King Enters Barnett Shale


King Operating Corp. has entered into a joint venture with the Harding Company to participate in the drilling of two horizontal Barnett Shale wells. (#1H Hill-South, #1H HBA) The Harding Company is a Dallas, TX. based independent Oil & Gas Company founded in 1953, which has recently entered into a joint venture with Exxon-Mobil to develop Barnett Shale properties

The Barnett Shale is located in the Fort Worth Basin, and is one of the largest and most active domestic natural gas plays in the U.S. Production is 1.2bcf/d and there are 100 rigs drilling.

The Barnett Shale has come a long way over the last 5-10 years, as light sand fracs and horizontal drilling have driven an explosion of activity in the play, with over 4,500 wells drilled to date. Currently, more than 100 companies are active in the Barnett Shale, and the industry has expanded the rig count in the play to over 100 rigs from only 30 rigs in 2003. We believe the rig count in the play will only move higher, as many of the larger players are adding rigs over the remainder of the year.

Public companies active in the play include Exxon-Mobil, Burlington Resources Inc. (Conoco-Phillips), Shell Oil Company, Petrosearch Energy Corp., Chesapeake Energy Corp., Carrizo Oil & Gas Inc., Denbury Resources Inc., Devon Energy Corp., EnCana Corp., EOG Resources Inc., Infinity Energy Resources Inc., Parallel Petroleum Corp., and XTO Energy Inc.