Friday, July 24, 2015

U.S. Rig Count: +19 to 876

Big jump in oil rigs this week as the total BHI U.S. rig count was up 19 to 876.  Oil rigs were up 21 to 659, gas rigs were down two to 216 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were up 12 to 662, vertical rigs were up eight to 131 and directional rigs were down one to 83.  Among gas rigs, horizontal rigs were up two to 160, directional rigs were down three to 39 and vertical rigs were down one to 17.

Thursday, July 23, 2015

Two Weeks of Louisiana Completions

  • Bradway 25+24-15-12 HC #2-ALT, Chesapeake Operating: 14.91 MMcf/day IP on 22/64 in. choke at 6,875 psi; Perfs: 12,332-17,507, length: 5,175 ft.; Caspiana Field, Caddo Parish, S24/T15/R12; res. B, serial #247651 
  • Boggess 5-8 HC #1-ALT, Comstock Oil & Gas: 20.5 MMcf/day IP on 26/64 in. choke at 6,500 psi; Perfs: 11,638-19,068, length: 7,430 ft.; Belle Bower Field, DeSoto Parish, S32/T13/R16; res. A, serial #248862 

EIA: Storage +61 Bcf to 2.828 Tcf

The EIA announced this morning that working gas in storage was up 61 Bcf to 2.828 Tcf.  Because of a correction of previous data, the implied flow was 68 Bcf, but the actual difference from last week is 61 Bcf, so I'll go with that.  The weekly injection was 34% below last year (+92 Bcf) but 15% higher than the five year average (+53 Bcf).  The current storage level is now 28.8% above last year (2.206 Tcf, a difference of 622 Bcf) and 2.9% higher than the five year average (2.747 Tcf, a difference of 81 Bcf).


Temperatures in the Lower 48 last week averaged 75 degrees, which was 1 degree warmer than last year and in line with the average for the week.

Tuesday, July 21, 2015

Haynesville Rig Count: +1 to 22

Last week's Haynesville Shale rig count was up one to 22.  Louisiana was up one (Chesapeake) to 12, while Texas held at 10.


Friday, July 17, 2015

Penn Virginia Out of Haynesville

On Wednesday, Penn Virginia Corporation announced that it had agreed to sell its East Texas properties to an undisclosed buyer for $75 million.  The 33,400 net acres changing hands covers both the Cotton Valley and Haynesville Shale. Going forward, the company will concentrate its efforts on the Eagle Ford Shale.

Personally, I find PVA's exit is a little bittersweet because they were one of the first companies to register a Haynesville completion way back when I started collecting them.

U.S. Rig Count: -6 to 857

The Baker Hughes U.S. rig count was down six this week to 857.  Oil rigs were down seven to 638, gas rigs were up one to 218 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were down four to 650, vertical rigs were up two to 123 and directional rigs were down four to 84.  Among gas rigs, horizontal rigs were down one to 158, directional rigs were down two to 42 and vertical rigs were up four to 18.

Thursday, July 16, 2015

EIA: Gas in Storage +99 Bcf to 2.767 Tcf

The EIA announced another fat natural gas storage injection, as working gas in storage was up 99 Bcf to 2.767 Tcf.  The weekly injection was 6% below last year (+105 Bcf) but 39% higher than the five year average (+73 Bcf).  The current storage level is now 30.9% above last year (2.114 Tcf, a difference of 653 Bcf) and 2.7% above the five year average (2.694 Tcf, a difference of 73 Bcf).


Wednesday, July 15, 2015

Sabine Files Chapter 11

In a not terribly unexpected move, Sabine Oil and Gas filed voluntary Chapter 11 bankruptcy today.  This move sets up what might be an ugly fight in bankruptcy court as the debt holders from the old Sabine and Forest Oil get to face off against the company.

During bankruptcy, the company expects to continue to operate on existing cash flow and cash on hand.

Tuesday, July 14, 2015

Clearing a Backlog of Louisiana Completions

  • EMW 29-32 HC #2-ALT, BHP Billiton : 8.245 MMcf/day IP on 16/64 in. choke at 7,608 psi; Perfs: 11,656-17,077, length: 5,421 ft.; Caspiana Field, Caddo Parish, S20/T15/R12; res. A, serial #248054 
  • Waerstad 12-14-12 H #2-ALT, Chesapeake Operating: 12.769 MMcf/day IP on 20/64 in. choke at 6,500 psi; Perfs: 12,308-16,798, length: 4,490 ft.; Thorn Lake Field, Red River Parish, S12/T14/R12; res. A, serial #248325 

Monday, July 13, 2015

Uh Oh, EXCO

While I normally don't comment on stock performance, it is worth noting that EXCO Resources, which has been in a steady decline for the past two years, has officially entered The Danger Zone.  For the past seven days, the stock has closed at a bid price under $1.  After 30 days of this, they should expect a notice from NASDAQ giving them some period of time, usually 90 days, to get their minimum bid price back over a buck.  If that doesn't happen, they will be delisted and join Sabine Oil & Gas in OTC BB purgatory.  Ask Sabine how fun that is.

Haynesville Rig Count: +1 to 21

The Haynesville Shale rig count was up one this week as the Anadarko rig that briefly disappeared last week reemerged in Bossier Parish.  Will it be joined by more?  Louisiana was up one to 11, while Texas held at 10.


Friday, July 10, 2015

U.S. Rig Count: +1 to 863

The Baker Hughes U.S. rig count was up again this week, this time by one to 863.  Oil rigs were up (for the second straight week) by five to 645, gas rigs were down two to 217 and miscellaneous rigs were down two to one.  By type, horizontal rigs were down three to 654, directional rigs were down nine to 88 and vertical rigs were up 13 to 121.


Among gas rigs, horizontal rigs were down one to 159, directional rigs were down one to 44 and vertical rigs were unchanged at 14.

Thursday, July 9, 2015

EIA: Gas in Storage up 91 Bcf to 2.668 Tcf

Pretty big injection this week: the EIA reported that working gas in storage was up 91 Bcf to 2.668 Tcf.  The weekly injection was in line with last year (+94 Bcf), but 21% greater than the five year average (+75 Bcf).  The current storage level is now 32.8% above last year (2.009 Tcf, a difference of 659 Bcf) and 1.7% above the five year average (2.623 Tcf, a difference of 45 Bcf).


Tuesday, July 7, 2015

Haynesville Shale Rig Count: -1 to 20

Over the past two weeks, the Haynesville Shale rig count was down one to 20.  Louisiana was down one (Anadarko) to ten, while Texas held at ten.  The Louisiana count is tied for the lowest ever since the Haynesville play started kickin', and this is the first time since the peak that LA has as few rigs as TX.

Recent Texas Permits

6/11/15 - 7/6/15:
  • Charles SU #5H, EXCO Operating; Carthage Field (Haynesville Shale), Shelby Co., Survey: HT&B RR/WATERMAN, WM, A-1164 
  • Donatill SU #1H, EXCO Operating; Carthage Field (Haynesville Shale), Shelby Co., Survey: DONATILL, H, A-151 

Thursday, July 2, 2015

U.S. Rig Count: +3 to 862

Seems like old times:  oil rigs up, gas rigs down!  Oil rigs were up 12 this week to 640, while gas rigs were down nine to 219 and miscellaneous rigs were unchanged at three.  This week finally breaks the streak of 29 straight weeks of declining oil rigs, a period when the rig count fell from 1,575 to 628, a decrease of 947 rigs, or 60%.

By type, horizontal rigs were up three to 657, vertical rigs were up one to 108 and directional rigs were down one to 97.  Among gas rigs, horizontal rigs were down four to 160, directional rigs were down three to 45 and vertical rigs were down two to 14.

EIA: Gas in Storage +69 Bcf to 2.577 Tcf

The EIA announced this morning that working gas in storage was up 69 Bcf to 2.577 Tcf.  The weekly injection was 32% below last year (+102 Bcf) and 8% below the five year average (-75 Bcf).  The current storage level is now 34.6% above last year (1.915 Tcf, a difference of 662 Bcf) and 1.1% above the five year average (2.548 Tcf, a difference of 29 Bcf).



Friday, June 26, 2015

U.S. Rig Count: +2 to 859

Breaking a six month losing streak, the Baker Hughes U.S. rig count was up by two rigs this week to 859.  Oil rigs were still down - but only by three - to 628, gas rigs were up five to 228 and miscellaneous rigs were unchanged at three.  By type, horizontal rigs were down eight to 654, vertical rigs were up seven to 107 and directional rigs were up three to 98.  Among gas rigs, horizontal rigs were down one to 164, directional rigs were up four to 48 and vertical rigs were up two to 16.

Thursday, June 25, 2015

More New Louisiana Completions

  • FR Farms 10+3-15-11 HC #1-ALT, Chesapeake Operating: 13.104 MMcf/day IP on 20/64 in. choke at 6,519 psi; Perfs: 12,060-17,412, length: 5,352 ft.; Swan Lake Field, Bossier Parish, S10/T15/R11; res. A, serial #248193 
  • C E Peace 25 #2-ALT, J-W Operating: 7 MMcf/day IP on 16/64 in. choke at 5,975 psi; Perfs: 12,110-16,511, length: 4,401 ft.; Caspiana Field, DeSoto Parish, S24/T15/R13; res. A, serial #247423 

EIA: Gas in Storage +75 Bcf to 2.508 Tcf

The EIA announced this morning that working gas in storage was up 75 Bcf last week to 2.508 Tcf.  The injection was 13% lower than last year (+86 Bcf) and 32% below the five year average (+110 Bcf).  The current storage level is now 38.3% higher than last year (1.813 Tcf, a difference of 695 Bcf) and 1.4% above the five year average (2.473 Tcf, a difference of 35 Bcf.


Wednesday, June 24, 2015

Mid-Bossier Shale List Updated

I've updated the Mid-Bossier list of completions and map with two completions noted in investor materials by Chesapeake back in May.  Here is the official numbers on them (which I previously reported but didn't differentiate as Mid-Bossier):

  • CHK Min 28-10-13 H #2-ALT, Chesapeake Operating: 15.528 MMcf/day IP on 22/64 in. choke at 6,700 psi; Perfs: 11,884-16,337, length: 4,453 ft.; Converse Field, Sabine Parish, S28/T10/R13; res. Mid-Bos, serial #248565 
  • Bedsole 1-10-13 H #2-ALT, Chesapeake Operating: 15.024 MMcf/day IP on 20/64 in. choke at 6,948 psi; Perfs: 12,184-16,920, length: 4,736 ft.; Benson Field, DeSoto Parish, S1/T10/R13; res. Mid-Bos, serial #248807

Recent Louisiana Completions

  • EMW 29-32 HC #1-ALT, BHP Billton: 8.254 MMcf/day IP on 16/64 in. choke at 7,730 psi; Perfs: 11,720-17,019, length: 5,299 ft.; Caspiana Field, Caddo Parish, S20/T15/R12; res. A, serial #248053 
  • EMW 20-17 HC #1-ALT, BHP Billton: 9.43 MMcf/day IP on 16/64 in. choke at 7,303 psi; Perfs: 11,665-16,795, length: 5,130 ft.; Caspiana Field, Caddo Parish, S20/T15/R12; res. A, serial #248059 

Tuesday, June 23, 2015

Rig Map Updated

Bowing to pressure, I've updated the rig map.  Here is the link, and here is a frozen image (red stars are current, blue dots are from 5/15/15):

Monday, June 22, 2015

Haynesville Shale Rig Count Unchanged at 21

The Haynesville Shale rig count was unchanged at 21 last week.  Louisiana held at 11 (Chesapeake down one, Vine up one) and Texas held at 10.


Friday, June 19, 2015

Shale Isn't Going Away

A quick note for a Friday afternoon.  I have been reading lots of comments and headlines about bankruptcies, both actual and potential, in the oil and gas industry, particularly among companies focused on shale.  There is no doubt that there will a huge fallout from low oil and gas prices, but some doomsayers are suggesting that the whole "shale industry" will collapse.  To me, that's a terribly naive thought.  Yes, many companies will go under and thousands will lose their jobs, but the oil and gas resources aren't going anywhere and the technology is only improving. Picking up from the ashes is what we as Americans do very well (something I think the Saudis don't fully appreciate).  The players may change and the output may slow for a while, but the shale oil and gas industry be here for a long time.