Friday, November 21, 2014

New Texas Permits

10/20/14 - 11/20/14:
  • Soape, A.C. Gas Unit Allocation #17H, BP America; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: OWEN, J, A-522 
  • Amazon #1H, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co. Co., Survey: HOLMES, S, A-287 

Thursday, November 20, 2014

New Texas Completions

10/20/14 - 11/19/14:
  • York SU #2HB, EXCO Operating: 9.539 MMcf/day IP, 15/64" choke, 9,438 psi; Perfs: 13,206-18,146, length: 4,940 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: WOOD, C , A-310 
  • Redhawks (SL) DU #B1SL, XTO Energy: 10.407 MMcf/day IP, 19/64" choke, 7,165 psi; Perfs: 12,520-19,135, length: 6,615 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: HARRISON, J, A-306 

EIA: Gas in Storage -17 Bcf to 3.594

So long to the injection season:  net storage withrawals from storage have begun.  The EIA announced this morning that working gas in storage was down 17 Bcf to 3.594 Tcf.  The weekly withdrawal was half of last year's (-36 Bcf) but 7 Bcf higher than the five year average (-10 Bcf).  The current storage level is now 5.3% below last year (3.795 Tcf, a difference of 201 Bcf) and 6.4% below the five year average (3.838 Tcf, a difference of 244 Bcf).


Tuesday, November 18, 2014

A Couple of New Louisiana Completions

  • Brown 17 #5, Petrohawk Operating: 8.976 MMcf/day IP on 16/64 in. choke at 7,018 psi; Perfs: 11,393-15,847, length: 4,454 ft.; Elm Grove Field, Bossier Parish, S17/T16/R11; res. A, serial #247799 
  • QP 3+10-12-12 HC #1, Chesapeake Operating: 8.821 MMcf/day IP on 20/64 in. choke at 7,415 psi; Perfs: 12,156-17,149, length: 4,993 ft.; Red River-Bull Bayou Field, DeSoto Parish, S34/T13/R12; res. A, serial #248044

Haynesville Shale Rig Count Unchanged at 22

Last week's Haynesville Shale rig count was unchanged at 22.  Louisiana held at 17, while Texas held at five.


Friday, November 14, 2014

U.S. Rig Count: +3 to 1,928

The Baker Hughes (how long will we be able to say that if Halliburton buys BHI???) U.S. rig count was up three this week to 1,928.  Oil rigs were up 10 to 1,578, gas rigs were down six to 350 and miscellaneous rigs were down one to zero.  By type, horizontal rigs were up seven to 1,369, vertical rigs were down six to 354 and directional rigs were up two to 205.  Among gas rigs, horizontal rigs were down two to 261, directional rigs were down five to 59 and vertical rigs were up one to 30.

EIA: Gas in Storage +40 Bcf to 3.611 Tcf

It's hard to believe, sitting here bundled up with my wool socks on, that working gas in storage is still going up, but I'm reminded that I was wearing shorts last week and that's the time period for this week's EIA's weekly report.  This morning's report showed a 40 Bcf increase to 3.611 Tcf.  The weekly injection was 82% greater than last year (+22 Bcf) and 2.5 times greater than the five year average (+16 Bcf).  The current storage level is now 5.7% below last year (3.831 Tcf, a difference of 220 Bcf) and 6.2% below the five year average (3.848 Tcf, a difference of 237 Bcf).


Tuesday, November 11, 2014

Haynesville Shale Rig Count: -2 to 22

The Haynesville Shale rig count was down again this week, dropping two to 22.  Louisiana was down two (J-W moved its last Haynesville rig to Cotton Valley, and EXCO), while Texas was unchanged at five.


Friday, November 7, 2014

U.S. Rig Count: -4 to 1,925

The Baker Hughes U.S. rig count was down by four this week to 1,925.  Oil rigs were down 14 to 1,568, gas rigs were up 10 to 356 and miscellaneous rigs held at one.  Over the past two weeks, gas rigs have jumped by 24.  By type, horizontal rigs were up nine to 1,362, vertical rigs were down five to 360 and directional rigs were down eight to 203.

Matador Updates South Caddo Progress

In its third quarter earnings report, Matador Resources devoted a fair amount of ink to update drilling and production on property it has leased in the southern part of Caddo Parish.  Chesapeake is the operator of the wells, but Matador has a significant ownership percentage.  I've excerpted the text from Matador's update, but the highlights are as follows:  1) CHK has a plan to drill 45 wells in the Elm Grove field through 2016, 2) it is operating three rigs in this cause and 3) as of November 5 nine of the wells are producing and the completed wells are averaging 8 to 12 MMcf/day.  

Here is the full text:

Thursday, November 6, 2014

EIA: Gas in Storage +91 Bcf to 3.571 Tcf

Natural gas keeps roaring into storage, as evidenced by a 91 Bcf weekly injection, bringing the EIA working gas in storage to 3.571 Tcf.  The injection was 2.6 times greater than last year (+35 Bcf) and 2.2 times greater than the five year average (+42 Bcf).  The current storage level is now 6.2% below last year (3.809 Tcf, a difference of 238 Bcf) and 6.8% below the five year average (3.832 Tcf, a difference of 261 Bcf).


As the deviation between the current year and the five year average continues to narrow, the picture looks more and more like a mirror image of 2012 when gas in storage was way above average and narrowed towards the end of the year:

Tuesday, November 4, 2014

Haynesville Shale Rig Count: -1 to 24

The Haynesville Shale rig count was down one last week to 24.  Louisiana was down one to 19 (J-W Operating shifted one from Haynesville to Cotton Valley) whileTexas held at five.

Friday, October 31, 2014

U.S. Rig Count: +2 to 1,929 (But Gas Rigs +14)

The Baker Hughes U.S. rig count was up two this week to 1,929.  Oil rigs were down 13 to 1,582, gas rigs were up 14 to 346 (their highest level since February 7, 2014) and miscellaneous rigs were up one to one.  By type, horizontal rigs were down two to 1,353, vertical rigs were up four to 365 and directional rigs were unchanged at 211.  Among gas rigs, horizontal rigs were up 11 to 256, directional rigs were up four to 63 and vertical rigs were down one to 27.

Thursday, October 30, 2014

A Bunch of New Louisiana Completions

  • Roos #33, Petrohawk Operating: 7.252 MMcf/day IP on 16/64 in. choke at 5,690 psi; Perfs: 11,383-15,805, length: 4,422 ft.; Elm Grove Field, Bossier Parish, S17/T16/R11; res. A, serial #247797 
  • Brown 17 #7-ALT, Petrohawk Operating: 8.706 MMcf/day IP on 16/64 in. choke at 7,012 psi; Perfs: 11,168-15,628, length: 4,460 ft.; Elm Grove Field, Bossier Parish, S17/T16/R11; res. A, serial #248068 

EIA: Storage +87 Bcf to 3.48 Tcf

The EIA reported this morning that working gas in storage was up 87 Bcf last week to 3.48 Tcf.  The weekly injection was 93% greater than last year (+45 Bcf) and 47% above the five year average (+59 Bcf).  The current storage level is now 7.8% below last year (3.774 Tcf, a difference of 294 Bcf) and 8.2% below the five year average (3.79 Tcf, a difference of 310 Bcf).


Temperatures in the Lower 48 last week averaged 56.7 degrees, which was 2.6 degrees warmer than last year and 1.7 degrees warmer than average.

Wednesday, October 29, 2014

EXCO Provides Haynesville Operations Update

EXCO Resources reported quarterly earnings yesterday and provided an operational update for its Haynesville acreage.  The company is circling the wagons a bit, especially as natural gas prices are dropping.  It is still looking for a new CEO and has been shedding assets in an effort to pay down debt to maximize liquidity.  It has also lowered capital spending and is shifted focus away from the Marcellus Shale and instead concentrating on the Haynesville and Eagle Ford.


Tuesday, October 28, 2014

Rig Map Updated, Improved

I've been getting lazy about updating my Haynesville maps.  It's been a couple of years since updating the completions map (it's sort of unwieldy in Google Maps), but I have fewer excuses for not updating the rig count.  After being prodded (thank you, John), I updated the information and rebuilt the map on the newer Google Maps platform.  Now, when I update, I'll add new information by layers so you can see the progression over time (depending on when I get around to updating it...).  To be sadistic, I added one layer for July 30, 2010, which was the 168 rig peak for the Haynesville Shale.  You can see how things have changed over time:


BHP Looking to Sell Fayetteville Shale Assets (and a Dose of Cynicism)

Well, when I first read the headline in the Financial Times, it said "BHP puts gas asset up for sale as it finetunes US shale business" (good article but may require registration; here's another).  My first thought was that BHP was going to unload its Petrohawk assets, including the Haynesville.  Instead, BHP is looking to dump the Fayetteville Shale assets it bought from Chesapeake Energy in 2011 for $4.75 billion.  Seemed like a good idea at the time, at least for Chesapeake, but it hasn't worked out for BHP because natural gas prices have remained in the toilet since then.

The sale is part of a larger corporate strategy by BHP to focus on its Big Four commodities:  iron ore, petroleum, copper and coal.  It also wants to shift its oil and gas focus more towards liquids than gas (sound familiar?), which is pretty much all you would get from the Fayetteville.  Over the past decade, it became fashionable for the big mining conglomerates to cobble together as many different assets as possible to (unintentionally) become unmanageable behemoths.  Fashionable, meaning the companies' stock prices increased as Wall Street analysts fawned over them.

Monday, October 27, 2014

Haynesville Shale Rig Count: -1 to 25

The Haynesville Shale rig count was down one last week to 25.  Louisiana held at 20, while Texas lost one to end at five (Goodrich left Angelina Co.).


Friday, October 24, 2014

New Louisiana Completions

  • Lady Oak Farms 4-9 H #1, Petrohawk Operating: 9.442 MMcf/day IP on 16/64 in. choke at 8,036 psi; Perfs: 12,057-17,325, length: 5,268 ft.; Caspiana Field, Red River Parish, S4/T14/R12; res. A, serial #247435 
  • Lady Oak Farms 4-9 H #2, Petrohawk Operating: 9.517 MMcf/day IP on 16/64 in. choke at 8,224 psi; Perfs: 11,819-16,927, length: 5,108 ft.; Caspiana Field, Red River Parish, S4/T14/R12; res. A, serial #247436 

U.S. Rig Count: +9 to 1,927

The Baker Hughes U.S. rig count was up nine this week to 1,927.  Oil rigs were up five to 1,595 and gas rigs were up four to 332.  By type, horizontal rigs were up two to 1,355, vertical rigs were down one to 361 and directional rigs were up eight to 211.  Among gas rigs, horizontal rigs were down five to 245, directional rigs were up five to 59 and vertical rigs were up four to 28.

The Big Kahuna Helps Keep a Lid on NatGas Prices

The EIA has been updating a variation of the chart below showing production from the main gas shale plays for the past couple of years (I cleaned it up by consolidating it into the major plays):


It's pretty remarkable how much shale gas has been produced over the past half decade. But, as one can clearly see, growth over the past several years has been driven mainly by the Marcellus Shale (light blue in chart above).  Taking that same data and charting the twelve month trailing trends (i.e. 12 months of trailing data from November 2011 versus 12 months of trailing data from November 2010) shows the trend more clearly:


Thursday, October 23, 2014

EIA: Storage +94 Bcf to 3.393 Tcf

The EIA announced this morning that working gas in storage was up 94 Bcf to 3.393 Tcf.  The weekly injection was 9% above last year (+86 Bcf) and 34% greater than the five year average (+70 Bcf).  The current storage level is now 9.0% below last year (3.729, a difference of 336 Bcf) and 9.1% below the five year average (3.731 Tcf, a difference of 338 Bcf).


Wednesday, October 22, 2014

Recent Texas Completions

10/6/14 - 10/21/14:
  • Hill Heirs Deep Gas Unit #5H, XTO Energy: 4.962 MMcf/day IP, 16/64" choke, 4,087 psi; Perfs: 11,282-17,316, length: 6,034 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: MANN, W , A-431 
  • Brent Miller Unit A2 #2H, Encana: 15.971 MMcf/day IP, 20/64" choke, 9,575 psi; Perfs: 14,720-21,322, length: 6,602 ft.; Carthage Field (Haynesville Shale), Nacogdoches Co., Survey: CHIRINO, JA, A-17 

Tuesday, October 21, 2014

QEP Sells Midstream, But Keeps Haynesville Portion

Tesoro made a splash over the weekend when it announced the purchase of the midstream assets of QEP Resources (formerly Questar) by one of its subsidiaries for $2.5 billion in cash.  The sale of QEP Field Services included gathering, treatment and pipeline infrastructure, but QEP retained midstream assets associated with the Haynesville Shale region.