The Barnett Shale in the Fort Worth Basin of North Texas is an organically rich, thermally mature, siliceous black shale of Mississippian age (354-323 million years ago). It is an extremely “tight” gas reservoir meaning that the reservoir exhibits low permeability and the gas is not easily extracted. As of January 1, 2010, there were over 13,000 producing wells covering all or portions of 18 counties and 5000 plus square miles. More than 9,100 horizontal wells and 4,600 vertical wells produce over 4.7 Bcf and 9,000 BO per day. Cumulative production is over 7 Tcf and 20 MMBO with estimated reserves as high as 40 Tcf and could have a commercial life of over 75 years. It is currently the largest gas field in Texas and ranks– in terms of annual production– as one of the largest gas fields in the United States. Mitchell Energy drilled the first gas well in the Barnett Shale in 1981. For the next 20 years, Mitchell Energy continued to work at improving the technology to unlock the key to the Barnett Shale.
		By the late 1990s, Mitchell Energy improved the overall economics of Barnett Shale gas wells by using a unique hydraulic fracturing method. This “slick water frac” combines the use of water, surfactants and sand under high pressure to fracture the rock and release the gas.
		Since Mitchell Energy’s pioneering efforts, many gas companies have continued to develop methods and technologies to improve production. The final piece of the puzzle was the introduction of horizontal drilling in 2002. This technology continued to improve upon the overall economics of the wells and opened up previously uneconomic areas of the play to future development. The East Texas Basin, one of the countries oldest and largest oil and gas fields, continues to evolve with many reservoirs, solid economics and excellent infrastructure connections to markets. Grenadier is primarily interested in the Cotton Valley and shallower formations. Like the Barnett Shale, the improvement in fracturing techniques and horizontal drilling have expanded the basin’s potential.