Associated Press
By ALAN SAYRE , 12.09.08, 04:38 PM EST
Two energy companies said Tuesday that they have started producing natural gas from the Haynesville Shale in northwestern Louisiana, considered one of the largest domestic gas finds in years.
Houston-based Petrohawk Energy Corp. (nyse: HK - news - people ) said it had three wells now producing about 73 million cubic feet a day, while Dallas-based Exco Resources (nyse: XCO - news - people ) Inc. said it had one well producing 22.9 million cubic feet a day.
The Haynesville Shale is a formation that lies in parts of Texas, Oklahoma and Louisiana. Researchers say it could eventually produce 29 trillion to 39 trillion cubic feet of natural gas.
In four sales earlier this year, the state Mineral Board took in $221.8 million for mineral rights to state and local government land - most of that in the Haynesville Shale area.
However, with natural gas prices sliding this fall, interest tapered off during the November sale, which attracted only $3.5 million in winning. Of 55 Haynesville Shale tracts up for sale, only three received bids.
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