With seven wells completed in the emerging Eagle Ford shale play in South Texas, Petrohawk Energy Corp. executive vice president and chief operating officer Richard Stoneburner is confident in declaring “it’s going to be very, very commercial.”

Speaking to IPAA and Tipro members in Houston recently, he said the company estimates in excess of 210 billion cubic feet (Bcf) of gas in place per section and an average flow rate among completed wells of 8.4 million cubic feet (MMcf) of gas per day.

“We’ve already proven it. With this kind of gas in place, it almost has to be (commercial).”

Petrohawk’s last three wells took just 17 days from spud to total depth of about 16,000 feet. “That’s a remarkable accomplishment with a small sample set to do in a short period of time. That is the key driver to driving costs down.”

Well costs in the Eagle Ford have dropped below $5 million, compared with the company’s Haynesville shale wells that now cost about $9 million.

The gas-in-place numbers are “so exceptional,” he said, because the shale is some 250 feet thick over a 50-by-25-mile swath and is 100% net pay. The pressure gradient, while not as high as the Haynesville, is still “above normal” at 0.65.

Petrohawk holds 156,000 net acres in LaSalle and McMullen counties, most of which the company acquired in about three months of leasing. Acreage was easier to acquire in South Texas, due to the many large, single-owner ranches, he said.

When the company began compiling the play, it focused on geology that was down-dip from the Edwards Reef trend. “We thought that’s where the rocks would be the thickest and most conducive to a thermogenic play.”

Petrohawk’s holdings are where the Stuart City Reef trend and the Sligo Reef trend converge at between 11,000 and 12,000 feet, an optimal depositional setting resulting in thicker shale. “I’m not sure this field will be repeated throughout the trend because of the unique geologic nature of where these rocks sit.”

When choosing where within that 250-foot thickness to run the lateral, he said the best rock is about 40% from the top, where the whole section can be effectively stimulated from top to bottom.

“We’ve found a consistent correlation” over the 50-mile range, he said. “So far, we’ve landed all of those wells pretty well in that interval without pilot holes. We’ve hit a few faults, had a few anxious moments, but all of them have worked out pretty well.”

An anomaly in the play is that wells on the northeastern end of the field tend to flow about 100 barrels of condensate per million cubic feet of gas, while wells on the southwestern end are dry gas, likely due to an uplift. Stone­burner says that because of the difference between gas and liquids prices, a well flowing at a lower volume of gas can be more economical than one with a higher rate due to the liquids it produces.

“It’s a great economic benefit to have a liquid component to it.”

When comparing the Eagle Ford to the Haynesville, “as you go down the list there are a lot of ties—all in all you’ve got two really good shales.”

One difference, however, is that the Haynesville has recoverable reserves of 7.5 Bcf equivalent per well, while the Eagle Ford has 5.5 billion equivalent. Why is that the case, if the Eagle Ford has more gas in place?

“We don’t see any natural fracturing in the Eagle Ford while we see extensive natural fracturing in the Haynesville.” When the Haynesville is fracture stimulated, the frac is effective and thorough, while an Eagle Ford frac does not penetrate as thoroughly. “We’re not draining as big an area.”

But, he adds, 5.5 billion equivalent for $5 million is nothing to complain about.

Completion costs came down significantly after the first quarter when the inventory of frac jobs depleted and service companies were scrambling to keep crews busy and trucks working. “An amazing drop in stimulation costs occurred almost overnight. Our $3-million frac went down to $700,000.”

The Eagle Ford is “a cool story” that came about in a short period. “We want to be in the best rock. It’s been a great run to develop such a fun play.”