BHP - Petrohawk's Red Hawk Zavala County Acreage Abandoned

Petrohawk has terminated any further investment in Zavala County's Red Hawk field. We've heard this was a possibility. Eagle Ford Shale Oil wells in the county have not outperformed expectations like many other areas of the play and Petrohawk has now stepped away from the asset. BHP is not expected to continue drilling, but I'm sure the company will consider whether or not the Zavala County Eagle Ford assets fit the company's overall portfolio. Watch for well results from Chesapeake in the eastern part of the county. It will be interesting to see if Chesapeake's acreage provides better returns. Petrohawk and Chesapeake were two of the earliest movers in the county.

Petrohawk announced Results in the Red Hawk prospect in Zavala County, Texas, failed to meet minimum expectations during the quarter. As a result, capital spending at Red Hawk will be terminated and capital budgeted for 2011 will be reallocated to other operating areas.

South Texas Economic Development Booms - Eagle Ford Shale

The Texas Railroad Commission along with many in the oil & gas industry expect that development of the Eagle Ford Shale could be the largest economic boom in our state's history. With over 200 rigs working and more job openings that can be filled, expect the tax rolls to expand and new buildings throughout the region. Eagle Ford Shale boom is creating lots of opportunity in South Texas and that might be an understatement.

"Texas Railroad Commissioner David Porter said the Eagle Ford Shale could provide 'the single most economic development in our state’s history,' last week.""Porter made the comments Thursday at a luncheon hosted by the Texas Alliance of Drilling Producers, which focused on increasing communication between industry groups and highlighting issues affecting one of the hottest oil and gas plays in the world."

"The day-long event was meant to build networks of communication, but also highlighted the impact of the Eagle Ford Shale, and the technology that continues to drive one of the world’s most high-tech industries."

“Texas continues to set the tone for the nation on oil and gas policy,' Porter said. 'I am pleased to stand up here and say something everyone in this room already knows… that things are looking good here in South Texas.' ”

Read the full news release at GonzalesInquirer.com