Topaz Resources reported a significant increase in activity in the Barnett shale formation in north and central Texas.
The number of horizontal natural gas rigs increased to its highest level over approximately the last 2½ years for which data is available according to Baker Hughes Incorporated data. The Energy Information Administration's weekly natural gas update noted that currently, horizontal rigs comprise 64% of the natural gas rig count and that vertical and directional rigs account for 20 percent and 16 percent of this total, respectively. This increase is primarily a result of all of the horizontal drilling being done to produce natural gas from shale.
The number of oil rigs rose to its highest level since January 2009, according to RigDATA, who also noted that the largest increase in the "oily" Barnett was in Montague County, which is in the heart of the Topaz Barnett oil play.
"This increased activity has been expected," commented Ted Munden, President and CEO of Topaz Resources. "The increase in natural gas prices from below $3.00 per Mcf during 2009 to over $4.50 with projections of $5.00 to $6.00 per Mcf in Q4 2010 and 2011 has been a catalyst to increased drilling in the Barnet shale formation, which has become one of the biggest natural gas plays and drilling booms in the continental United States and the largest producing gas field in Texas."
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