in late February more than 80 rigs were at work in the astonishing play. Recently, the U.S. Geological Survey (USGS) estimated that the Barnett Shale contained total mean undiscovered resources of 26.2 trillion cubic feet (Tcf) of gas, along with 1 billion barrels of gas liquids. Already, the North Texas play has produced 1.2 Tcf. "There's one man basically responsible for the Barnett play-George P. Mitchell. He worked the play for 17 years before he started to make money," Bowker says of the founder of The Woodlands, Texas-based Mitchell Energy & Development Corp., which sold its assets to Devon Energy Corp. in 2002. (For more on the Barnett play, see "The Barnett Shale," Oil and Gas Investor, March 2002.) "Mr. Mitchell knew there was something there, and he overcame many obstacles." Larry Nichols, Devon chairman and chief executive, told fellow producers at a program in Houston recently that he had looked at buying Mitchell Energy in 1999 while the Barnett program was somewhat nascent, and "we turned our noses up because we didn't think it would work." About two years later, Nichols made an offer and an apology to George Mitchell. Devon will spend $360 million in the Barnett this year. Not the least of producers' obstacles in the Barnett Shale was its contrary nature. Truly, it is an Alice-in-Wonderland play. Bowker says, "The whole world is upside down in the Barnett Shale. Nothing is as it should be. We look for shale, not conventional reservoir rocks; we want undisturbed sediments without any faults or folds; and we drill downdip of the oil leg so we can find gas." The Barnett is the poster child for unconventional accumulations. A premium source rock, it has generated and captured its own hydrocarbons. Although the shale was deposited across much of the Fort Worth Basin, it is far from uniform. It exhibits widely varying lithologies, and it has endured a long and complicated history of thermal events. Parts of the play produce dry gas, parts have gas and condensate, and parts yield green oil. Too, shale thicknesses vary across the basin from more than 1,000 feet to less than 50 feet. Until quite recently, commercial production was confined to a core area covering some 400 square miles in eastern Wise, western Denton and northern Tarrant counties. Here, the Mississippian-age Barnett is found at depths between 6,500 and 8,500 feet. It reaches thicknesses of more than 400 feet and is amenable to exploitation via vertical wells. Competent carbonate beds occur above and below the Barnett interval and are able to confine hydraulic stimulation treatments. Mitchell Energy spent years perfecting vertical-well completions in this area. The Barnett won't produce unless it's stimulated, and fracs in the past in vertical wells outside the core were spectacularly unsuccessful. Now, horizontal drilling-and specialized horizontal stimulation treatments-have unlocked the potential of the noncore area. That's why the industry is so excited about the play. Vertical wells in the core area recover an average of about 1.25 Bcfe each; in certain noncore areas, horizontal wells appear capable of making an average of 2.5 Bcfe each. And there's a whole lot of territory that looks prospective: the USGS interprets the Barnett Shale as a giant, continuous-type gas accumulation that extends over some 7,000 square miles. Certainly, some limits do exist. On the northeast side of the basin, the shale terminates against (or possibly dives beneath) the Muenster Arch. Here, in the basin's deepest part, the shale carries high concentrations of carbonates that inhibit its productivity. On the north and west sides of the basin, the Barnett is in the oil window, and the shale's ultra-low permeabilities make the fluid phase uneconomic at present. And, to the east, the Ouachita Thrust-Fold Belt provides another physical barrier. That leaves a huge swath of potential in the countryside south and west of the traditional core. "Eventually, the Barnett will get too shallow and too thin to the south and west of the core to support economic production, but we don't know yet where those limits are," says Bowker. "People have spent a bunch of money on leases to find out." Horizontal breakthrough Devon Energy Corp., by far the largest operator in the Barnett, currently produces 560 million net cubic feet of gas per day from its interests in some 1,900 shale wells. More than 90% of its production comes from the core area, but that is rapidly changing. The company's focus has turned to horizontal drilling. It began to push horizontal drilling forward both inside and outside the core area after its acquisition of Mitchell Energy in early 2002. "Some 23% of our total Barnett production is now coming from our 135 horizontal producing wells, and we produce about 40 million per day from outside the core area," says Brad Foster, Devon vice president and general manager, central division. "The horizontal wells have helped us overcome some of the geological complexities of the play." Last year, the company drilled 88 horizontal Barnett wells, bringing to 150 the number it has completed. This year, it plans to drill 156 horizontals. One hundred of those wells will lie outside the core area, a testament to Devon's success with horizontal technology as well as its extensive acreage position. It has rights to some 415,000 acres of leases outside the core, including 93,000 acres in Johnson County and 175,000 acres in Parker County. The company is running 14 rigs at present: eight are drilling horizontal wells outside the core; within the core area, three are drilling horizontal wells and three are at work on vertical wells. Devon's 2005 program is focusing on Johnson and Parker counties, as well as western Wise County. Additionally, it will drill some areas adjacent to the eastern and northern core. This year, as it transitions to increased activity outside the core, Devon's goal is to hold its production flat. Still, the company is not yet finished in the core area. After the Mitchell purchase, Devon embarked on an aggressive program to drill up the vertical-well inventory. Although the core is now mature, Devon still has more than 200 locations on its 120,000-acre position there. This year, it plans to start a downspacing pilot, and it continues to investigate various fracturing techniques. "We're looking at refracing core wells with foam fracs," says Foster. "And we're looking at ways to exploit the Upper Barnett interval." The company has acquired seismic over a vast majority of its acreage, both in and outside

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of the core area, and has launched an intensive reservoir characterization effort. During 2005, it plans to drill 70 vertical and 56 horizontal wells in the core. There is little question that the Barnett is a phenomenal, world-class asset for Devon. "The Barnett Shale is the gift that keeps on giving," says Foster. "The play keeps growing all the time." Johnson County booms In the past year and a half, the center of Barnett activity has dramatically relocated to Johnson County, south of Fort Worth. At press time, 17 rigs were working in Johnson County alone, and it was home to two of the best Barnett wells in the entire play. Those two wells were drilled by Cleburne, Texas-based Hallwood Energy Corp., which pioneered Johnson County. When privately held Hallwood started working there, the county had no production. Indeed, in its entire history only some 200 million cubic feet of gas had been produced from within its borders. In 2002, the company began a Johnson County drilling program that led directly to the present boom. "We initially started drilling vertical wells and experimented with some different frac and completion approaches," says Bill Marble, Hallwood vice president of land and engineering. "We recognized that we could make commercial vertical wells, which was a big step in itself. Then we moved to horizontal wells." As there was little prior activity in Johnson County, Hallwood had a clean slate on which to work. It was able to orient its wells in the northwest-southeast direction it preferred, develop orderly drilling programs, drill long laterals, and maintain optimum spacing between its wells. And, while it had to lay gas lines and build gathering systems as it progressed, it did not need processing infrastructure. That's because three-quarters of Johnson County lies in the Barnett's dry-gas window. The company has continually pressed the envelope, introducing much larger volumes of water into its completions. These days, horizontal frac treatments are multi-stage and use up to 8 million gallons of water. "We're always looking for new ways to complete the wells, and we try new approaches. Now we're several generations of completions down the road." Last year, Hallwood sold 40% of its assets to Oklahoma City-based producer Chesapeake Energy Corp., which gained Hallwood's 18,000-acre North Block property for $292 million. The asset is just north of Hallwood's 34,000-acre South Block property, in which Chesapeake owns a 44% working interest. At the time of the Chesapeake purchase, the North Block was producing about 25 million cubic feet of gas per day from 31 vertical and 11 horizontal wells. Proved reserves were 135 Bcfe, and Chesapeake noted in a recent conference call that it had identified about 70 proved undeveloped and 90 probable and possible horizontal locations on the acreage. It estimated average costs of $2.2 million for its horizontal wells, with producers expected to make average ultimate reserves of 2.5 Bcfe each. Chesapeake plans to run three rigs, and expects to achieve gas rates of at least 55 million cubic feet per day from the shale by year-end. Hallwood retained 56% ownership and operations of the South Block, Marble notes. "We have continued to expand our holdings, both inside our area of mutual interest (AMI) with Chesapeake in the southern block, and outside the AMI for our own account." Hallwood has already replaced the net acres that were sold to Chesapeake with new Barnett Shale leasing. Beginning in April, Hallwood will have four rigs drilling, making this its busiest year yet in the shale play. "From the acreage that we retained after the sale of the North Block, we have built our production back up to 20 million per day." Hallwood's most recent well is spiking 6- to 8 million cubic feet per day, and the well sold 4.8 million in its second day online. "We regularly exceed the core-area rates in our horizontal wells," says Marble. These days, Devon, Hallwood and Chesapeake have quite a bit of company in Johnson County. Last fall, Houston-based EOG Resources Inc. announced a major initiative in the Barnett, centering on the 93,000 acres it owns in Johnson County. During a recent presentation, president and chief of staff Edmund Segner said the company's goal is to exit 2005 with production of 100 million cubic feet per day, most of that coming from Johnson County. The operator is running five rigs in the Barnett and expects to drill 90 wells this year. Its total position in the play exceeds 400,000 acres, Segner noted. EOG is also looking at the potential for downspacing in Johnson County. It is running a 50-acre downspacing pilot, involving three new wells surrounding an existing production well. Sometime this summer, the company expects to announce results of that project. It is also considering stacked laterals to increase gas recovery from the shale, which exceeds thicknesses of 250 feet through much of Johnson County. (For more on EOG's activity in the Barnett, see "Momentum," Oil and Gas Investor, October 2004.) Growing with the play Privately held Chief Oil & Gas LLC has blossomed right along with the Barnett play. The Dallas-based company started a leasing program in northwestern Tarrant and Denton counties and drilled its first shale well in 1997. By early 2002 it had accumulated about 16,000 acres and drilled 40 vertical wells that were producing 20 million cubic feet of gas per day. Today, Chief is the second-largest producer in the Barnett Shale, and recently completed a volumetric production payment arrangement for $87 million. It has 200,000 net acres, 250 Barnett wells and a production capacity of 110 million cubic feet of gas per day, of which 15% to 20% is curtailed due to market-access issues. The firm is currently running four rigs, and plans to raise that to as many as seven rigs by the end of the year. "The major leasing play is over in the Barnett," says Tony Carvalho, vice president, geology and geophysics. "What we are seeing now is a fundamental shift to cooperation between companies. Now our top challenges are obtaining rigs and seismic crews." After five years of immersion in the Barnett, Chief avoids any broad generalizations about the play. "There is a significant range in well quality, from 1- to 4 Bcfe per well," says Carvalho. "It is certainly possible to drill dry holes and poor wells in the Barnett Shale, and there can be disappointing results." Today, Chief focuses on horizontal drilling. It figures an average all-in cost of $1.6 million for a horizontal well with a 2,500- to 3,000-foot lateral and three to four frac stages. The company makes extensive use of 3-D seismic to site its wells. It has shot more than 20 3-D surveys, and it won't drill a horizontal well without one. "We avoid geologic features in the Barnett like the plague. We look for the most quiet, boring, monoclinal areas to drill." One of the key findings of its extensive seismic program has been the large numbers of karsted and faulted areas it has identified. "Typically, we have been finding that one-quarter to one-third of a lease in the noncore area is not attractive for horizontal drilling." The company also uses microseismic techniques to help fine-tune its frac treatments. "From the microseismic work, we believe the fracture half-length can be more than 2,000 feet. In the Barnett, the effectiveness of the frac job is directly related to the productivity of the well, so we put a great deal of effort into getting the best frac." Chief has been running an aggressive program in Parker County, where it has already drilled 10 wells. Of this batch, two are producing, with a third scheduled to come onstream in mid-March. There is a lack of infrastructure in the area: "The gas marketing situation is not good in Parker County, but a remedy will come within a year as companies build pipelines." (For more on Chief's and other earlier efforts, see "The Barnett Barrels Along," Oil and Gas Investor, December 2003.) Now, in addition to its Parker County work, Chief is adding activity in Johnson County. This summer, it will run two rigs in Johnson County, where it has significant leaseholds in two concentrated areas. Newer players Houston-based Carrizo Oil & Gas Inc. has been in the Barnett since early 2003. "We were looking for a long-lived, manufacturing-type play to complement our onshore Gulf Coast exploration drilling," says president and chief executive officer S.P. "Chip" Johnson IV. Carrizo began by taking small working interests in Barnett wells drilled by several Fort Worth-based independents, then it began acquiring leases in Parker, Hood, southern Tarrant and Johnson counties. At the time, its leases were considered fringe acreage, but the play has expanded to the point that these holdings are now solidly in the desirable fairway. Today, it holds some 40,000 acres of land and is producing 4 million cubic feet of gas equivalent

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per day from 13 net wells. Another 10 net wells are waiting on completion or pipeline hookups, which will more than double its shale production. Currently, Carrizo is drilling a horizontal well in southern Tarrant County and a vertical well in central Parker County. It is also adding a second horizontal rig in the play. It plans to spend $35 million on drilling in the shale this year, with additional investment in land and seismic. To date, it has shot seven 3-D surveys and has three more in progress. It uses 3-D surveys for all of its horizontal drilling, and it reprocesses the seismic and compares that data to information from formation micro-imaging logs. "We think this technique can help us predict the stress barriers in the Barnett, and help us optimally place and fracture stimulate our laterals," Johnson says. If Carrizo doesn't have 3-D seismic over a lease, or has a small lease, it will consider drilling a vertical well. "We've had really good success in south-central Parker with vertical wells." Drilling and completion costs for these vertical wells are about $500,000 apiece, and third-party reserve estimates are 650- to 750 million cubic feet per well. "The Barnett is a technology-driven play, and there's a lot of experimentation going on. The good news is that almost everything seems to work, but we're looking for the optimum approach," says Johnson. "Between downspacing, refracing and multiple laterals there's a lot of room for upside." Calgary-based EnCana Corp. is another firm that has been growing its Fort Worth Basin presence. The company entered the play early in 2002. In the Barnett, EnCana saw a resource play that nicely complemented its other such efforts in the U.S., including its programs at Mamm Creek Field in the Piceance Basin and Jonah Field in the Green River Basin. EnCana added to its Barnett position with two acquisitions in 2004, including acreage held by Tom Brown Inc., which was also working in the Barnett. At present, EnCana holds 160,000 net acres of leases in the basin. Its drilling program is spreading: in 2003, it drilled five Barnett wells, and last year it drilled 36. This year, EnCana plans to jump to seven rigs from the three it ran in late 2004 in Tarrant and Wise counties. The company expects to be producing up to 100 million cubic feet equivalent per day by year-end, up from its average 2004 Barnett production of close to 30 million per day. Barnett heavyweight The biggest deal to hit the Barnett since Devon's purchase of Mitchell Energy is Fort Worth-based XTO Energy Inc.'s proposed $685-million acquisition of Antero Resources Corp. The privately held Antero, based in Denver, has production of 60 million cubic feet of gas per day and proved reserves of 440 Bcfe in the Barnett. Its properties are in the core area in Tarrant County, and in the horizontal play in Johnson and Parker counties. The buy catapults Fort Worth-based XTO to one of the heavyweights in the Barnett. The company entered the shale play in December 2003, when it began an acreage acquisition program. "We started to really focus on the Barnett Shale when horizontal drilling started working," says Keith Hutton, XTO executive vice president. In February 2004, it acquired a private Fort Worth independent for $120 million, gaining 15 million cubic feet of daily production and nearly 100 Bcfe of proved reserves. With the addition of Antero, expected to close in early April, XTO will hold 149,000 net acres and have net daily production of 80 million cubic feet of gas per day from 215 wells. For the balance of the year, XTO plans to run between 15 and 17 rigs in the Barnett. "Our drilling program will be spread all over. We have wells planned across all our acreage, in Bosque, Johnson, Ellis, Parker and Tarrant counties." Hutton says. The company also continues to lease, with more than 40 land-brokers working on acreage acquisition. "We jumped in big, because the Barnett is the only play we've seen that has per-well initial rates and reserves comparable to our East Texas play. It uses water fracs and many of the same technologies that we are very familiar with." One of the key selling points of the play is that almost every operator is making reasonable wells, says Hutton. "What this tells us is that the Barnett will work over a very large area-recovery of natural gas will be greater than expected. That's what got us excited about it." Another fresh face is Stroud Energy Ltd. A private firm in business since 1985, Stroud relocated to Fort Worth in 2000 and started drilling Austin Chalk wells. Patrick Noyes, formerly with Mitchell Energy, joined Stroud in 2003 as its president and chief executive officer. He came with a vision of diversifying the company's asset base. "We plan to grow the company and use as a platform the Barnett Shale and East Texas," he says. During 2004, the company began to build its position in the Barnett, purchasing some 10,000 gross acres from several entities in three deals in Tarrant, Parker and Johnson counties. It has acquired 3-D seismic over two of its areas and plans to finish its third survey shortly. "Our approach is to apply 3-D seismic and horizontal technology to capitalize on these acreage positions, which are a bit out in front of the core area," Noyes says. This year, the company plans to drill 12 horizontal wells and reenter an existing vertical well. The drilling will be spread across its blocks, with wells planned in each county. "I'm optimistic about the Barnett. I've seen it develop from the early 1980s with Mitchell, into the old core area, into the expansion area and now beyond," says Noyes. Beyond Johnson County Companies are also pushing into counties that are farther afield, such as Hood and Erath. "The Barnett is as good in Parker, Hood and other counties as it is in Wise, Denton, Tarrant and Johnson counties," says Bowker. "It's just that each area has its own geologic particulars that require unique completions." Quicksilver Resources is mounting an aggressive program in northwestern Johnson and southeastern Hood counties. The company has drilled a dozen wells to date, and participated in six nonoperated wells. Its gross production is currently 11 million cubic feet of gas per day. The first wells that it completed flowed at initial rates of 600,000 to 1.8 million cubic feet per day; with modifications to the fracing programs, the company reports that its most recent wells are flowing at initial rates between 2- and 2.8 million per day. During 2005, Quicksilver plans to drill 40 net wells on its 207,000-net-acre North Texas leasehold. It is figuring costs of $1.77 million each in its area, including seismic and lease costs, and ultimate recoveries averaging 2.5 Bcfe. Infrastructure is very skimpy to nonexistent in this part of the play, and Quicksilver plans to construct its own pipeline and processing plant. Meanwhile, Denver-based Infinity Inc. is one of the first firms investigating the potential in Erath County. In late 2004, Infinity acquired a 90% interest in 28,400 gross acres in southern Erath and northern Hamilton counties. It has drilled four horizontal Barnett wells that are in various stages of completion A fifth well is being drilled. "We're encouraged by the results of our test wells," says Jim Dean, Infinity vice president, strategic and corporate development. "The Barnett looks very good in our area." In Infinity's leasehold, the Barnett is between 125 and 200 feet thick and occurs at depths of approximately 4,000 feet. Its first wells have cost nearly $2 million, but the company expects to lower those as it fine-tunes its drilling and completion programs. "The big question in our area was whether the shale would be thick enough to avoid problems with the completions, but we've been satisfied with our initial fracing," he says. Indeed, Infinity treated a dozen stages in one of its wells. In February, the firm was sufficiently encouraged by its experiences to add 24,500 net and gross acres in west-central Comanche County to its position. "The Barnett is thinner and shallower in this area, but we think we have a workable play." The new lands are some 30 miles from its Erath County drilling, and they have some potential in the Marble Falls interval as well as the Barnett Shale. "If everything goes according to plan, starting in June we will take on a rig full-time, and possibly add a second later in the year." says Dean. While there is no market outlet yet for Infinity's gas, that situation should be remedied shortly. At press time, Houston-based Louis Dreyfus Energy Services had nearly completed the first phase of a new system in Eastland, Erath, Bosque and Hill counties that will service the southern portion of the Barnett play. The oil-prone west side Finally, efforts are under way to determine how far into the oil window economic wells can be drilled. Western Parker, Jack and Palo Pinto counties are seeing leasing and some drilling. Notably, EOG Resources recently acquired Jacksboro, Texas-based independent Swan Production Co. and has several

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wells in progress in Jack County. For some, these areas are attractive because there is existing infrastructure, built to handle the shallower conventional production. And, the well costs are lower because the Barnett is closer to the surface. Dallas-based Five States Energy LLC has taken an acquisition approach to the Barnett. Last year, the company acquired approximately 10,000 gross acres in Wise and Jack counties that had shallow Pennsylvanian production. "We're currently evaluating our options in the Barnett on our held-by-production acreage," says J. Robert Ransone, Five States chief financial officer. "We are excited about the potential on such a substantial block of acreage" He concludes, "There are still companies not in the Barnett that are eyeing the Barnett. It's a wonderful play, and it has a long way to go." The Barnett Shale Peggy Williams, March 4, 2002 For decades, the wide countryside north of the Dallas-Fort Worth metroplex concealed a sleeping giant of a gas field. The thick, pervasive Barnett Shale was well known to local geologists-the Mississippian-age formation is a rich, organic shale that had sourced many of the conventional accumulations in and around the Fort Worth Basin. But, it was tight as a tombstone. Most everyone considered it hopeless as a potential reservoir. Mitchell Energy & Development Corp., however, believed in the shale. It spent two decades patiently experimenting with the Barnett, plying the recalcitrant reservoir with the latest engineering advances. The Woodlands, Texas-based independent was astonishingly successful. Today, Newark East Field is one of the very largest gas fields in Texas, producing more than 400 million cubic feet per day from more than 900 wells. And farsighted Mitchell owned most of it. In January, Mitchell was merged into Oklahoma City-based Devon Energy Corp. in a deal valued at $3.5 billion. Devon gained 2.5 trillion cubic feet equivalent (Tcfe) of proved gas reserves, almost 300,000 net acres of undeveloped land, 9,000 miles of pipelines and six gas-processing plants, entirely in Texas. The Barnett Shale alone accounted for 2.1 Tcfe of Mitchell's proven reserves. Moreover, it appears that the Barnett Shale still offers generous growth potential. "It's truly phenomenal in its nature. I predict that our grandchildren will be unlocking the vast reserves and producing significant quantities of Barnett Shale gas for years and years to come," says Rick Clark, Devon Energy vice president, Permian-Midcontinent division. Devon sees the Barnett as a unique, unconventional gas resource that provides both low-risk development growth in production and reserves and long-term growth potential through exploration and future technical advances. The play's history The Barnett's transition from a source rock to a commercial reservoir is a story of time, money and patience. From the early 1950s until the rise of the Barnett play, drilling in the Fort Worth Basin had focused on the 2,000-foot-thick Boonsville Bend conglomerate, a shallower Pennsylvanian formation. The Barnett was the source rock for these overlying clastic reservoirs, which have produced more than 2 Tcf of gas. As those reservoirs matured and opportunities for further exploitation withered, attention turned to the Barnett. The shale is ubiquitous throughout the Fort Worth Basin, covering a 4,200-square-mile area. It ranges in thickness from about 200 feet in Parker and Jack counties to about 900 feet right against the Muenster Arch, which trends northwest-southeast through Denton County. In the most active area of drilling-eastern Wise, western Denton and northern Tarrant counties-the Barnett occurs at the relatively shallow depths of 6,500 to 8,500 feet, and attains an average thickness of about 450 feet. In core, it looks like a first cousin to blackboard slate, and about as permeable. Clearly, engineering would be the key to unclench the Barnett's potential. Mitchell discovered Newark East Field with its C.W. Slay #1 in 1981. From then until 1997, wells were fractured with massive hydraulic stimulations, using very viscous, gelled fluids and as much as 1.5 million pounds of sand for proppant. The pace of drilling was measured-only about 50 Barnett wells had been drilled in the entire play by 1989. Those early wells tended to peak at production of around 750,000 cubic feet of gas per day, before beginning the steep hyperbolic declines that are typical of stimulated shale-gas wells. Mitchell estimated its wells, prior to 1990, were completed for an average of $850,000 and recovered about 600 million cubic feet of gas each. Notably, the company could afford to experiment with the unconventional reservoir-until 1995, it held a gas contract that guaranteed very favorable prices. In the mid-1990s, Mitchell began to develop Newark East Field on 40- to 50-acre spacing. In 1997, the company experimented with an innovative frac technique that was enjoying success in the Cotton Valley Sands in East Texas. The water frac, also called a light-sand or slick-water frac, employs ungelled frac fluid and very low sand concentrations, injected at very high rates. Just 100,000 to 150,000 pounds of sand are used in a treatment, making a job far less costly than a massive-style frac. Although pumping less sand can seem counterintuitive, operators believe the technique delivers excellent fracture lengths while minimizing fracture heights. The water frac is well suited to low-permeability reservoirs, which require extensive fractures to deliver commercial volumes of gas, but where costs must also be tightly controlled. Better yet, the wells produce at stronger rates. Today's Newark East completions boast average peak rates of about 1.4 million cubic feet per day. Plus, the lower costs allow more intervals to be fraced. In many-but not all-parts of the field, the shale has an upper member and a lower member, separated by the Forestburg Lime. While older wells were stimulated in the Lower Barnett only, newer ones are completed in both the Upper and Lower Barnett. Part of the reason the Barnett in the Newark East area responds so superbly to stimulations is that it is sandwiched between tight limestones in the Pennsylvanian Marble Falls and the Ordovician Viola. The limestones function as extremely effective frac barriers. The Viola is particularly important because it overlies the Ellenburger, which tends to produce salt water. A Barnett well that produces water is a production nightmare; normally the wells make little or no water. "The key to the stimulation is finding the upper and lower boundaries and designing a job of the correct size," says Nick Steinsberger, Devon operations engineer. "The design length has a definite impact on the initial rates, and we want to get high rates in the first years of production." A water frac typically costs Devon about $100,000 to $125,000, about 60% less than the cost of a massive gelled frac. The Newark East area Devon currently has 800 Barnett wells and gross operated production of 345 million cubic feet per day, almost all in the 120,000-acre core Newark East Field. That core sits in the middle of a 435,000-acre area that is more lightly drilled, but where wells have encountered Barnett Shale similar to that in the proven area. Devon holds some 90,000 acres in the core area and another 140,000 acres in the expansion area. At press time, Devon was running 18 drilling rigs; in 2001, it drilled 321 Barnett Shale wells. It can maintain that pace for years, as it holds 1,100 additional locations in the core area alone. Going forward, the company estimates its capital costs at approximately $750,000 per well, with each well recovering 1.25 billion cubic feet of gas (Bcf). "In our economics, we cut off the average life for a Barnett well at 25 years, but these wellbores will actually be producing much longer," says Mark Whitley, Devon's production and operations manager for the Fort Worth Basin. "The most important time is the first five years, because that's when we make most of the gas." Devon can drill and complete Barnett wells for an average finding cost of 60 cents per thousand cubic feet, a figure that explains why the company continues its brisk activity even in these times of soft gas prices. An endeavor that is even more economic than drilling new wells has

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turned out to be the refracturing of existing ones. Wells that were completed with the old-style massive gelled fracs respond extraordinarily to a water frac, often regaining peak production rates close to that of a new well. To date, the company has refraced 180 wells, and still has an additional 200 such treatments slated for this year. "On average, we have added new reserves of 700 million cubic feet per well, for a cost of $300,000 each," says Whitley. "Our finding and development costs for a refrac are about 45 cents per thousand cubic feet." This ability to come back to a well after several years of production and recapture or improve its rate and its reserves is one of the marvelous features of the Barnett play. Apparently, after depletion has reduced the pressure around the wellbore, a subsequent stimulation establishes new fracture networks. The future holds another possibility as well. To date, Newark East has been developed on 55-acre spacing, but Devon has six pilots under way to investigate downspacing to 27 acres. "We have learned over the years that we can't look at just one area. We deal in averages in everything we do in the Barnett," says Whitley. Therefore, the pilots are placed in areas with various productive characteristics-dry gas, rich gas, excellent producers, average producers. "We don't know yet if we will be able to downspace all the field or a portion of the field, but in either case it could mean thousands of additional wells." Even with the best application of current technology, only about 8% of the 147 Bcfe of gas-in-place per square mile is recovered from the Barnett Shale, he says. "We have a huge target here for the future." Indeed, in 1998 the United States Geological Survey independently estimated the Barnett Shale play contained technically recoverable gas resources of 10 Tcf; to date, less than one-quarter of that volume has been developed. Gas gathering and processing is another facet of the play. Throughout the northern half of Newark East Field, the gas is quite rich in condensate, while the southern portion yields dry gas. In the wet-gas area, Devon gathers both its own and third-party gas and sends it to its Bridgeport, Texas, plant for processing. Presently, the plant can handle 450 million cubic feet per day, and Devon plans to expand that to 620 million cubic feet this year. The midstream assets add revenue to Devon's upstream operations, allowing it to take full advantage of the rich Barnett gas. The integration of the businesses also guarantees multiple pipeline interconnects, on-system markets and firm transportation for Devon's gas. For decades, the only outlet for the basin's gas was a pipeline that could carry about 150 million cubic feet per day to Chicago. Last fall, the Chicago line was to be upgraded to carry 200 million per day, but that expansion has run into delays. (At press time, the project was not completed.) The remainder of the basin's production was sold to local markets for power generation and home heating, and the demand was very weather-dependent. The picture for the basin changed with the construction of a 24-inch pipeline to carry gas from the Bridgeport plant south to interconnect with two 36-inch intrastate pipelines. Devon now can send 360 million cubic feet per day through this pipe, which has added greatly to its marketing options. Additionally, the company recently looped a line and added compression in the southern, dry-gas portion of the field. The expanded capacity connects directly to pipelines that serve the Dallas-Fort Worth metroplex markets. A competitive field The combination of a low-risk play with reasonable drilling and completion costs attracted industry attention, and many companies became intrigued with the Barnett play. Some secured positions in the highly sought after core area; others have concentrated their efforts in the expansion area. The play even has enough sizzle to interest a player as large as Burlington Resources. The company has been active in the Decatur area, in Wise County on the northern side of Newark East. Burlington has 4,000 acres on which it holds deep rights, and has drilled eight wells to date. "We began drilling in late October, and we have been running one rig continuously," says Bill Bolla, Burlington's Midland-based Midcontinent division exploration manager. The company has completed six wells and tied four of those into a pipeline. So far, it likes what it sees. The engineering aspects of the Barnett appeal to Burlington-it prides itself on its drilling and completion expertise. "We're trying some new things-we're approaching the stimulations with some different ideas. We've had some interesting results early on, and we're encouraged by that." Incidentally, Devon is a partner in the Burlington acreage, holding a 25% working interest. "Lower prices could slow the growth of the play in the near term, but the resource exists across a very large area. We stand by the long-term fundamentals of natural gas and hope to expand our position in this area," says Bolla. A smaller firm that is quite active in and around the core area is Dallas-based Chief Oil & Gas LLC. Chief was founded in 1994 to exploit undeveloped reserves in North Texas, specifically in the Fort Worth Basin. Initially it concentrated on drilling Boonsville Bend conglomerate reservoirs, successfully completing some 35 wells. As it become apparent the Barnett was overtaking the basin's other plays in size, reserves and productive capability, Chief became intrigued. It drilled its first well in the fall of 1997. The firm concentrated on leasing in an area where it believed the field was most likely to extend. It has accumulated 10,000 acres in northwestern Tarrant County and 6,000 in Denton County, and has drilled 42 wells. Presently, Chief is running a rig in each area. "We fund our drilling through investors, internal cash flow and bank debt," says Trevor Rees-Jones, president. The Barnett has been good to Chief-during the last two years, the company's production has grown from around 4 million to 20 million cubic feet per day. "Based on what we know at present, we have at least 150 locations left to drill, and potentially more than 300." Chief believes that identifying fractures is crucial to making a commercial well. "We run specialized logging suites to identify sweet spots in the Barnett Shale," says Tony Carvalho, manager of geology. "What we are looking for is how well the rock is fractured." The number of fractures identified by the logs is a broad indication of how a well will perform after stimulation, but it's not the whole story-sometimes the Barnett delivers surprises. Initially, the company concentrated on developing its Denton County position, where it still has another 50 locations to drill. The Tarrant County holdings are now taking center stage, however. Tarrant County poses special challenges for the operator. Wells there are prolific, producing dry gas at rates up to 1.5 million cubic feet per day. But, Chief is bumping into the city limits of Fort Worth. (See sidebar.) Due to the amount of present and planned development, Chief often agrees to predetermined well locations and road and pipeline placements when it takes a lease. This way, the landowner is comfortable with exactly where the land will be affected. If it makes business sense, the company will also buy surface rights for a location on the urban fringes. Because of the surface restrictions, Chief expects that about one-third of its Tarrant County wells will have to be directionally drilled. "Many people in Tarrant County think they are going to sell their land for $10,000 to $20,000 an acre because everybody is going to come in and build houses," says Cliff Thomson, operations and engineering vice president. The landowners want the smallest possible location for a well, but an operator must have enough room to allow for subsequent fracture stimulations. Chief can squeeze a one-well location down to close to an acre after drilling and completion, if a water source for future fracs is available. If it needs to use frac tanks-50 to 60 of these might be required for a water frac-the location will require at least three acres. "This will be an active area for a long time, and we need to have adequate access." Another hurdle in the Tarrant County area is gas marketing. The county doesn't yet have infrastructure, and the dry-gas pipelines that would take gas from that area are already close to capacity. Chief is investigating several options, however, and expects to have a solution shortly. The scenario is much more established in Denton County. In 1996, the firm negotiated a contract that covered all of its production. Bottlenecks are still a problem, however, because so much gas is being brought to market from the area. An independent that has long been established in the Barnett play is Dallas Production Inc., the operating company of Pitts Oil Inc. The firm controls 35,000 acres in Wise and Denton counties, and during the

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past two years has drilled 70 wells. In the early 1980s, Dallas Production drilled several Barnett wells with Mitchell on some jointly owned acreage. It didn't become really active until the late 1990s, however, after water-frac techniques reduced costs. At present, the company plans to restrict its new drilling to leases with drainage problems or short-term obligations. It will focus instead on doing remedial work on its existing wells, which are in the gas-condensate area. "We've had problems all fall with pipeline shutdowns, and because of that our wells have loaded up," says David Martineau, exploration manager. Through an affiliate, the company owns two 10,000-foot drilling rigs, which it will put to work for third parties. "We have a lot of acreage, and we will continue to be active in the play. But, unless gas prices go up or unless drilling and service prices start to come down, the Barnett play cannot be sustained at $2 gas prices," he says. Threshold Development Co., another local operator, owns a prime position in the heart of Newark East. The Fort Worth company holds approximately 6,000 acres in the southeastern Wise County and northeastern Tarrant County. Threshold is a family firm, started by Johnny Vinson in 1971 and currently run by his son Bud, president since 1987. Currently, the firm is drilling its twelfth well in the Barnett Shale. It has been running a rig steadily since last August, and plans to continue at that pace. Threshold prides itself on being an efficient, cost-effective operator, and it is looking to expand its holdings in the Barnett Shale. In addition to its Barnett properties, Threshold has interests in the Permian and Delaware basins and in Mississippi. Barnett frontiers Although Newark East Field and its expansion area cover an amazing amount of countryside, these account for mere percentages of the Barnett's total extent. The wider reaches of the play have also generated enthusiasm. The present boundaries of the productive Barnett are defined on the south by the city of Fort Worth; on the east the Muenster Arch and Ouachita Front; on the north by a phase change to oil; and on the west, by the pinchout of the Viola. Operators are pushing against these limits, and are particularly keen on expansions to the west and south. How can an explorationist focus down on a prospective area? A quick survey of the Barnett might lead observers to the conclusion that it is a gas-farming project, just a matter of plunking down rigs and lining up frac trucks. That is far from reality, however. The Barnett has its own peculiarities and mysteries, and like most reservoirs refuses to behave in a standard manner. Geochemistry is a crucial aspect of the play. "The Barnett is a source rock that has become a reservoir in its own right," says Dan Jarvie, president of Humble Geochemical, a service firm based in Humble, Texas. Through time, the Barnett has undergone several cycles of very deep burial and uplift. The rock generated oil, expelled it and resealed itself during these episodes, though like most thick shales it was not very effective at expelling. As the rock cycled through these episodes, it was fractured in the primary generation phase, and then again when the oil cracked to gas. The microfractures caused by the cycles of hydrocarbon generation and oil cracking were filled enough to allow production of gas, although now the rocks are cold and do not actively generate hydrocarbons. When operators relate the thermal maturity to information on the Barnett's composition, they can predict the areas that are most likely to have dry gas, wet gas or oil. Some companies, such as Devon, seek out the wet-gas areas; others would rather find dry gas; some seek to avoid the oil window. "Geochemistry looks at what is in the rock; other tools are indirect. It identifies sweet spots," says Jarvie. Another factor to consider is the variable lithology of the Barnett. It appears that the composition of the rock has an effect on the amount of natural fracturing, says Floyd "Bo" Henk, a McKinney, Texas-based consulting geologist with The Pacheron Group. Henk's specialty is reservoir description. "The Barnett was deposited on a ramp/deep-shelf setting within an incipient foreland basin in a restricted anoxic system. In general, it's a finely laminated, organic-rich black shale comprised of mixed-layer illite/smectite clays. Interbedded with these organic-rich shales are carbonates and chert, found in varying amounts across the basin. Apparently, a good amount of carbonate debris came into the system, probably on storm-event beds in the form of sediment gravity flows." Chert is a vital component. "The Barnett has some silicified members, primarily composed of sponge spicules. That's probably the part of the formation that is fracturing. The higher the silica content and chert content, the more likely that the shale will have natural fractures and be a good candidate for induced fractures with a lower frac gradient." Explorationists also need to locate areas of good natural fracturing. Some firms chase basement linements, while others look for areas of karsting and collapsing of the underlying Ellenburger. Seismic, where available, can be helpful. Interestingly, very close proximity to faults or shear zones seems to be detrimental to production, at least in the areas that have been developed to date. "Eventually, the Barnett could be one giant gas field, with some areas producing better than others. Whether the better wells are found in areas of thicker isopach with more chert and less carbonate, we don't know yet. We also don't know the exact role that karsting and maturation are playing in the production," says Henk. "We're still learning a lot about the play." Many companies are intrigued with pushing the play to the west past the Viola subcrop, which runs roughly north-south through the middles of Wise and Johnson counties. Success has been stymied in this part of the Barnett by the absence of the Viola limestone. Without that bottom seal, the stimulations tend to travel down into the Ellenburger and bring on copious amounts of water. Devon holds more than 100,000 acres in Parker and western Wise counties, much of it held-by-production from the shallower Bend conglomerate fields. It and several other operators are intent on solving this engineering puzzle. Ideas include varying the frac designs; drilling only a couple of hundred feet into the Lower Barnett and then fracing; employing an artificial frac seal; or drilling horizontal wells. Quite a few firms are also interested in skipping over the city of Fort Worth and expanding the play to the south, particularly into Johnson County. Although the county is very lightly explored, its geology appears very similar to that in the Newark East area. Devon holds 90,000 acres in central and eastern Johnson County and plans to drill several exploratory wells there this year. Most of its acreage is east of the Viola subcrop, so it has bottom seal. Adexco Production Co., a Fort Worth-based independent, has assembled more than 40,000 net acres, mainly in southern Johnson, northern Hill, northern Bosque and eastern Somervell counties. The company first took a regional look at the play, using source-rock geochemistry in addition to all the available subsurface data. "We studied a 15-county area, and we believe that there is potential for another Newark East Field in the Barnett," says Craig Adams, vice president. "We like the Barnett because it is a repeatable play. The high-graded fairway does not have the conventional risks of reservoir, source, trap, seal and charge failure. Gas charge has been proven over a multi-county area, and additional drilling will be required to find new sweet spots outside of Newark East Field." About half of Adexco's acreage has the Viola bottom seal beneath it, but the company believes the details of the local geology are more critical to success. "There are areas where the Viola is wet, and areas where the Ellenburger is tight. The frac technique that works in Newark Field may not be the technique that ultimately proves to be effective in other areas." Adexco is seeking partners to help it with evaluation and development of its acreage block; it also has a small position in northern Tarrant County. Another player intrigued with the southern area is Burlington Resources. In addition to its Wise County leases, Burlington has a 30,000-acre contiguous block in Bosque County. It plans to drill its first Barnett well on the leases by midyear. "A few wells have been drilled down there, but most of them have not been successful," says Bolla. "It comes down to the completion and the ability to keep the water out." The bottom seal is not present in that area, so the fracs have to be designed accordingly. "It always comes back to how much it costs to get a given volume of gas."

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Finally, the productive area could potentially be expanded to the north and northwest. Here, the Barnett enters the oil window, and because it is so tight, its relative permeability to oil is quite low. As yet, companies are still struggling to produce commercial rates in this area. Some are trying such techniques as submersible pumps. If successful, the prospects are vast: the Barnett continues up into Montague and Clay counties and almost into Wichita Falls. So, keep an eye on the Barnett. It's a reliable producer that already covers an astounding area, and it will certainly weather this time of low gas prices and come roaring back. Perseverance created the initial play, and many firms plan to persevere in their attempts to extend its boundaries.

OTHER OGI BARNETT ARTICLES

Shale Shangri-La, Peggy Williams, Oct 1, 2009 It’s a brave new world for U.S. shale gas. Industry groups, academics and financial analysts have joined the chorus singing the praises of this clean, domestic and abundant energy source that has emerged in the past few years. And yet, there are some voices crying in the wilderness. Shales are not all they seem; the hype is overblown; the estimates of potential reserves are wildly optimistic. It’s good to consider all arguments, and we all know that statistics can be pushed and pulled to fit various scenarios. Analysts at Calgary-based Ross Smith Energy Group have taken a hard look at the economics and resource potential in the best areas of known shale plays. Manuj Nikhanj and Salim Jamal recently released a study that concluded that North America’s eight largest shale plays hold some 475 trillion cubic feet of recoverable resources—just in their core areas. That’s a lot of natural gas. The Barnett shale, the granddaddy of modern shale plays, supplies almost 10% of Lower 48 gas production from an available resource base a tenth that size… The Ross Smith analysts are careful to note that the presence of shale does not automatically ensure economic success… Limited Barnett Production Cuts Into Midstream Plans, But Not Long-Term View, Frank Nieto, October 22, 2009 While many midstream companies are maintaining a long-term commitment to the Barnett shale, the formation has given up its status as the “hot play” to both the Haynesville and Marcellus in the eyes of many industry players. Much of this, of course, has to do with the downturn in both natural gas prices and the overall U.S. economy. However, the Barnett remains one of, if not the largest natural gas plays in North America with over 2 billion cubic feet in proved reserves. The play has become known as the “grandfather” of unconventional gas shale plays with many companies first perfecting horizontal drilling techniques in North Texas earlier this decade. As such, much of the build-up for infrastructure, specifically gas processing plants, occurred between 2003 and 2007. There are currently about 13 natural gas processing plants in the play with a fourteenth ready to be built by Crosstex Energy Services. The as-yet-built Bear Creek plant would be the company’s fourth plant in the Barnett, but the current downturn has the plant off the company’s radar. “We own it, but have never installed due to the downturn in drilling activity and the economy. It doesn’t look like we’ll need it for quite some time now. There are no plans to install it at this point. It’s not even on the backburner right now. If we found somebody with the right price tag we would probably sell it,” Scott Williams, the company’s senior vice president of commercial services told Gas Processors Report…… Barnett Players Keep Production Growing, Jeannie Stell, March 1, 2009 Rig counts are falling all over the U.S., in some weeks by as much as 40 to 70 rigs. In the Barnett shale play in the Fort Worth Basin, activity is down about 30% from a year ago, according to a recent report from Tudor, Pickering, Holt & Co. Securities Inc. While that is the general trend, it’s not true for all producers in the basin. Despite falling rig counts, some operators are still reporting increases in reserves, production and take-away capacity. “We had a very good year in 2008,” says Glenn Darden, president and chief executive for Fort Worth-based Quicksilver Resources Inc. “We once again had big reserve additions, resulting in about 2.2 trillion cubic feet of proved gas reserves, including 1.9 trillion in the Barnett shale alone. That’s a 58% increase over the past year from just the Barnett.” The increase is partly attributable to bringing new wells online at the company’s organically grown Lake Arlington and its acquired Alliance projects in Tarrant and Denton counties. In August 2008, the company acquired producing and nonproducing leasehold, royalty and midstream assets associated with the Barnett shale in northern Tarrant and southern Denton counties. The assets, representing about 20% of its base, were purchased from Chief Resources LP, Hillwood Oil & Gas LP, Collins, Young LLC and others for $1 billion and some 10.4 million shares of common stock…

How Texas Struck It Rich Beneath Suburbia, Elizabeth Ames Jones, August 7, 2008 In the 1980s, Houston wildcatter George Mitchell drilled the first well into the Barnett Shale formation that stretches through north and central Texas. He tapped into what would turn out to be one of the largest onshore natural gas reserves in the United States. It would take nearly two decades and millions of dollars to develop the horizontal, hydraulic technology necessary to bring that gas to the surface. But today there are about 7,500 gas wells in the Barnett Shale - many located in the city limits of Fort Worth, and some a stone's throw from suburban homes and schools. If there is an energy crisis in this country, it is because too many states and too many lawmakers in Washington are too timid about allowing entrepreneurs to bring to the surface what is buried right below us. In Texas, we're not timid. Thanks to longstanding public policy encouraging responsible production, 18% of all the oil and 30% of all the natural gas produced onshore in the U.S. is produced in this state. That makes us the No. 1 energy-producing state in America. As a former Texas legislator who served on the House Energy Resources Committee, and now a member of the Texas Railroad Commission which oversees the oil and natural gas industry, I know about energy policy. Every rig that dots the landscape of the Lone Star State is drilling a well permitted by the Texas Railroad Commission RRC Chairman: Barnett Shows Urban Resources Can Be Developed Safely, John A. Sullivan, August 1, 2008

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The Barnett shale may become one of the most important plays now being developed and not for the obvious reasons, according to Michael L. Williams, chairman of the Texas Railroad Commission. “I thank God for the Barnett shale and I thank God for those counties that it is in. With the development of the Barnett shale, we are showing the world that you can have large-scale developments safely in an urban environment,” Williams says. “With gasoline at $4 a gallon and natural gas at $12 per MMBtu, we are finally having a chance to have a dialogue with the rest of the nation about energy development.” Among the questions the Barnett development is helping answer will be questions raised in other parts of the country, Williams says. He spoke at a recent Greater Houston Partnership program… Nichols on the Barnett and Washington, Leslie Haines, June 1, 2008 J. Larry Nichols and his father, John, founded Devon Energy Corp. in 1971 and took it public 20 years ago this year, never dreaming that today it would have a $50-billion market cap. Early on, the Oklahoma City-based producer was known for modest natural gas wells in the San Juan Basin and sponsoring the first public drilling partnership. By year-end 2007, Devon had proved reserves of nearly 2.5 billion barrels of oil equivalent. Production in 2008 will be 240- to 247 million BOE. The company stands out lately in two ways: being a pioneer in the Lower Tertiary play in the deepwater of Gulf of Mexico, where it has four discoveries, including the Jack discovery with partners Chevron and StatoilHydro; and being the leader in the Barnett shale with 1 billion cubic feet per day of net production.Devon is the largest acreage-holder in the so-called core area of the Barnett, following its 2002 entry into the shale by acquiring Mitchell Energy & Development Corp. In fact over the years, Devon has grown exponentially through acquisitions in the U.S. and internationally, but the strategy is now getting refocused. It recently announced the sale of its Equatorial Guinea holdings for $2.2 billion, one of the last of a series of divestments marking its exit from Africa. It will remain focused on U.S. and Canadian natural gas, the deepwater Gulf and offshore Brazil, and on Jackfish, its oil-sands field in Alberta. There output is more than 13,000 barrels of oil per day and will reach 35,000 barrels per day in 2009. Devon also retains a small slice of the vast ACG Field in the Caspian Sea. After getting a geology degree from Princeton and a law degree from the University of Michigan, Nichols clerked for former U.S. Supreme Court Justice Earl Warren before forming Devon. While running Devon, he served on many civic and industry boards and was on the National Petroleum Council board. The IPAA named him Chief Roughneck in 2000. Recently, Oil and Gas Investor asked Nichols about Devon’s new directions and his thoughts on the intersection of the industry and politics… Barnett Gas Unstranded, Jeannie Stell, March 14, 2008 The Barnett shale, first discovered in 1981, holds an estimated 26 trillion cubic feet of gas resources, centered near Fort Worth and covering some 8,000 square miles in 17 counties. Its boundaries are still expanding. Some say the Barnett shale could possibly be the largest onshore gas field in the U.S. Operators have cracked the code to unlock tight-gas, low-permeability reservoirs with horizontal drilling, hydraulic fracturing, 3-D seismic and new completion technology, allowing production to grow at an ever-increasing rate… Interview: The Barnett Shale's Chief - Trevor Rees-Jones, Leslie Haines, January 16, 2007 In January 1984, Trevor Rees-Jones left a successful partnership as an oil and gas bankruptcy lawyer to get into the oil business, which he had found to be more fascinating than practicing law. But within 18 months, oil had fallen from $30 a barrel to $10. Laughing about it now, he says it was a good thing he was single at the time or he never could have done it. And he didn't think the law profession would take him back. But some 20 years later, his timing proved impeccable. Last spring, Rees-Jones sold most of the assets of his Chief Oil & Gas LLC for $2.63 billion: the E&P properties in the package went to Devon Energy Corp. for $2.15 billion and the midstream assets went to Crosstex Energy for $480 million. This was at the height of the Barnett Shale drilling boom, when gas prices were surging to $8 per thousand cubic feet. At the time, Chief, a private company, had 180 employees and 617 billion cubic feet equivalent of proved reserves under 169,000 net acres. Devon expects to drill as many as 800 wells on those leases during the next five years and produce at least 2 trillion cubic feet of gas. Now Rees-Jones is redeploying the proceeds into several new companies that will drill in the Barnett as well as in other basins and states-and into his ranch west of Fort Worth, which he regards as good therapy, a place to spend quality time with his two teen-aged sons... Make way for Shales, Peggy Williams, September 12, 2006 Shales have moved to the forefront of exploration in the onshore U.S. The rousing success of the Mississippian Barnett Shale play in North Texas has inspired a sweeping search for other producing shales throughout the country. For most working petroleum geologists, shales are a scientific frontier. Efforts are now centered on classifying shales by their productive potentials and characteristics. At the recent Rocky Mountain Natural Gas energy summit in Denver, co-hosted by the Colorado Oil & Gas Association, the Rocky Mountain Association of Geologists and the Denver Geophysical Society, lectures on shale plays brimmed with participants. John Curtis, a professor at Colorado School of Mines in Golden, Colorado, spoke about shale-gas exploration and current U.S. plays. According to Curtis, 7.4 trillion cubic feet (Tcf) of gas have been produced from shales in the U.S. since the first gas well was drilled in 1821 into Devonian strata in Fredonia, New York…

Breaking Into The Barnett, Nissa Darbonne, April 4, 2006 EOG Resources Inc. reported a screamer Barnett Shale well in December-10 million cubic feet per day-in Johnson County. To those unfamiliar with the play, this may not be meaningful. To Barnett fans, however, the news further fracs the play's potential wide open-the flow is huge and the location is outside the traditional core area. Thousands of acres held by EOG and others in the county are theoretically worth much more since the news, and the rumble is being felt by acreage-owners elsewhere in what has been the noncore Barnett. So, just when prices for Barnett assets seemed high, there they grow again. Properties in the area have jumped from the 76 cents per proved thousand cubic feet equivalent (Mcfe) that Progress Energy Corp. paid Republic Energy Inc. and others for 195 billion cubic feet equivalent (Bcfe) of Barnett reserves in early 2003 to the $6.19 per Mcfe paid for another Barnett producer and its 40 Bcfe of proved reserves in Johnson County last summer.

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The Barnett is proving to be no sleepy giant-it has produced surprises regularly in its roughly six years since making the E&P map when early play worker Mitchell Energy & Development Corp. began reporting initial results. Devon Energy Corp. bit early, buying Mitchell in January 2002 and getting 2.5 trillion cubic fee equivalent (Tcfe) of proved for $3.5 billion (a bargain $1.40 per proved Mcfe). It has had the chance to play the Barnett anthem at investor presentations ever since. And, the buzz is loud in the Fort Worth Basin. A relatively E&P-savvy region, some landowners are going to drill their own wells. Many are refusing leases longer than three years… Barnett Shale Continues To Draw Interest, Nissa Darbonne, August 4, 2005 New players in the burgeoning Barnett Shale play in North Texas continue to form-some rank start-ups and some of them business units of established E&P companies. "There are always new groups coming in," says Ray Ledesma, president of Lago Vista, Texas-based Star of Texas Energy Services. "Ultimately there will be a handful of big players in the area but that is a ways off." The company, which was founded in 1997 to explore the Texas Gulf Coast and deep South Texas, has been focused on the Barnett Shale's unconventional gas reserves since 2001. It has drilled or participated in more than 60 Barnett wells since then, 39 of which were vertical. "We're increasing our position in Bosque and western Parker counties," Ledesma says. The company sold a group of wells to EnCana Oil & Gas USA earlier this year in Denton and northern Tarrant counties. It currently has more than 55 wells in Denton, Wise and Tarrant counties. Star of Texas ranked No. 12 in top Barnett Shale producers in 2004, according to Texas state statistics. The company produced 1.9 billion cubic feet (Bcf) of gas during the year from its Barnett wells. The other top producers in 2004 were Devon Energy Corp. (204.8 Bcf), Chief Oil & Gas (33.4), Burlington Resources (22.6), Antero Resources (23.7), EnCana (8.1), XTO Energy Inc. (6.7), Hallwood Energy (3.1), J-W Operating Co. (4.0), Four Sevens Operating (2.6), Ryder Scott Oil Co. (2.1) and Republic Energy (1.2). Since year-end 2004, at least two of the producers have been bought out: Antero Resources by XTO Energy, and some of the Hallwood Energy assets by Chesapeake Energy Corp. The prominence of the Barnett Shale's gas output is shown in other Texas statistics: the play was the No. 1 gas producer in the state in 2004 (a total of 371 Bcf of output), and the No. 1 gas producer in Texas in 2004 was Devon Energy, which brought up 337.2 Bcf, of which 204.8 Bcf came from the Barnett alone…

Paleozoic Gas Shales, Peggy Williams, July 29, 2005 The rousing success of the Mississippian-aged Barnett Shale play in North Texas has reopened the industry's eyes to the potential locked in the organic-rich Paleozoic shales layered into other petroliferous basins. Shale gas plays are continuous-type accumulations, covering immense areas. They are a well-known resource-William Hart drilled the first shale-gas discovery in 1821 in Fredonia, New York. A pipeline made from hollowed-out logs transported gas produced from the Devonian Dunkirk Shale to the town center, where it was burned to light the main street. Nonetheless, shale wells have traditionally been modest producers characterized by low production rates and long lives. And despite its lengthy history, shale gas has only managed to comprise a small percent of total U.S. gas production. That's all changed in recent years. Today's improvements in horizontal drilling and fracturing technologies are delivering some sterling rates from shale wells. Operators around the continent have taken notice of the prolific production flowing from the Barnett Shale, and are exporting techniques honed in that play to new basins. Naturally, each basin is geologically unique and requires a custom approach. Gas shales are both source and reservoir in one package, and they are far from uniform. Characteristics such as total organic contents (TOC), gas contents, thickness, depths and lithologies vary from basin to basin and also change within basins. Additionally, gas shales can contain biogenic or thermogenic methane, and their thermal maturities can fall along a broad continuum. Too, both sorbed and free gas are found in gas shales, and the shales can be overpressured or underpressured. For the 21st-century explorer, working with gas shales means experimentation… A Major Expansion For The Barnett Shale, Peggy Williams , October 29, 2004 EOG Resources plans a salient expansion of the Barnett Shale play in North Texas. Several years ago, the Houston independent started a leasing program in Johnson County, south of Fort Worth and well south of the core area of Barnett Shale production. To date, it has drilled and completed 15 horizontal wells in Johnson County, and has another five horizontal wells in the completion stage. Results have been heartening: this year, EOG will produce an average of between 7- and 10 million cubic feet of gas per day from its Barnett properties, and it expects to exit 2004 with a rate of 30- to 45 million per day. The company notes that its production is presently constrained, as the existing pipeline grid is overwhelmed by the new gas coming onstream, although the situation should be resolved shortly. EOG has acquired 258,000 acres in the expansion area of the Barnett play, with about 90,000 of those in Johnson County… The Barnett Barrels Along, December 29, 2003 Years after successful drilling began in the prolific Barnett Shale, operators continue to increase activity and expand to new counties. Production from the play has been rocketing upward-some 2,210 wells are making approximately 800 million cubic feet equivalent of gas per day from the tight black shale. Technology has always been crucial to the Barnett play, as it is in most unconventional natural gas reservoirs. Unquestionably, that technology is still evolving. From its early days, the play has progressed from an emphasis on vertical drilling, cementing, fracturing and refracturing, to the present use of horizontal drilling and completion methods and 3-D seismic. Horizontal wells are the new focus for Barnett players. At press time, operators had filed 105 horizontal permits in 2003, a dramatic jump from the seven such permits requested in 2002 and three in 2001. Devon Energy Corp. has been the driving force in this effort. The Oklahoma City-based company drilled seven horizontal wells in the Barnett play in 2002, and has already drilled 43 of a total of 70 such wells planned for this year. "We have drilled 50 horizontal wells and 34 of those are on production at this time, making 51 million cubic feet of gas per day," says Brad Foster, vice president and general manager, central division. The interest in horizontal drilling is driven by the search to find new ways to exploit the Barnett, particularly in areas outside of the developed core. Core development The heart of the play is in southeastern Wise, southwestern Denton and northern Tarrant counties, Texas. It sits just north of, and overlaps into, the Fort Worth metropolitan area…

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Hart’s Activity Highlights 1

Chesapeake Operating Inc. - 10/01/09 Another Delaware Basin well was completed in Toyah Northwest Field, in Reeves County (RRC Dist. 8), Texas, by Chesapeake Operating Inc. The operator’s #1H Darden State 71-26 tested 6.13 million cu. ft. of gas, 13 bbl. of 59.7-degree condensate and 512 bbl. of water daily. Commingled zones in the horizontal well are 10,259-10,311 ft. in Morrow, 10,458-10,667 ft. in Barnett shale and 11,233-15,735 ft. in Woodford. The well was acidized and fracture-stimulated. With a 27/64-in. choke, the flowing pressure was 2,000 psi and the shut-in casing pressure was 4,295 psi. Absolute openflow was calculated at 7.98 million cu. ft. per day. The new producer was drilled to 15,850 ft. in Section 26, Block 71, PSL Survey, A-5427. Log tops include Wolfcamp at 9,030 ft., Morrow at 9,950 ft., Barnett at 10,458 ft. and Woodford at 11,040 ft.

2 EOG Resources Inc. - 10/01/09 On the northern flank of the Fort Worth Basin, a horizontal Barnett shale well was completed in the Montague County (RRC Dist. 9), Texas, portion of Newark East Field. EOG Resources’ #1H Bowen A Unit had an initial daily potential of 442 bbl. of crude, 1.17 million cu. ft. gas, and 629 bbl. of water through acid- and fracture-stimulated perforations at 9,000-12,619 ft. Located in the Washington Edwards Survey, A-227, the well’s total depth was 12,740 ft., 7,793 true vertical, with a bottomhole location to the northwest beneath the Richard Blaney Survey, A-64. EOG headquarters are in Houston.

3 Roil Mineral & Land Co. - 09/01/09 A Barnett shale producer was reported by Roil Mineral & Land Co. in Bellevue Field, Montague County (RRC Dist. 9), Texas. The Dallas-based operator tested #1 Clark flowing 67 bbl. of 45-degree oil, 141,000 cu. ft. of gas, and 60 bbl. of water per day from acid- and fracture-treated perforations at 6,540-6,720 ft. in the Barnett. Flowing tubing pressure was 155 psi on an 18/64-in. choke and the well was drilled to 7,291 ft. on a 77-acre lease in Section 2837, TE&L Co Survey, A-775. Log tops include Barnett shale at 6,470 ft., Viola at 6,745 ft. and Ellenburger at 6,920 ft.

4 EOG Resources Inc. - 09/01/09 EOG Resources of Houston completed a vertical Barnett shale well in southwestern Cooke County (RRC Dist. 9), Texas. The #1 Stephenson was tested for an initial daily potential of 58 bbl. of 42.5-degree oil, 203,000 cu. ft. of gas and 4 bbl. of water through acid- and fracture- stimulated perforations at 8,734-86 ft. The 9,300-ft. well is on a 341.27-acre Fort Worth Basin lease in Section 18, SP RR Co. Survey, A-1611. IHS Inc. reports log tops for Atoka at 5,770 ft., Caddo at 7,065 ft. and Barnett shale at 7,885 ft.

5 Rubicon Oil & Gas LLC - 08/01/09 According to IHS Inc., Rubicon Oil & Gas LLC of Midland has extended Rock Tank Field, a Pennsylvanian gas reservoir in southwestern Eddy County, N.M. Gas flowed from the #1 Dark Canyon 19 Federal well at the daily rate of 2.64 million cu. ft., with 815 bbl. of water. The Delaware Basin well was tested through commingled acid- and fracture-treated perforations at 10,146-56 ft. in Upper Morrow; 10,252-10,404 ft. in Middle Morrow; 10,543-52 ft. in Lower Morrow; and 10,751-54 ft. in “Silty” Barnett. Flowing tubing pressure was 685 psi on a 32/64-in. choke. The well was directionally drilled to 10,850 ft. in Section 24-23s-24e. Log tops include the Atoka at 9,858 ft. and Morrow at 10,140 ft.

6 EOG Resources Inc. - 06/01/09 A horizontal Barnett shale oil producer has been completed by EOG Resources Inc. of Houston in Montague County (RRC Dist. 9), Texas, on the north flank of the Fort Worth Basin. The #1H Seibold, R.L. Steelman Survey, A-1324, was tested for an initial daily potential of 281 bbl. of 38.3-degree-gravity oil, 102,000 cu. ft. of gas and 528 bbl. of water through acid- and fracture-stimulated perforations at 8,199-12,106 ft. The total depth is 12,215 ft., and true vertical depth is 8,372 ft. The top of the Barnett shale was logged at 7,465 ft. This year, the company plans to drill 60 wells in this part of the Barnett play, which features a combination of oil and liquids-rich gas.

7 EOG Resources Inc. - 12/01/08 A Fort Worth Basin horizontal Barnett shale well was completed in the western Montague County, Texas (RRC Dist. 9), portion of Newark East Field. EOG Resources Inc. tested #1H Bowen Unit with initial daily flows of 197 bbl. of 44-degree oil, 265,000 cu. ft. of gas and 364 bbl. of water. EOG acid- and fracture-stimulated perforations at 8,290-11,810 ft. and gauged flowing tubing pressure at 110 psi on a 1-in. choke. The #1H Bowen Unit was drilled to a total depth of 11,926 ft. in the Washington Edwards Survey, A-227. Top of the Barnett shale was logged at 7,972 ft. At a nearby location, EOG is currently active at #1 Seibold in the R.L. Steelman Survey, A-1324. EOG Resources has headquarters in Houston.

8 Wynn-Crosby Operating LP - 07/01/08 Plano, Texas-based Wynn-Crosby Operating LP has completed its #1 Jimmie Steadham in Cooke County, Texas (RRC District 9). The vertical Barnett shale producer is in the southwestern portion of Newark East Field. The well had an initial daily potential of 102 bbl. of 42-gravity oil, 60,000 cu. ft. of gas and 360 bbl. of water. The new venture reached a total depth of 8,423 ft. on a 60-acre lease in the BBB&C RR Co. Survey, A-158, approximately 0.75 mile east of the Montage County line.

9 Aspect Energy LLC - 06/01/08 Denver-based Aspect Energy LLC has reached total depth at its #1H Robert Greer et al. along the Ouachita Fold Belt just south of the Fort Worth Basin. The 9,500-ft. venture was drilled in the C.M. Hubby Survey, A-445 (RRC District 6). The nearest previous drilling is approximately a mile southeast in the Thomas H. Barron Survey, A-129. The #1 V.W. Cooper was abandoned in 1933 at a total depth of 438 ft. The first Barnett shale test permitted in McLennan County is about eight miles northeast of the current drillsite. The nearest recovery to the current well is more than eight miles southeast in Bosque South Field. This Walnut reservoir has yielded 231,289 bbl. of crude, 4.67 million cu. ft. of gas and 5,437 bbl. of water since 1930.

10 Chesapeake Operating Inc. - 05/01/08 The #1 Leoncita State 11-10 is staked near the southwestern edge of the Delaware Basin in Jeff Davis County (RRC 8), Texas. This is Chesapeake Operating Inc.'s second remote wildcat in the area. The 11,520-ft. wildcat is in Section 10, Block 11, GH&SA RR Co. Survey, A-1840, about 20 miles northeast of Fort Davis. Apparent targets are Barnett and Woodford shales. Chesapeake also drilled its #781 McKnight 11 more than five miles northwest. There has been no commercial production in Jeff Davis County to date. However, #1H Rawhide was drilled another 20 miles northwest in 2006. It is scheduled to be completed as a Barnett shale producer in Golden Corral Field. Also in RRC 8, Chesapeake has scheduled a remote Reeves County wildcat about eight miles southeast of Balmorhea, Texas. Plans call for the well to be drilled to 14,000 ft. to target

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Woodford shale below 10,000 ft. as part of Balmorhea Field. Nearest recovery is 12 miles northeast, where #134 Johnson was completed in mid-2005 flowing 141,000 cu. ft. of gas a day. As part of Balmorhea Field, the well produced a cumulative 5.36 million cu. ft. of gas and 387 bbl. of condensate, reports IHS Inc.

HART’s A&D For more detailed information see Hart’s A&D site at: http://www.a-dcenter.com/

State/Province

Est. Value ($MM) Buyer/Surviving Entity

Seller/Acquired or Merged Entity

Announce Date

Close Date

TX USD 0 Friendly Energy Exploration Undisclosed 2009.09.30 2009.09.30

TX,OK,MT, ND USD 230 SandRidge Energy Inc. Crusader Energy Group Inc. 2009.09.23

TX USD 4.2 Friendly Energy Exploration Undisclosed 2009.08.25

PA,WVA, MD USD 411 Enerplus Resources Fund Chief Oil & Gas LLC 2009.08.20 2009.09.01

Tug Hill Inc.

TX USD 371 Undisclosed Chesapeake Energy Corp. 2009.08.03

TX USD 0 EGPI Firecreek Inc. Whitt Oil and Gas Inc. 2009.08.01

TX USD 0 EOG Resources Inc. Universal Property Development and Acquisition Corp.

2009.05.26

TX USD 280 ENI SpA Quicksilver Resources Inc. 2009.05.18 2009.06.19

TX USD 30.4 Dorchester Minerals LP Tiggator Inc. 2009.05.18 2009.06.30

TRB Minerals LP

West Fork Partners LP

TX USD 259.8

Talon Oil & Gas LLC Denbury Resources Inc. 2009.05.13 2009.07.06

TX USD 0.336

Exterra Energy Inc. Undisclosed 2009.04.27

TX USD 0 Chesapeake Energy Corp. Parallel Petroleum Corp. 2009.02.12 2009.02.12

USD 3.17 Capital City Energy Group Inc.

Undisclosed 2008.12.17 2008.12.17

TX USD 1.275

Mexco Energy Corp. Undisclosed 2008.10.17 2008.10.17

TX USD 0 Chesapeake Energy Corp. Harding Energy Partners LLC, DDJet Ltd. LLP

2008.10.03 2008.10.03

TX USD 15.2 Mining Oil Co., MSB Energy Inc.

Reichmann Petroleum Corp. 2008.10.03 2008.10.03

TX TX TX USD 0 Vortex Resources Corp. Sandhaven Securities Ltd., NT Energy, Blackhawk Investments Ltd.

2008.09.04

TX USD 201 Denbury Resources Inc. Venoco Inc. 2008.09.02 2009.02.02

USD 31.8 Pioneer Natural Resources Co.

Dune Energy Inc. 2008.09.01 2008.08.01

USD 36 Cinco County Barnett Shale LLC

DDjet Ltd. LLP, Barnett Petrosearch LLC, Petrosearch Energy Corp.

2008.08.01 2008.07.01

USD 956 Crusader Energy Group Westside Energy Corp. 2008.08.01 2008.06.01

USD 800 XTO Energy Inc. Undisclosed 2008.07.22

TX TX USD 1270

Quicksilver Resources Inc. Chief Resources LLC, Hillwood Oil & Gas LP, Collins and Young LLC

2008.07.07 2008.08.08

BC CAD 0 EnCana Corp. Undisclosed 2008.07.01 2008.07.01

TX USD 62.1 Complete Production Services Inc.

Frac Source Services Inc. 2008.06.01 2008.06.01

USD 1.85 Mexco Energy Corp. Undisclosed 2008.04.22 2008.04.22

USD 550 XTO Energy Inc. Undisclosed 2008.03.01 2007.12.01

USD 150 Pioneer Natural Resources Co.

Undisclosed 2008.03.01 2007.12.01

UNG Report November 2009 Copyright 2009 Hart Energy Publishing

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USD 5 Westside Energy Corp. Undisclosed 2008.03.01 2007.09.01

USD 0 Chesapeake Energy Corp. Four Seven Resources Co. Ltd., Sinclair Oil & Gas Co., Sinclair Oil Corp.

2008.03.01 2007.07.01

TX USD 0 Chesapeake Energy Corp. Western Production Co. 2008.03.01 2008.01.01

USD 0 Chesapeake Energy Corp. Paloma Barnett LLC 2008.01.09

USD 31 Undisclosed Crimson Exploration Inc. 2008.01.08

TX, NM, CO USD 1530

Occidental Petroleum Corp. Plains Exploration & Production Co. 2007.12.17 2008.03.03

New Mexico TX USD 199 XTO Energy Inc. Plains Exploration & Production Co. 2007.12.17 2008.03.03

TX USD 284 Range Resources Corp. DTE Energy, Adexco Petroleum Co. 2007.12.09 2008.01.16

USD 0 Clayton Williams Energy Inc., GE Energy Financial Services

Western Production Co. 2007.11.05

BC,AB USD 540 Taqa North Ltd. Pioneer Natural Resources Canada Inc.

2007.10.01 2008.01.01

Abu Dhabi National Energy Co. PJSC

Pioneer Natural Resources Co.

USD 0 Stallion Oilfield Services Ltd. Patriot Liquid Services, Bayou Tank Services, Salty’s Well Services Ltd.

2007.08.01 2007.08.01

TX USD 35.5 Pioneer Natural Resources USA Inc.

Maverick Oil and Gas Inc., RBE Inc. 2007.04.01 2007.04.01

USD 255 Trican Well Service Ltd. Liberty Pressure Pumpling 2007.03.03 2007.03.03

USD 660 Chesapeake Energy Corp. Undisclosed 2007.03.01 2006.10.01

USD 189 Chesapeake Energy Corp. Dallas/Fort Worth International Airport

2007.03.01 2006.08.01

USD 105 XTO Energy Inc. Peak Energy Resources Inc. 2007.03.01 2006.08.01

USD 0 Tim Morris FMI Inc. 2007.01.01 2007.01.01

USD 209 Complete Production Services Inc.

Pumpco Services Inc. 2006.11.01 2006.11.01

USD 0 Southern California Public Power Authority

Collins & Young Holdings LP 2006.10.01 2006.10.01

Turlock Irrigation District

TX USD 2200

Devon Energy Corp. Chief Holdings LLC 2006.06.01 2006.06.01

USD 410 Chesapeake Energy Corp. Hallwood Energy III LP et al 2006.03.01 2005.09.01

TX USD 796 Chesapeake Energy Corp. Undisclosed 2006.02.01 2006.02.01

USD 292 Chesapeake Energy Corp. Hallwood Energy Corp. 2005.04.01 2004.12.01

TX USD 903 XTO Energy Inc. Antero Resources Corp. 2005.04.01 2005.04.01

USD 8.2 Corrizo Oil & Gas Inc. Undisclosed 2004.10.01 2004.03.01

USD 0 RBE LLC ConocoPhillips 2004.10.01 2004.10.01

TX USD 13.3 XTO Energy Corp. Undisclosed 2004.09.01 2004.09.01

TX USD 0 Bend Arch Petroleum Inc. Undisclosed 2004.09.01 2004.09.01

TX USD 10 Delta Petroleum Corp. JAED Production Co. Inc. 2003.06.01 2003.06.01

TX USD 0 F10 Oil & Gas Properties Undisclosed 2003.03.01 2003.03.01

USD 148 Progress Fuels Corp. Republic Energy Inc. et al. 2003.02.01 2003.02.01

TX USD 0 The TX Municipal Gas Corp. EnRe LP 2001.06.01 2001.06.01

TX USD 3.8 Denbury Resources Inc. Undisclosed 2001.04.01 2001.04.01

TX, NM, UT, CO

USD 483 Apollo Global Management LLC

Parallel Petroleum Corp. 2009.09.15

UNG Report November 2009 Copyright 2009 Hart Energy Publishing

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STATISTICS Newark East Field (Barnett Shale) January 1, 2009-November 1, 2009 http://webapps.rrc.state.tx.us/PDQ/changePageViewAction.do?pagesize=500

Operator Name

Oil (BBL) GW Gas (MCF)

Operator Name

Oil (BBL) GW Gas (MCF)

Abernathy Auto, Inc. 0 0

Mccutchin Petroleum Corporation 51 326,272

Adexco Operating Company 0 61,600

Merit Energy Company 2,103 1,977,811

Adkins, R. L. Corp. 469 707,339

Merritt Operating, Inc. 1,272 0

Ag Operating Company Llc 0 0

Mesa Operating, Llc 0 0

Ammo Energy, Llc 0 0

Mesquite Swd Inc 0 0

Anderson, E. D. 0 0

Metro Saltwater Disposal, Inc. 0 0

Arrington,David H. Oil & Gas,Inc 0 2,068,714

Miller Operating Company Llc 0 17,230

Arrowhead Productions, Lp 0 58,564

Mks Natural Gas Company 0 439

Aruba Petroleum, Inc. 67,425 1,750,919

Modern Exploration, Inc. 0 0

Aspect Energy, Llc 0 132,280

Moncrief, C. B. 0 977,336

Athena Resources, Inc. 0 0

Nabors Well Services Ltd. 0 0

Bagby Energy Llc 0 1,967,285

Nautilus Exploration, Inc. 0 141,105

Barnes Oil & Gas Llc 15,424 0

Newark Energy Llc 0 961,113

Barnett Enviro Mgmt Svcs, Llc 0 0

Nortex Energy, Inc. 534 0

Basa Resources, Inc. 0 0

North Texas Llano Operating Corp 0 0

Basal Corporation 0 0

Oak Hills Drilling & Oper., Llc 0 0

Bend Petroleum Corp. 0 107,161

Ops Group Limited 0 112,977

Best Petroleum Explorations,Inc. 0 134,139

P. L. O. 0 157,365

Blackwater Oil & Gas Corporation 0 14,608

Panamerican Operating Inc 0 28,081

Borderline Operating Corp. 0 14,851

Paragon Exploration, Inc. 0 0

Bosque Disposal Systems, Llc 0 0

Pdc-Wv-Co Corporation 0 474,900

Bowerman Exploration, Inc. 0 0

Peak Flow Operating&Drilling Lp 5,109 22,863

Bowerman Investments Inc. 0 0

Peba Oil & Gas Co. 5,314 5,204

Bp Operating Company, Llc 0 168,810

Petroquest Energy, L.L.C. 0 83,497

Braden Exploration, Llc 3,964 1,569,093

Phillips, Bob 0 0

Briar Energy Corporation 0 9,693

Pinnergy, Ltd. 0 0

Bridgeport Tank Trucks, L.L.C. 0 0

Pioneer Exploration, Llc 167 0

Burk Royalty Co., Ltd. 334 17,232

Pioneer Natural Res. Usa, Inc. 1,167 4,100,499

Burlington Resources O & G Co Lp 0 30,003,900

Pitcock, Inc. 0 2,783

Burnett Oil Co., Inc. 0 5,186,345

Premier Minerals, Inc. 0 105,425

Cal-Tex Fossil, L.L.C. 0 103,656

Primexx Operating Corporation 0 481,162

Calame Oil Co. 0 0

Proco Operating Co., Inc. 1,339 22,019

Canan Operating, Inc. 3,702 13,352

Proven Reserves Management, Inc. 0 16,866

Carrizo Oil & Gas, Inc. 0 25,227,707

Quicksilver Resources Inc. 0 71,078,609

Ccs Midstream Services, Llc 0 0

R.P.Wilson, Inc. 1,219 0

Cd Consulting & Operating Co. 0 3,455

Radius Operating, Llc 0 0

Cdx Gas, Llc 0 730,204

Ram Operating Company, Inc. 0 0

Central Basin Oil Inv. Inc. 0 0

Range Production Company 913 37,979,543

Century Petroleum, Inc. 0 55,450

Raven Operating Group, Inc. 4,401 30,683

Ces Swd Texas, Inc. 0 0

Raylee Operating Company 0 31,595

Chaparral Energy, L.L.C. 0 0

Red Oak Gas Operating Company Lp 0 1,191,884

Chesapeake Operating, Inc. 0 235,015,060

Reichmann Petroleum Corp. 0 19,110

Chief Oil & Gas Llc 0 207,281

Remuda Operating Company 53 0

Chief Operating Llc 0 0

Republic Energy Inc. 0 0

Citrus Energy Corporation 10,690 555,618

Republic Energy Operating, Llc 0 525,795

Collins & Young Oper, L.L.C. 0 0

Richey, Ray Management Co., Inc. 0 2,063,215

Colo Exploration Company, Inc. 0 53,078

Rife Energy Operating, Inc. 24,426 281,097

Cooper Oil & Gas, Inc. 0 6,813

Rimrock Energy, Llc 0 2,257,742

Cornerstone E & P Company, Lp 0 2,157,423

Rodeo H20 Disposal, Lp 0 0

Crow Creek Operating Co Ii Llc 0 1,206,935

Rogers Drilling Co. 0 0

Crown Equipment Co. 824 1,180,595

Roil Mineral & Land Co. 159 51,319

Crusader Energy Group Inc. 49,402 1,078,606

Ropa Exploration Corp. 0 100,472

Cumming Company, Inc. The 1,319 115,755

Routh Operating, Llc 0 1,267,757

D.J. Pulling, P.C. 0 0

Royalco Oil & Gas Corporation 0 0

Dale Operating Company 0 0

Ryder Scott Management, Llc 0 1,403,743

Dallas Production, Inc. 1,499 161,309

S.B. Street Operating, Inc. 97 0

Dart Oil & Gas Corporation 0 113,021

Saint Jo Long Shot, Inc. 0 0

Ddjb Services Gp Llc 0 0

Salty's Disposal Wells, Lp 0 0

Denbury Onshore, Llc 0 22,003,969

Sanders Oil & Gas, Ltd. 0 29,369

UNG Report November 2009 Copyright 2009 Hart Energy Publishing

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Newark East Field (Barnett Shale) January 1, 2009-November 1, 2009 Continued . . . .

Operator Name Oil (BBL) GW Gas (MCF)

Operator Name Oil (BBL) GW Gas (MCF)

Devon Energy Production Co, L.P. 7,325 347,798,460

Shidler, Mark L., Inc. 0 22,978

Dogwood Operating Company, Inc. 0 283,892

Silver Creek Mat Swd Well, L.P. 0 0

Dte Gas Resources, Llc 0 3,672,740

Sky Resources, Inc. 0 10,941

Dyersdale Energy, L.P. 0 0

Skybridge Energy Llc 0 0

Eagle Oil & Gas Co. 0 127,452

Slate Holdings, Inc. 0 0

Eagleridge Operating, Llc 0 161,448

Smith Pipe Of Abilene 0 0

Echo Production, Inc. 36 1,682

Spindletop Oil & Gas Company 0 794,315

Encana Oil & Gas(Usa) Inc. 60,146 51,169,363

Square One Energy, Inc. 0 0

Endeavor Energy Resources L.P. 5,518 2,604,385

Star Of Texas Energy Srvs, Inc. 0 0

Enervest Operating, L.L.C. 0 171,151

Strata Operating, Inc. 0 413,858

Enexco, Inc. 14,387 0

Sundance Resources, Inc. 0 155,641

Eog Resources, Inc. 624,101 141,939,588

Swan Oilfield Services, Lp 0 0

Exit Oil & Gas 0 19,008

Swan Production Co. 28,525 0

Expro Engineering, Inc. 0 0

Swsi Fluids, Llc 0 0

Fairmount Operating Llc 8,784 0

Talon Oil & Gas Llc 0 0

Fairway Resources Operating, Llc 0 592,621

Tanglewood Oil & Gas Llc 0 676,441

Felderhoff Production Company 0 20,728

Tarpon Oil & Gas Co. 0 0

Fenoglio Oil Company 0 0

Tega Operating Co. 1,678 0

Finley Resources, Inc. 0 913,032

Tejas Western Corp. 0 25,160

Forest Oil Corporation 0 821,310

Teleo Operating, Llc 2,413 161,086

Foxborough Energy Company, Llc 0 0

Tema Oil And Gas Company 1,212 1,463,314

Frost Brothers Resources, Lllp 0 358,318

Terax Energy, Inc. 0 0

G & F Oil, Inc. 0 2,767

Texakoma Operating, L.P. 0 0

Giant Nrg Co., Lp 0 62,408

Texas Star Disposals, L.L.C. 0 0

Grand Operating, Inc. 0 1,627,734

Texas Transco Inc 0 0

Gsi Oil & Gas, Inc. 0 0

Texas United Prod. Co., L.L.C. 1,100 0

Gulftex Operating Inc 0 0

Texland Petroleum, L.P. 54 0

Halek Energy L.L.C. 0 10,019

Thompson, J. Cleo 0 179,149

Harding Company 0 818,254

Threshold Development Company 0 42,493

Hebco Exploration, Inc. 0 0

Titan Energy, Inc. 0 3,718

Hep Oil Gp, Llc 0 241,709

Triad Exploration, Ltd. 0 67,742

Hess, Jerry Operating Co. 15,968 309,059

Trio Consulting & Management,Llc 128 1,930,530

Hill Operating Llc 0 0

Tsar Operating Company 0 1,200,199

Hillwood Energy Texas, L.P. 0 14,950

Tx H&H Oil Co. #1, Llc 0 0

Hopco, Incorporated 0 0

Upda Operators, Inc. 0 0

Hunter Energy, Inc. 0 2,141

Upham Oil & Gas Company 6,548 202,029

Hydro-Fx, Inc. 0 0

Uptex Operating, L.P. 0 0

Infinity Oil & Gas Of Tx, Inc. 0 0

Vantage Fort Worth Energy Llc 1,040 2,224,395

Initial Energy Services, Llc 0 0

Vargas Energy, Ltd. 0 38,714

Iwoc, Inc. 0 0

Vicars Mineral Ventures, Llc 61 0

J & M Swd, Llc 0 0

Victory Eagle Utility Sv Y, Inc. 0 195,145

J-W Operating Co. 0 17,215,274

Warnock Operating Company, Llc 145 0

Janlo Operating 0 0

Wec, Inc. 0 0

Jay Management Company, Llc 0 0

West Fork Disposal Llc 0 0

Joint Resources Company 228,332 0

Western Chief Operating, L.L.C. 0 2,310,254

Jrj Oil & Gas Llc 0 2,301

Western Production Company 0 1,925,172

K&C Pump Truck, Llc 0 0

Wg Operating, Inc. 76 77,867

Kec Enterprises, Inc. 0 29,123

Williams Prod. Gulf Coast, L.P. 0 26,810,170

Kornye-Tillman Company 0 35,512

Willowbend Investments, Inc. 0 482,936

Krocan Energy Corporation 0 13,993

Wise Exploration 0 4,563

L A Productions 0 9,806

Wolsey Well Service, L.P. 0 247,879

Lakota Energy, Ltd. 0 2,304,675

Wynn-Crosby Operating, Ltd. 16,895 363,131

Llewellin Operating Company, Llc 0 44,507

Xr-5, Llc 0 0

London Petroleum Corporation 0 9,380

Xto Energy Inc. 7,338 209,736,669

Luxor Oil & Gas, Inc. 0 38,926 Total 1,235,186 1,288,169,458

UNG Report November 2009 Copyright 2009 Hart Energy Publishing

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Field NEWARK, EAST (BARNETT SHALE)

Field NEWARK, EAST (BARNETT SHALE) Annual Totals, Jan 1993 - Dec 2009

Monthly Totals, Jan 2009 - Dec 2009

Date Oil (BBL) GW Gas (MCF)

Date Oil (BBL) GW Gas (MCF)

1993 0 10,791,643

Jan-09 147,170 152,207,949 1994 0 14,005,415

Feb-09 131,839 140,863,040

1995 0 19,665,947

Mar-09 143,979 156,280,420 1996 0 25,558,493

Apr-09 131,135 149,204,340

1997 0 28,448,496

May-09 146,702 150,521,643 1998 0 34,311,286

Jun-09 145,221 140,867,956

1999 0 40,876,191

Jul-09 144,618 139,043,136 2000 0 79,068,082

Aug-09 108,735 133,413,141

2001 4,524 134,562,355

Sep-09 135,787 125,767,833 2002 15,484 220,571,293

Oct-09 0 0

2003 37,705 304,080,052

Nov-09 0 0 2004 88,392 379,916,148

Dec-09 0 0

2005 154,824 502,540,267

Total 1,235,186 1,288,169,458 2006 317,392 714,289,175

2007 751,043 1,096,049,990 2008 1,557,826 1,597,037,416 2009 1,235,186 1,288,169,458 Total 4,162,376 6,489,941,707

SELECTED REFERENCES BARNETT SHALE Abilene Geologic Society, 1949, 4 Cross Sections: West Central Texas-in Penn Systems Field Trip guidebook-2 Surveys, Abilene Geological Society-Guidebook Nov 1949. Abilene Geologic Society, 1958, 3 Block Diagrams: The Time Rock Units of West Central Texas, Abilene Geological Society-Guidebook Nov 1949. Adams J.E., 1954, Mid-Paleozoic Paleogeography of Central Texas, Shale Shaker, v.4 , no.6 p.4-9. Adams, C., 2003, Barnett Shale: A Significant Gas Resource in the Fort Worth Basin (ABS), AAPG. Airhart, M. Geology.com. The Barnett Shale Gas Boom: Igniting a Hunt for Unconventional Natural Gas Resources. http://geology.com/research/barnett-shale-gas.shtml. Accessed: September 2008. Ali, W., 2009, Lithofacies, depositional environment, burial history and calculation of organic richness from wireline logs: a study of the Barnett Shale in the Delaware Basin, Pecos Co., West Texas, and comparison with the Barnett Shale in the Fort Worth Basin: The University of Texas at Austin, Master’s thesis, 210 p Ali, W., and Gale, J., 2009, Characterization of the Barnett Shale, Permian basin, in Ruppel, S. C., Loucks, R. G., Hamlin, H. S., Nance, H., S., Gale, J., Fu, Q., Ali, W., Helbert, D., Applications of Cores to Permian Basin Reservoir Characterization A Core Workshop: Permian Basin SEPM, p. 20–21. Ali, W., and Gale, J., 2009, Barnett Shale, Permian Basin: Facies, Mineralogy, and Wireline Analysis:2008 Annual Meeting and Workshop, Austin, Texas, February. Ali, W., Gale, J. F. W., Ruppel, S. C. , and Loucks, R. G., 2008, Lithofacies, Depositional Environment and Burial History of the Barnett Shale in the Delaware Basin, Pecos Co. West Texas, and comparison with the Barnett Shale in the Fort Worth Basin: West Texas Geological Society Symposium, Midland, Texas, September. Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Geology, Wireline-Log Analysis, and Engineering, Short course and field trip: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, June 2007, Austin, TX. Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX), 2006. Barnett, Woodford, and Related Mudrock Successions in Texas Cores and Outcrops: A Core Workshop Prepared for the 2008 AAPG/SEPM Annual Convention, San Antonio, Texas, April 2008. Allard, 2000, Barnett Shale Play Hot in North Texas, September/October 2000 Landman.

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Cheney M.G. and Goss L.F., 1952, Tectonics of Central Texas, AAPG Bull v 35, p.2237-2265. Cheney M.G., 1929, History of the Carboniferous Sediments of the Mid Continent Oil Field, AAPG Bull v. 13 pp.557-594. Cheney M.G., 1929, Stratigraphic and Structural Studies in North Central Texas, BEG Bull 2913. Cheney M.G., 1940, Geology of the North Central Texas, AAPG Bull 24. p 65-118. Cheney M.G., 1945, Classification of Miss and Penn Rocks in North America, AAPG Bull 29, p. 125-169. Cipolla, C.L., 2009, Modeling production and evaluating fracture performance in unconventional gas reservoir, JPT. Journal of Petroleum Technology, 61(9), p.84-90. Clark, F.T. and Bybee, H.H., 1951, Fort Worth Basin and Muenster Arch, AAPG Bull v. 35 p.353-356. Cleaves, A.W. 1982, Upper Strawn Depositional Systems of North Central Texas in C.A. Martin, Dallas Geological Society. Cloud, Barnes and Hass, 1995, Devonian-Mississippian Transition in Central Texas, GSA Vol. 68 pp807-816. Cluff, R., 2006, Barnett Shale-Woodford Shale play of the Delaware Basin; is it another giant shale gas field in Texas? CSPG Annual Convention, Vol.2006; 2006 CSPG-CSEG-CWLS joint conference; What's next? Where is our industry heading?, Calgary, AB, Canada, May 15-18, 2006. Cluff, R.M., 2006, Barnett Shale-Woodford Shale play of the Delaware Basin; is it another giant shale gas field in Texas? West Texas Geological Society, Vol.06-117, p.28-29; West Texas Geological Society 2006 fall symposium; Resource plays in the Permian Basin; resource to reserves, Midland, TX, Oct. 25-27, 2006. Conway, M.W.; Salter, G.; Miller, R.S.; Hall, C., 2008, Abstract: choosing drilling, completion, and stimulation fluids for shale gas completions, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Coulter, G.R.; Gross, B.C.; Benton, E.G.; Thomson, C.L., 2006, Barnett Shale Hybrid Fracs--One Operator's Design, Application, and Results, SPE 1020263. Coulter, Gerald R.; Benton, Edward G.; Thomson, Clifford L., 2004, Water Fracs and Sand Quantity: A Barnett Shale Example, SPE 90891. Curtis J.B., 2002, Fractured Shale Gas Systems, AAPG Bull v 86 pp 1921-1938. Daniels, J.; Waters, G.; LeCalvez, J.; Lassek, J.; Bentley, D., 2007, Contacting More of the Barnett Shale Through an Integration of Real-Time Microseismic Monitoring, Petrophysics, and Hydraulic Fracture Design, SPE 110562. Davis, M.K.; Evensen, J., 2007, Formation water signatures of the ft worth basin relevant to gas production from Barnett shale, Geological Society of America, 39(6), p.463; Geological Society of America, 2007 annual meeting, Denver, CO, Oct. 28-31, 2007. AAPG Explorer, 28(9), p.48-49. Day-Stirrat, R.J.; Loucks, R.G.; Milliken, K.L.; van der Pluijm, B.A., 2008, Mississippian Barnett Shale; characterization and concretions, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Day-Stirrat, R. J., Loucks, R. G., Milliken, K. L., Hiller, S., and van der Pluijm, B. E., 2008, Phyllosilicate orientation as evidence for early timing of calcite cemented concretions in the Barnett Shale (Late Mississippian), Fort Worth Basin, Texas (U.S.A): Sedimentary Geology, v. 208, p. 27–35. Denney, D. (editor), 2009, Evaluating implications of hydraulic fracturing in shale-gas reservoirs, JPT. Journal of Petroleum Technology, 61(8), p.53-54. Devon Energy, 2003, The Barnett Shale: Regional Report: online presentation available at www.devon.com, Devon Energy. Douglas, D. Anger over road damage caused by Barnett Shale development. http://www.wfaa.com/sharedcontent/dws/wfaa/latestnews/stories/wfaa080822_lj_douglas.18a895d.html. Accessed: October 2008. Du, C.; Zhang, X.; Melton, B.; Fullilove, D.; Suliman, B; Gowelly, S.; Grant, C.; LeCalvez, J., 2009, A Workflow for Integrated Barnett Shale Gas Reservoir Modeling and Simulation, SPE 1222934. Durham, L.S., 2009, Haynesville vs. Barnett; is my shale better than your shale? AAPG Explorer, 30(9), p.14, 16. Ehlmann, R.J., 1982, La Pan Field-Clay County, Texas, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. EJennings, Drew; Felderhoff, Floyd; Isbell, Matt; Christensen, Hughes; Kramer, Mark; Pierce, Eddie; Roberts, Geoff; Paugh, Wesley, 2007, levated Activity Levels Driving Technology Development at Record Pace: Barnett Shale, North Texas, SPE 109636.

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Elmer, William G.; Elmer, Stuart J.; Elmer, Thomas E., 2009, New Single Well Standalone Gas Lift Process Facilitates Barnett Shale Fracture Treatment Flowback, SPE 118876. Evanoff, Bill, 1957, The Bend Arch: in Lower Penn and Miss Rocks of NE Llano Uplift, Abilene and Fort Worth Geological Societies: Joint Field Trip Guidebook. Ewing, J., 2008. Devon Energy Corp. Taking a Proactive Approach to Water Recycling in the Barnett Shale. Presented at the Fort Worth Business Press Barnett Shale Symposium. February 29, 2008. Fisher, M.K., C.A. Wright, B.M. Davidson, 2002, Integrating Fracture Mapping Technologies to Optimize Stimulation in the Barnett Shale, Society of the Petroleum Engineers. Fisher, M.K.; Heinze, J.R.; Harris, C.D.; Davidson, B.M.; Wright, C.A.; Dunn, K.P., 2004, Optimizing Horizontal Completion Techniques in the Barnett Shale Using Microseismic Fracture Mapping, SPE 90051. Fisher, M.K.; Wright, C.A.; Davidson, B.M.; Goodwin, A.K.; Fielder, E.O.; Buckler, W.S.; Steinsberger, N.P., 2005, Integrating Fracture-Mapping Technologies To Improve Stimulations in the Barnett Shale, SPE 77441. Flippin, Jerel, 1982, Stratigraphy, Structure, and Economic Aspects of Paleozoic Strata in Earth Co, North Central TX, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Frantz, J.H. Jr.; Williamson, J.R.; Sawyer, W.K.; Johnston, D.; Waters, G.; Moore, L.P.; MacDonald, R.J.; Pearcy, M.; Ganpule, S.V. March, K.S., 2005, Evaluating Barnett Shale Production Performance Using an Integrated Approach, SPE 96917. Gale, J.F.; Holder, J., 2008, Natural fractures in shales: origins, characteristics and relevance for hydraulic fracture treatments, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Gale, J., 2009, Fracture characteristics of the Barnett Shale in the Permian basin, in Ruppel, S. C., Loucks, R. G., Hamlin, H. S., Nance, H., S., Gale, J., Fu, Q., Ali, W., Helbert, D., Applications of Cores to Permian Basin Reservoir Characterization A Core Workshop: Permian Basin SEPM, p. 22–23. Gale, J. F. W., Reed, R. M., and Holder, J., 2007, Natural fractures in the Barnett Shale and their importance for hydraulic fracture treatments: AAPG Bulletin, v. 91, p. 603–622. Gale, Julia F.W.; Holder, Jon; 2008, Natural fractures in the Barnett Shale: constraints on spatial organization and tensile strength with implications for hydraulic fracture treatment in shale-gas reservoirs, ARMA 08-096. Gas Research Institute, 1991, Formation Evaluation Technology for Production Enhancement: Log, Core Geochemical Analysis in the Barnett Shale, Gas Research Institute. Gee, David, 1976, Base of the Penn in the Fort Worth Basin-Some Regional Comparisons Above and Below, Abilene Geol Society , Geol Contributions. Geomap 1982, Stratigraphy Column Central Texas-Fort Worth Basin Dallas Geological Society. Giddens, Leslie, 1957, Subsurface Geology of Wise County, Texas, UT Masters Thesis. Gilmer, A., 2006, A West Texas "resource play"... productivity comparisons to the Barnett Shale, Fort Worth Basin, West Texas Geological Society, Vol.06-117, p.386-414; West Texas Geological Society 2006 fall symposium; Resource plays in the Permian Basin; resource to reserves, Midland, TX, Oct. 25-27, 2006. Goldstein, A. and Flawn, P.T., 1958, Oil and Gas Possibilities of Ouachita Structural Belt in Texas and Oklahoma, AAPG Bull v. 42. Grieser, B.; Shelley, B.; Johnson; Fielder, E.O.; Heinze, J.R.; Werline, J.R., 2006, Data Analysis of Barnett Shale Completions, SPE 100674. Grieser, Bill; Shelley, Blb; Soliman, Mohamed, 2009, Predicting Production Outcome From Multi-Stage, Horizontal Barnett Completions, SPE 120271. Hardage, B.A.,1996, Seismic Evidence of the Effects of Carbonate Karst Collapse on Overlying Clastic Stratigraphy and Reservoir Compartmentalization, Geophysics v.61, no.5 p.1336-1350. Henry, J.D., 1982, Stratigraphy of the Barnett Shale (Mississippian) and associated reefs in the northern Fort Worth Basin; in C.A. Martin, ed., Petroleum Geology of the Fort Worth Basin and Bend Arch Area: Dallas Geological Society, p. 157- 178. Hayden, J., and D. Pursell, D. 2005. Pickering Energy Partners Inc. The Barnett Shale. Visitor‟s Guide to the Hottest GasPlay in the US. October 2005.

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Henry, J. D., 1982, Stratigraphy of the Barnett Shale (Mississippian) and associated reefs in the northern Fort Worth Basin, in Martin, C. A., ed., Petroleum Geology of the Fort Worth Basin and Bend Arch Area: Dallas Geological Society, p. 157-178. Hentz, T.F.; Potter, E.C.; Adedeji, M.A., 2007, Reservoir-scale depositional facies, trends, and controls on sandstone distribution of the Lower Atoka Group ("Bend Conglomerate"), Fort Worth Basin, Texas, American Association of Petroleum Geologists, Vol.2007, p.113; AAPG 2007 annual convention & exhibition, Long Beach, CA, April 1-4, 2007. Herkomer and Denke, 1982, Stratigraphy and Hydrocarbons, Parker County, Texas, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Hill and Nelson, 2000, Barnett Shale Fort Worth Basin: An Overview and Update, Gas Tips, June 2000 (GRI.) Hill, D.G., C.R. Nelson, 2000, Gas Productive Fractured Shales- An Overview and Update, Gas Tips v.7, no.2 p.11-16. Holder, Dan, 200,1 Mid Continent Operators Test Dewatering Techniques, New Frac Technology, American Oil and Gas Reporter-August 2001. Holditch and Associate, 1991, History Match Analysis of Production and Well Test Data From Mitchell Energy's Stella Young 4 Well, GRI Contract 5086-213-1446. Irarte, R.S., 1972, Subsurface Geology of the Central part of the Fort Worth Basin, UT Masters Thesis. Janwadkar, S., 2008. Advanced horizontal technologies improve drilling performance in the Barnett Shale, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Janwadkar, S.S.; Fortenberry, D.G.; Roberts, G.K.; Kramer, M.; Trichel, D.K.; Rogers, T.; Privott, S.A.; Welch, B.; Isbell, M.R., 2006, BHA and Drillstring Modeling Maximizes Drilling Performance In Lateral Wells of Barnett Shale Gas Field of N. Texas, SPE 100589. Janwadkar, Sandeep; Morris, Stephen; Thomas, Mark; Jackson, Garrett; Roberts, Geoff; Fortenberry, David; Kramer, Mark; Dennie, Defin, 2008, Barnett Shale Drilling and Geological Complexities—Advanced Technologies Provide the Solution, SPE 112765. Jarvie, D.M. and L.L. Lundell, 1991, Hydrocarbon generation modeling of naturally and artificially matured Barnett shale, Ft. Worth Basin, Texas, Southwest Regional Geochemistry Meeting, Sept. 8-9, 1991, The Woodlands, Texas, 1991, oral presentation. Jarvie, D.M., 2001, Oil and Shale Gas from the Barnett Shale, Ft. Worth basin, Texas, AAPG Annual Meeting Program , v.10 p.A100. Jarvie, D.M., 2003, Evaluation of the Unconventional Natural Gas Prospects. Jarvie, D.M., 2006, Exploring for and producing shale gas; application of detailed geochemical data in ascertaining prospectivity and producibility, West Texas Geological Society, Vol.06-117, p.55-56; West Texas Geological Society 2006 fall symposium; Resource plays in the Permian Basin; resource to reserves, Midland, TX, Oct. 25-27, 2006. Jarvie, D.M.; Philp, R.P.; Jarvie, B.M., 2009, Unconventional shale-gas resource systems and processes affecting gas generation, retention, storage, and flow rates, European Geosciences Union general assembly 2009, Vienna, Austria, April 19-24, 2009. Jarvie, J., 2007, Geochemical Characteristics of Productive Unconventional Shales: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Geology, Wireline-Log Analysis, and Johnson, Dunn , et al, 1988, Qualifying Hydraulic Fracturing Effectiveness in Tight Naturally Fractured Reservoirs, SPE 49048. Johnson, K.; French, K.; Fichter, J.K.; Oden, R., 2008, Use Of Microbiocides in Barnett Shale Gas well Fracturing Fluids to Control Bacteria Related Problems, NACE 08658. Johnston, D., 2004, Barnett Shale-1: Technological advances expand potential play; Oil and Gas Journal, Jan. 19, 2004, vol. 102, no. 3, p. 51-59. Kane, J., 2006, Petrophysical Characterization of the Barnett: Annual Project Meeting and Workshop for 2005, Austin, Texas, February. Kane, J., 2006, Petrophysical Considerations with Regard to the Barnett Shale: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Kane, J., 2007, Petrophysical Comparison of Barnett and Woodford: 2006 Annual Meeting and Workshop, Austin, Texas, February. Kane, J., 2007, Petrophysical Considerations with Regard to the Barnett Shale: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Geology, Wireline-Log Analysis, and Karastathis, A.; Rai, C.; Sondergeld, C., 2008, Petrophysical properties of Barnett shale, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Ketter, A.A.; Heinze, J.R.; Daniels, J.L.; Waters, G., 2008, A Field Study in Optimizing Completion Strategies for Fracture Initiation in Barnett Shale Horizontal Wells, SPE 103232.

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Kier, Brown and McBride, 1980, Miss and Penn Systems in the United States, Ute Geol Cir 80-14. Kier, Dresser and McGee, 1980, Depositional History of the Marble Falls Fm of the Llano Region, West TX Geol Soc Pub 80-73. King, George E.; Haile, Luke; Shuss, Jin; Dobkins, Terrel A. 2008, Increasing Fracture Path Complexity and Controlling Downward Fracture Growth in the Barnett Shale, SPE 119896. Kinley, T.J.; Cook, C.W.; Breyer, J.A.; Jarvie, D.M.; Busbey, A.B., 2008, Hydrocarbon potential of the Barnett Shale (Mississippian), Delaware Basin, West Texas and southeastern New Mexico, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Kuuskra, V.; Stevens, S., 2008, Gas shale; 2, Lessons learned help optimize development, Oil & Gas Journal, 107(37), p.52-57. Kuuskraa, Koperna, et al, 1998, Barnett Shale rising star in Fort Worth Basin, OGJ May 25, 1998. Kuuskraa, Schmoker, and Dyman, 1998, Diverse Gas Plays Lurk in Gas Resources Pyramid, OGJ June 8, 1998. LaFollette, R.F.; Bowker, K.A.; Zhao, H.; Jarvie, D.M., 2008, The relationship of thermal maturity and structural geology to produced-gas composition in the Barnett shale, Fort Worth Basin, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Lahti and Huber, 1982, The Atoka Group (Penn) of the Boonsville Field Area, North Central Texas, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Lancaster, D.E.; Holditch, S.A.; McKetta, S.F.; Guidry, F.K.; Jochen, J.E., 1992, Reservoir Evaluation, Completion Techniques, and Recent Results From Barnett Shale Development in the Fort Worth Basin, SPE 24884. Lancaster, Holditch and Associates, et al, 1993, Reservoir Evaluation, Completion Techniques and Recent Results From Barnett Shale, SPE 24884. Lancaster, McKetta and Lowry, 1993, Research Findings Help Characterize Fort Worth Basin's Barnett Shale, OGJ March 8, 1993, pp 59-64. Larsen, L.M., 2007, Horizontal wells and the Barnett Shale play-borehole images provide a different perspective, American Association of Petroleum Geologists, Vol.2007, p.113; AAPG 2007 annual convention & exhibition, Long Beach, CA, April 1-4, 2007. Leonard R.; Woodroof, R.; Bullard, K.; Middlebrooks, M.; Wilson, R., 2007, Barnett Shale Completions: A Method for Assessing New Completion Strategies, SPE 110809. Lohoefer, D.; Athans, J.; Seale, R., 2006, New Barnett Shale Horizontal Completion Lowers Cost and Improves Efficiency, SPE 103046. Loucks, R. G., 2006, Barnett Shale-Gas Play of the Fort Worth Basin: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Loucks, R. G., 2006, Sedimentology and Depositional Setting of the Mississippian Barnett Shale, Wise County, Texas: South Central Meeting, Geological Society of America, March. Loucks, R. G., Reed, R. M., Ruppel, S. C., and Jarvie, D. M., 2009 (in press), Morphology, genesis, and distribution of nanometer-scale pores in siliceous mudstones of the Mississippian Barnett Shale: Journal of Sedimentary Research. Loucks, R. G., and Ruppel, S. C., 2007, Mississippian Barnett Shale: lithofacies and depositional setting of a deepwater shale-gas succession in the Fort Worth Basin, Texas: AAPG Bulletin, v. 91, p. 579–601. Loucks, R.G.; Ruppel, S.C., 2008, Shell and grain layers in the Barnett Shale; event deposition or in situ accumulations? AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Loucks, R.G.; Ruppel, S.C., 2008, The Barnett Shale of the southern Fort Worth Basin; comparison of depositional setting, lithofacies, and mineralogy with equivalent deposits in the northern basin, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Loucks, R., 2007, Lithofacies, Depositional Setting and Pore Network of the Barnett Formation: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Geology, Wireline-Log Analysis, and Engineering, Austin, Texas. Loucks, R., 2008, Overview of Barnett Shale and Associated Strata in the Fort Worth Basin, in Barnett, Woodford, and Related Mudrock Successions in Texas Cores and Outcrops: A Core Workshop Prepared for the 2008 AAPG/SEPM Annual Convention, San Antonio, Texas, April.

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McDonnell, A., 2006, Sag Structures in the Northern Fort Worth Basin: Origin and Influence on the Barnett Formation: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). McDonnell, A., 2007, Quantifying Paleocave Collapse from 3D-Seismic; Examples from the Texas Paleozoic: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Geology, Wireline-Log Analysis, and Engineering, Austin, Texas. Loucks, R.G., 2008, Introduction to Research on the Barnett Shale in the Fort Worth Basin: 2007 Annual Meeting and Workshop, Austin, Texas, February. Lovick, G.P., 1982, Atokan Clastics- Depositional Environments in a Foreland Basin, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Manger, W.L., and Sutherland , P.K., 2000, Sequence Stratigraphy and Reservoir Development, Marble Falls Limestone, Central Texas, Ok Geol Soc Circular 101 -Platform Carbonates in the southern Mid-continent. Martin, C.A., 1982, Street Field, Jack County Texas, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Martineau, D., 2003, Newark East, Barnett Shale Field, Wise and Denton Counties, Barnett Shale frac gradient variances; (abs.); 2003 AAPG Southwest Section Meeting, Fort Worth, TX; available online at: http://www.fwgs.org/swsec/ techsessions.htm. Accessed: February 15, 2004 Martineau, David F., 2007, History of the Newark East field and the Barnett Shale as a gas reservoir, AAPG Bulletin, V. 91, N. 4, p. 399-403, April 2007. Matthews, H.L., 2008, Overview of shale gas stimulation techniques, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Mavor, M. 2003, Barnett Shale Gas-in-Place Volume Including Sorbed and Free Gas Volume, 2003 AAPG Southwest Section Meeting, Fort Worth. Maxwell, S.C.; Urbancic, T.I.; Steinsberger, N.; Zinno, R., 2002, Reservoir Evaluation, Completion Techniques, and Recent Results From Barnett Shale Development in the Fort Worth Basin, SPE 77440. Mayerhofer, J.J.; Lolon, E.P.; Youngblood, J.E.; Heinze, J.R., 2006, Integration of Microseismic Fracture Mapping Results With Numerical Fracture Network Production Modeling in the Barnett Shale, SPE 102103. Meckle, L.D., Smith, D.G., and Wells, L.A., 1992, Ouachita For deep Basins :Regional Paleogeography and Habitat of Hydrocarbons, AAPG Memoir 55 : Foreland Basin and Fold Belts (Curt has book). Milliken, K. L., Choh, S.-J., Papazis, P., and Jürgen Schieber, J., 2007, “Cherty” stringers in the Barnett Shale are agglutinated foraminifera: Sedimentary Geology, v. 1, p. 221–232. Montgomery, S. L., D. M. Jarvie, K. A. Bowker, and R. M. Pollastro, 2005, Mississippian Barnett Shale, Fort Worth basin, north-central Texas: Gas-shale play with multi-trillion cubic foot potential: American Association of Petroleum Geologists Bulletin, v. 89, p. 155-175. Montgomery, S. L., 2004, Barnett Shale: A New Gas Play in the Forth Worth Basin, in Petroleum Frontiers, HIS Energy, v.20, No.1, 74 p. Mutalik, P.N.; Bigson, Bob, 2008, Case History of Sequential and Simultaneous Fracturing of the Barnett Shale in Parker County, SPE 116124. Namy, J.N., 1982, Stratigraphy and Hydrocarbons of the Marble Falls Group, Southern Part of the Fort Worth Basin, Petroleum Geology of the Fort Worth Basin and Bend Arch Area, DGS. Ng, David Tai Wai, 1979, Subsurface Study of the Stoka ( Lower Penn) in Jack Palo Pinto, Parker and Wise Counties. Nieto, J.; Bercha, R., 2009, Shale gas petrophysics, Montney and Muskwa are they Barnett look alikes? Petrophysics (Houston, Tex.), 50(2), p.170; 50th SPWLA annual logging symposium, The Woodlands, TX, June 21-24, 2009. Nunneley, J.E., 2008, Gas in place identification from mudlog gas, barnett shale - Fort Worth Basin, Texas, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Palmer, Ian; Moschovidis, Zissis; Cameron, John, 2007, Modeling Shear Failure and Stimulation of the Barnett Shale After Hydraulic Fracturing, SPE 106113. Papazis, P. K., 2005, Petrographic Characterization of the Barnett Shale, Fort Worth Basin, Texas: unpublished M.S. Thesis, The University of Texas at Austin, 142 p., Appendices.

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Parker, M., 2009, Understanding process key to shale gas development, Oil & Gas Journal, 107(36), p.50-52, 54-55. Parker, Mark; Slabaugh, Billy; Walters, Harold; Hart, Thomas F. Walsh, Howard; Haley, Will; Harper, Joe; Weaver, Jim, 2003, Integrating Fracture Mapping Technologies to Optimize Stimulations in the Barnett Shale, SPE 80912. Parshall, J. 2008. Barnett Shale Showcases Tight-gas Development. Journal of Petroleum Technology. September 19, 2008. Lantz, G. 2008 .The Barnett Shale Magazine. Drilling Green Along Trinity Trails. Summer 2008. Penny, G.S.; Pursley, J.T.; Clawson, T.D., 2006, Field Study of Completion Fluids To Enhance Gas Production in the Barnett Shale, SPE 100434. Peppard- Souders, 1975, Structure and Stratigraphy of the Fort Worth Basin, Peppard-Souders consultant study. Perez, R.; Slatt, R., 2007, Potential fracturable facies identification using seismic attributes and seismic inversion, Geological Society of America, 39(6), p.470; Geological Society of America, 2007 annual meeting, Denver, CO, Oct. 28-31, 2007. Perez, R.; Slatt, R.M., 2008, Potential fracturable facies identification based from seismic attributes and microseismic from the Barnett shale, Newark East field, Texas, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. The Perryman Group. 2007. Bounty from Below: The Impact of Developing Natural Gas Resources Associated with the Barnett Shale on Business Activity in Fort Worth and the Surrounding 14-County Area. May 2007 Plummer , F.B., 1943, The Carboniferous Rocks of the Llano Regional of Central Texas, UT Bull 4329. Plummer and Moore (named Barnett Shale), 1922, Stratigraphy of the Pennsylvania Formations of the North Central Texas, UT Bull 2132. Plummer, F.B., 1950, The Carboniferous Rocks of the Llano Regional of Central Texas. Plummer, F.B., and Hornberger J., 1935, Geology of Palo Pinto County, Texas (contains section on coal), UT Bull 3534. Pollastro, R.M., 2003, Assessing Undiscovered Resources of the Barnett- Paleozoic Total Petroleum System, Bend Arch Ft. Worth Basin Province, AAPG Southwest Section Convention. Pollastro, R.M., 2003, Geological and Production Characteristics Utilized in Assessing in the Barnett Shale Continuous Gas Accumulation, Barnett Shale Symposium, Geotechnology Institute at Brookhaven College. Pollastro, R.M., 2004, Assessment of Undiscovered Oil and Gas Resources of the Bend Arch- Fort Worth Basin Province of North-Central Texas and Southwestern Oklahoma, USGS Fact Shee. Pollastro, R.M., 2004, Geologic and Organic Geochemical Framework of the Barnett- Paleozoic Total Petroleum System, AAPG Annual Meeting Program Abstracts. Pollastro, R.M., 2004, Geologic and production characteristics utilized in assessing the Barnett Shale continuous (unconventional) gas accumulation, Barnett-Paleozoic Total Petroleum System, Fort worth Basin, Texas. Potapenko, D.I.; tinkham, S.K.; Lecerf, B.; Fredd, C.N.; Samuelson, M.L.; Gillard, M.R.; LeCalvez, J.H.; Danies, J.L., 2009, Barnett Shale Refracture Stimulations Using a Novel Diversion Technique, SPE 119636. Pratt, W.E., 1919, Geologic Structure and Producing Area in North Texas, AAPG Bull V. 3, p44-70. Potter, E., 2006, Overview of Barnett Play: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Puckette, J.; Boardman, D.; Coffey, B.; Gerding, E.; Kamman, P.; Aryal, N.; Singh, M.; Rihn, A.; Paxton, S., 2007, Comparative lithology of the Barnett Shale, central Texas and age-equivalent Caney Shale in southern Oklahoma, American Association of Petroleum Geologists, Vol.2007, p.113; AAPG 2007 annual convention & exhibition, Long Beach, CA, April 1-4, 2007. Pursell, D.; Heikkinen, D.; Pickering, D., 2008, Economics of unconventional natural gas plays in North america:or the implications of less exploration risk and more completion risk, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Railroad Commission of Texas, 2009, Newark, East (Barnett Shale) Field. http://www.rrc.state.tx.us/data/fielddata/barnettshale.pdf. Accessed March 2009. Railroad Commission of Texas (RRC), 2008, Water Use in the Barnett Shale. http://www.rrc.state.tx.us/divisions/og/wateruse_barnettshale.html. Ramakrishnan, H.; Waters, G.; Boratko, E.; Latifzai; Bentlye, D.; Kelley, J. Application of Downhole Injection Stress Testing in the Barnett Shale Formation, SPE 1224147.

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Reed, R. M., 2006, Barnett Matrix Pore-Network Analysis: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Reed, R. M., 2008, Nanopore Architecture in Paleozoic Black Shales of Texas: Barnett and Beyond: 2007 Annual Meeting and Workshop, Austin, Texas, February. Reed, R.; Loucks, R., 2007, Imaging nanoscale pores in the Mississippian Barnett Shale of the northern Fort Worth Basin, American Association of Petroleum Geologists, Vol.2007, p.115; AAPG 2007 annual convention & exhibition, Long Beach, CA, April 1-4, 2007. Reed, R.M.; Loucks, R.G.; Jarvie, D.; Ruppel, S.C., 2008, Differences in nanopore development related to thermal maturity in the Mississippian Barnett shale: preliminary results, Geological Society of America, 40(6), p.268; Geological Society of America, 2008 annual meeting, Houston, TX, Oct. 5-9, 2008. Reed, R. M., 2006, Preliminary Fracture Analysis of Mississippian Barnett Shale Samples, Fort Worth Basin, Texas: South Central Meeting, Geological Society of America, March. Reed; R. M., Loucks, R. G., Jarvie, D. M., and Ruppel, S. C., 2008, Morphology, Distribution, and Genesis of Nanometer-Scale Pores in the Mississippian Barnett Shale: American Association of Petroleum Geologists, Annual Meeting. Rowe, H., 2009, Geochemistry of the Barnett Shale: Implications for Depositional Environment: 2008 Annual Meeting and Workshop, Austin, Texas, February. Rowe, H., Loucks, R., Ruppel, S., and Rimmer, S., 2008, Mississippian Barnett Formation: Bulk Geochemical Constraints on the Severity of Hydrographic Restriction and the Biogeochemical Cycling and Fate of Iron: American Association of Petroleum Geologists, Annual Meeting. Roberts, J. E., and Kohles, K. M., 1999, Correlative subsurface database for the Atoka and Morrow formations and underlying Mississippian Barnett Shale of southeastern New Mexico, in Grace, D. T., and Hinterlong, G. D., The Permian Basin: providing energy for America: West Texas Geological Society, v. 99-106, p. 35–41. Ruppel, S. C., 2006, A Regional Look at the Barnett “Shale”: Annual Project Meeting and Workshop for 2005, Austin, Texas, February. Ruppel, S. C., 2006, Depositional History and Sedimentology of the Barnett Shale in the Fort Worth Basin: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Ruppel, S. C., 2008, Introduction to the Geology of Middle Paleozoic Mudrock Systems in Texas, in Barnett, Woodford, and Related Mudrock Successions in Texas Cores and Outcrops: A Core Workshop Prepared for the 2008 AAPG/SEPM Annual Convention, San Antonio, Texas, April. Ruppel, S. C., 2008, The Woodford Mudrock System in Texas, in Barnett, Woodford, and Related Mudrock Successions in Texas Cores and Outcrops: A Core Workshop Prepared for the 2008 AAPG/SEPM Annual Convention, San Antonio, Texas, April. Ruppel, S. C., and Loucks, R. G., 2008, The Barnett Shale of the Southern Fort Worth Basin; Comparison of Depositional Setting, Lithofacies, and Mineralogy with Equivalent Deposits in the Northern Basin: American Association of Petroleum Geologists, Annual Meeting. November 8 (Midland, TX) and November 14 (Houston, TX). Ruppel, S. C., Gale, J., Loucks, R. G., and Wright, W., 2007, Mississippian Barnett Fm. Mudrocks: Stratigraphy, Facies, Mineralogy, and Chemistry: 2006 Annual Meeting and Workshop, Austin, Texas, February. Ruppel, S. C., Loucks, R. G., and Wright, W., 2006, Mississippian/Barnett cores, Ft. Worth Basin: Annual Project Meeting and Workshop for 2005, Austin, Texas, February. Ruppel, S.C., and Loucks, R. G., 2007, New Insights on the Barnett System: 2006 Annual Meeting and Workshop, Austin, Texas, February. Ruppel, S.C., Wright, W., and Loucks, R. G., 2007, Nature and Significance of Barnett (Mississippian)—Marble Falls (Pennsylvanian) Contact: 2006 Annual Meeting and Workshop, Austin, Texas, February. Ruppel, S. C., and Loucks, R. G., 2008, Black mudrocks: Lessons and questions from the Barnett shale in the Southern midcontinent: Sedimentary Record, v. 6, no. 2, p. 4–8. Ruppel, S. C., 2006, Stratigraphy and Depositional History of the Barnett Formation and Equivalent Mississippian Rocks in the Ft. Worth Basin: South Central Meeting, Geological Society of America, March. Reed, R.M.; Loucks, R.G.; Jarvie, D.M.; Ruppel, S.C., 2008, Morphology, distribution, and genesis of nanometer-scale pores in the Mississippian barnett shale, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Reily, M.M., 1982, Several Gas Producing Reservoirs in the Southern Portion of Palo Pinto County Texas, Dallas Geological Society.

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Reimers, D., 2008, Shale gas - U.S. trends and expansion, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Res Tech Houston Inc., 1991, Log, Core, and Geochemical Analysis in the Barnett Shale, GRI Contract 5086-213-1390. Rickman, Rick; Mullen, Mike; Petre, Erik; Grieser, Bill; Dundert, Donald, 2008, A Practical Use of Shale Petrophysics for Stimulation Design Optimization: All Shale Plays Are Not Clones of the Barnett Shale, SPE 115258 Rozendel, D.I., and Erskine, W.S., 1971, Deep Test in Ouachita Structural Belt of Central Texas, AAPG v 35 no.11. Ruppel, S.C.; Loucks, R.G.; Kane, J.; Wright, W., 2006, Depositional history and stratigraphy of the Barnett Shale in the Fort Worth Basin; implications for the Permian Basin, West Texas Geological Society, Vol.06-117, p.105; West Texas Geological Society 2006 fall symposium; Resource plays in the Permian Basin; resource to reserves, Midland, TX, Oct. 25-27, 2006. Ruppel, S.C.; Loucks, R.G.; Wright, W.R.; Kane, J.A.; Wang, F.P., 2007, Similarities and contrasts among major Paleozoic shale gas reservoir plays in Texas and New Mexico, American Association of Petroleum Geologists, Vol.2007, p.120; AAPG 2007 annual convention & exhibition, Long Beach, CA, April 1-4, 2007. Sandeep, Janwadkar; Morris, Stephen; Potts, Mike; Fortenberry, David;Roberts, Geoff; Kramer, Mark; Privott, Steve; Rogers, Tom, 2007, Advanced LWD and Directional Drilling Technologies Overcome Drilling and Completion Challenges in Lateral Wells of Barnett Shale, SPE 110837. Schein, Gary W.; Carr, Philip Dale; Canan, Patrick A.; Richey, Ray, 2004, Ultra Lightweight Proppants: Their Use and Application in the Barnett Shale, SPE 90838. Schmoker, Quinn, et al, 1996, Production Characteristics and Resources Assessment of the Barnett Shale, USGS Open File Report 96-254. Sellards, Adkins and Plummer, 1932, The Geology of Texas, UT Bull 3232. Shelley, Bob; Grieser, Bill; Johnson, Bill J.; Fielder, Eugene O.; Heinze, James R.; Werline, J.R., 2008, Data Analysis of Barnett Shale Completions, SPE 100674. Shirley, Kathy, 2002, Barnett Shale Living Up to it's Potential, AAPG Explorer July 7, 2002. Shirley, Kathy, 2001, Shale Gas Exciting Again, AAPG Explore, march 3, 2001. Siebrits, E.; Elbel, J.L.; Hoover, R.S.; Diyashev, I.R.; Griffin, L.G.; Demetrius, S.L.; Wright, C.A.;Davidson, B.M.; Steinsberger, N.P.; Hill, D.G., 2000, Refracture Reorientation Enhances Gas Production in Barnett Shale Tight Gas Wells, SPE 63030. Singh, P.; Slatt, R.; Coffey, W., 2008, Barnett shale–unfolded: sedimentology, sequence stratigraphy and regional mapping, Geological Society of America, 40(6), p.572; Geological Society of America, 2008 annual meeting, Houston, TX, Oct. 5-9, 2008. Singh, P.; Slatt, R.; Coffey, W., 2008, Sequence stratigraphy of mudrocks; example of the Barnett Shale, north Texas, USA, Internationale, Resumes, Vol.33; 33rd international geological congress, Oslo, Norway, Aug. 6-14, 2008. Singh, P.; Slatt, R.M.; Rai, C.; Stamm, C., 2008 "How is the Barnett Shale stratified? Extracting the answer from cores and logs" AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Slatt, R.M.; Singh, P.; Borges, G.; Perez, R.; Portas, R.M.; Vallejo, J.; Ammerman, M.; Eslinger, E., 2008, Reservoir characterization of the Barnett shale, Newark East field, TX, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Sloan, 1955, Palecology of the Penn Marine Shales of Palo Pinto County, J. Geology v 63 no 5. Spivey, .C., and Roberts, T.G., 1946, Lower Penn Terminology in Central Texas, AAPG Bull v 30. Stamm, C.; Homann, H.; Creden, S.;Freitag, H.C.; Fuldaand, C.; Lindsay, G., 2007, Barnett Shale - New LWD sensor technology provides crucial formation evaluation information at reduced cost and risk for land operations, SPWLA 2007-00. Stevens, S.; Kuuskraa, V., 2009, Gas shale; 1, Seven plays dominate North American activity, Oil & Gas Journal, 107(36), p.39-42, 44-46, 48-49. Syfan, Frank E. Jr.; Newman, Stacy C.; Meyer, Bruce R.; Behrendt, Dan M., 2007, Case History: G-Function Analysis Proves Beneficial in Barnett Shale Application, SPE 110091. Theodori, G.L., 2008, Public Perception of the Natural Gas Industry: Insights From Two Barnett Shale Counties, SPE 115917. Thompson, D.M., 1982, Terrigenous Depositional Systems, Diagenesis and Reservoir Distribution and Positional Qualities, University of Texas Bureau of Economic Geology. Thompson, D.M., 1988, The Geology of North America, Geological Society Of America.

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Townsend, A.; Anderson, K.; Gunderson, G., 2005, Using Chemical Markers Production Analysis Early-Time Assessment Stimulation Effectiveness in Reservoir Quality Barnett Shale Completions, SPE 94290. Turner, G.I., 1957, Paleozoic stratigraphy of the Fort Worth basin; in Bell, W.C., ed., Abilene and Fort Worth Geological Societies Joint Field Trip Guidebook, p. 57-77. Valko, Peter P.,2009, Assigning Value to Stimulation in the Barnett Shale: A Simultaneous Analysis of 7000 Plus Production Histories and Well Completion Records, SPE 119369. Walper, J.L., 1977, Paleozoic Tectonics of the Southern Margin of North America, GCAGS v 27, p 230-241. Walper, J.L., 1982, Plate Tectonic of the southern Margin of North America, GCAGS v 27 P 230- 241. Walser, D., 2006, Induced fracture azimuth and stimulated network size determination in West Texas Barnett and Woodford Shale wildcatting, West Texas Geological Society, Vol.06-117, p.147; West Texas Geological Society 2006 fall symposium; Resource plays in the Permian Basin; resource to reserves, Midland, TX, Oct. 25-27, 2006. Wang, F., 2006, A Review of Production Technology of Barnett Shale: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Warpinski, N.R.; Kramm, R.C.; Heinze, J.R.; Waltman, C.K., 2005, Comparison of Single- and Dual-Array Microseismic Mapping Techniques in the Barnett Shale, SPE 95568. Water Use in the Barnett Shale, Railroad Commission of Texas, updated July 30, 2008, from http://www.rrc.state.tx.us/barnettshale/wateruse_barnettshale.php. Waters, G., 2008, Use of horizontal well image tools in the completion of Barnett Shale wells, AAPG 2008 annual convention & exhibition, San Antonio, TX, April 19-23, 2008. Waters, G.; Heinze, J.; Jackson, R.; Ketter, A.; Daniels, J.; Bentlye, D., 2006, Use of Horizontal Well Image Tools to Optimize Barnett Shale Reservoir Exploitation, SPE 103202. Waters, G.; Ramakrishnan,H.; Janiesl, J.; Benthley, D.; Belhardi, J.; Sparkman, D., 2009, Unlocking the Unconventional Oil and Gas Reservoirs: Utilization of Real Time Microseismic Monitoring and Hydraulic Fracture Diversion Technology in the Completion of Barnett Shale Horizontal Wells, OTC 20268. Watson, W.G., 1980, Paleozoic Stratigraphy of the Llano Uplift Area, West TX Geol Soc Pub 80-7.3 Weaver, O.D, 1956, Introduction to the Fort Worth Basin, Soc Econ Paleo and Mineral Permian Basin section- oral paper. Webster, J.L., 1980, Evolution to the Southern Oklahoma Aulacogen, OGJ Feb 18, 1980 p.150-172. White, 1948, A Study of the Mississippi Deposits in the Subsurface of North Central Texas, Texas Christian University- MS. Wiggens, W.D., 1982, Depositional History and Micro Spar Development in Reducing Pore Water, Marble Falls Limestone, UT Doc Diss ( W 629 1982). Williams, Harold, 1958, Barnett Shale- in Lexicon of Pre-Penn Strat Names of W. TX and SW NM, West TX Geol Soc Pub 80-73. Williams, L., 1982, The Viola Ordovician of Southwest Montague County, Dallas Geological Society. Williams, Peggy, 2002, The Barnett Shale, Oil and Gas Investor v.22 no.3 p34-35. Winton and Adkins, 1931, Geology of Tarrant County, UT Bull 1931. Wright, W., 2006, Stratigraphic Architecture of the Barnett Formation in the Greater Fort Worth Basin: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Wright, W., 2007, Regional Distribution and Stratigraphic Architecture of the Barnett Formation, Greater Fort Worth Basin: Society of Petrophysicists and Well Log Analysts Annual Meeting Short Course, Barnett Shale-Gas Play of the Fort Worth Basin: Overview of Zeng, H., 2006, Clinoforms in the Barnett Shale, Wise County, Fort Worth Basin, Texas: Barnett Shale-Gas Play of the Fort Worth Basin: Texas Region Petroleum Technology Transfer Council Workshop, November 8 (Midland, TX) and November 14 (Houston, TX). Zhao, H., 2004, Thermal maturation and physical properties of Barnett Shale in Fort Worth Basin, North Texas (abs); American Association of Petroleum Geologists Annual Meeting, 2004; Session on Unconventional Gas; available online at: http://aapg.confex.com/aapg/da2004/techprogram/ A87090.htm.

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