Friday, September 19, 2014

U.S. Rig Count: Unchanged at 1,931 (But Gas Rigs -9)

The Baker Hughes U.S. rig count was unchanged this week.  Oil rigs were up nine to 1,601, gas rigs were down nine to 329 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were down one to 1,341, vertical rigs were up six to 378 and directional rigs were down five to 212.  Among gas rigs, horizontal rigs were down five to 241, directional rigs were down five to 59 and vertical rigs were up one to 29.

Recent Louisiana Completions

The following completions cover the past two weeks:
  • LSU 30 H #1, Petrohawk Operating: 8.46 MMcf/day IP on 16/64 in. choke at 7,125 psi; Perfs: 12,036-16,503, length: 4,467 ft.; Elm Grove Field, Bossier Parish, S31/T17/R12; res. A, serial #246245 
  • Evans 4 H (recomp) #1, Petrohawk Operating: 8.122 MMcf/day IP on 16/64 in. choke at 6,497 psi; Perfs: 12,084-16,514, length: 4,430 ft.; Caspiana Field, DeSoto Parish, S9/T14/R12; res. A, serial #240277 

Thursday, September 18, 2014

EIA: Gas in Storage +90 Bcf to 2.891 Tcf

The EIA reported this morning that working gas in storage was up 90 Bcf to 2.891 Tcf.  The weekly injection was 88% greater than last year (+48 Bcf) and 27% above the five year average (+71 Bcf). The current storage level continues to creep up.  It is 12.2% below last year (3.292 Tcf, a difference of 401 Bcf) and 13.3% below the five year average (3.335 Tcf, a difference of 444 Bcf).


Monday, September 15, 2014

Haynesville Rig Count: +1 to 28

The Haynesville Shale rig count was up one rig last week to 28.  Louisiana was up one (Petrohawk/BHP) to 21, while Texas held at seven.  Louisiana's Haynesville rig count is the highest it's been since June 2012 at the tail end of the Great Rig Migration.


Friday, September 12, 2014

U.S. Rig Count: +6 to 1,931

The Baker Hughes U.S. rig count was up six rigs this week to 1,931.  Oil rigs were up eight to 1,592, gas rigs were down two to 338 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were up nine to 1,342, vertical rigs were up four to 372 and directional rigs were down seven to 217.  Among gas rigs, horizontal rigs were down seven to 246, directional rigs were up three to 64 and vertical rigs were up two to 28.

Thursday, September 11, 2014

EIA: Gas in Storage +92 Bcf to 2.801 Tcf

The EIA announced this morning that working gas in storage was up 92 Bcf to 2.801 Tcf.  The weekly injection was 44% above last year (+64 Bcf) and 53% greater than the five year average (+60 Bcf).  The current storage level is now 13.7% below last year (3.244 Tcf, a difference of 443 Bcf) and 14.2% below the five year average (3.264 Tcf, a difference of 463 Bcf).


FERC Approves Cameron LNG

Yesterday, Cameron LNG, LLC received approval from the Federal Energy Regulatory Commission to build and operate facilities necessary to liquefy and export natural gas from its existing import terminal near Hackberry, LA.  FERC also approved the application to build pipeline and compression facilities to source the gas for export.  Until yesterday, only Cheniere's Sabine Pass facility has received this approval, which should be the last regulatory hurdle to constructing the facility.

The Cameron facility is expected to cost between $9 and $10 billion and be placed in service in 2017.  Plans call for three liquefaction trains, and the facility should be able to export a maximum of 2.33 Bcf/day when fully implemented.  Cameron LNG is majority owned by Sempra Energy Corp. in partnership with GDF Suez SA, Mitsubishi Corp. (through a related company jointly established with Nippon Yusen Kabushiki Kaisha) and Mitsui & Co. Ltd.

Wednesday, September 10, 2014

Haynesville Shale Rig Count: +1 to 27

Last week's Haynesville Shale rig count was up one to 27.  Louisiana was up one to 20 (Chesapeake), while Texas held at seven.


Friday, September 5, 2014

New Texas Completions

7/18/14 - 9/4/14:
  • Ural #B1SL, XTO Energy: 29.46 MMcf/day IP, 14/64" choke, 5,962 psi; Perfs: 11,950-17,526, length: 5,576 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: HALEY, MA, A-276 
  • Black Knights (SL) DU #H3, XTO Energy: 6.599 MMcf/day IP, 16/64" choke, 6,742 psi; Perfs: 13,310-19,263, length: 5,953 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: DOUTHIE, A, A-106 

U.S. Rig Count: +11 to 1,925

The Baker Hughes U.S. rig count was up 11 this week to 1,925.  Oil rigs were up nine to 1,584, gas rigs were up two to 340 and miscellaneous rigs held at one.  By type, horizontal rigs were up three to 1,333, vertical rigs were down six to 368 and directional rigs were up 14 to 224.  Among gas rigs, horizontal rigs were up five to 253, directional rigs were down four to 61 and vertical rigs were up one to 26.

New Texas Permits

7/7/14 - 9/3/14:
  • W.L. Liston #11H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: ROBERTS, H, A-562 
  • OB #H 1, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co. Co., Survey: MCKEY, TJ, A-473 

Thursday, September 4, 2014

Louisiana Completions (Since Mid-July)

OK, so I got behind reporting completions.  I assure you, I've been busy with other matters.  Here we go, dating back to July 23:

  • LP Garner Et Al. 5 H #1, XTO Energy: 8.9 MMcf/day IP on 32/64 in. choke at 7,100 psi; Perfs: 12,315-16,979, length: 4,664 ft.; Lake Bistineau Field, Bienville Parish, S5/T16/R9; res. A, serial #247138 
  • AR Collins 18 H #2-ALT, XTO Energy: 5.5 MMcf/day IP on 18/64 in. choke at 5,100 psi; Perfs: 10,977-15,330, length: 4,353 ft.; Lake Bistineau Field, Bienville Parish, S18/T16/R9; res. A, serial #247340 

EIA: Gas in Storage +79 Bcf to 2.709 Tcf

The EIA reported this morning that working gas in storage was up 79 Bcf to 2.709 Tcf. The weekly injection was 32% above last year (+60 Bcf) and 41% greater than the five year average (+56 Bcf). The current storage level is now 14.8% below last year (3.18 Tcf, a difference of 471 Bcf) and 15.4% below the five year average (3.204 Tcf, a difference of 495 Bcf).


Tuesday, September 2, 2014

Haynesville Shale Rig Count: -1 to 25

Last week's Haynesville Shale rig count was down one to 25.  Louisiana was down one (Chesapeake) to 19, while Texas held at seven.  In Texas, Nacogdoches Co. saw its first Haynesville rig since last November.


Friday, August 29, 2014

U.S. Rig Count: +18 to 1,914

The Baker Hughes U.S. rig count was up 18 this week to 1,914.  Oil rigs were up 11 to 1,575, gas rigs were up eight to 338 and miscellaneous rigs were down one to one.  By type, horizontal rigs were up nine to 1,330, vertical rigs were up eight to 374 and directional rigs were up one to 210.  Among gas rigs, horizontal rigs were up six to 248, directional rigs were up two to 65 and vertical rigs were unchanged at 25.

Thursday, August 28, 2014

EIA: Gas in Storage +75 Bcf to 2.63 Tcf

The EIA reported that working gas in storage was up 75 Bcf to 2.63 Tcf.  The weekly injection was 15% above last year (+65 Bcf) and 29% greater than the five year average (+58 Bcf).  The current storage level is now 15.7% below last year (3.12 Tcf, a difference of 490 Bcf) and 16.5% below the five year average (3.148 Tcf, a difference of 518 Bcf).


Monday, August 25, 2014

Haynesville Shale Rig Count: +1 to 27

The Haynesville Shale rig count was up one this week to 27.  Louisiana was up one to 20 (J-W), while Texas held at seven.


Friday, August 22, 2014

U.S. Rig Count: -17 to 1,896

The Baker Hughes U.S. rig count was down 17 rigs this week to 1,896.  Oil rigs were down 25 to 1,564, gas rigs were up nine to 330 and miscellaneous rigs were down one to two.  By type, horizontal rigs were down eight to 1,321, vertical rigs were down two to 366 and directional rigs were down seven to 209.  Among gas rigs, horizontal rigs were up seven to 242, directional rigs were up one to 63 and vertical rigs were up one to 25.

Thursday, August 21, 2014

EIA: Gas in Storage +88 Bcf to 2.555 Tcf

The EIA reported that working gas in storage was up 88 Bcf last week to 2.555 Tcf.  The weekly injection was 52% above last year (+58 Bcf) and 83% greater than the five year average (+48 Bcf).  The current storage level is now 16.4% below last year (3.055 Tcf, a difference of 500 Bcf) and 17.3% below the five year average (3.090 Tcf, a difference of 535 Bcf).


As the chart below shows, the 2014 storage deviation from the five year average (red line) continues to be a mirror image of the same data from 2012 (light blue line) when a warm winter badly shocked the storage numbers and crushed natural gas prices.

Monday, August 18, 2014

Haynesville Shale Rig Count: -1 to 26

The Haynesville Shale rig count was down one this week to 26.  Louisiana was down one (J-W Operating) to 19, while Texas held at seven.  And (for those of you with children who can sing the entire soundtrack from the movie "Frozen") for the first time in forever, I have updated the rig map.

Saturday, August 16, 2014

U.S. Rig Count: +5 to 1,913

This week's Baker Hughes U.S. rig count was up five to 1,913.  Oil rigs were up one to 1,589, gas rigs were up five to 321 and miscellaneous rigs were down one to three.  By type, horizontal rigs were up 12 to 1,329, vertical rigs were down ten to 368 and directional rigs were up three to 216.  Among gas rigs, horizontal rigs were up five to 235, directional rigs were up one to 62 and vertical rigs were down one to 24.

Thursday, August 14, 2014

It's Official: Shell is Out of the Haynesville Shale

Blackstone Group, LP announced today that it has acquired Royal Dutch Shell's Haynesville Shale interests for $1.2 billion.  Shell sold its rights to 107,000 net acres prospective for the Haynesville Shale that it owned as a JV partner of Encana.

Blackstone, which is a ginormous investment entity that is best known for its private equity operations, acquired the acreage through its subsidiary Blackstone Energy Partners in partnership with operator Vine Oil and Gas.  Vine is a Dallas-based company that was set up by Blackstone earlier this year with the intent of developing shale assets and is operated by a former Encana executive, Eric Marsh.  Mr. Marsh is likely familiar with the quality of the Haynesville assets from his Encana days.

Look for more deals from this partnership and others.  These are good times for private equity firms and independent operators to sweep up cast-off assets at reasonable prices.  At approximately $11,215 per acre for proven Haynesville acreage, I'd say Blackstone did alright.  As part of its yard sale, Shell also sold off assets in the Wyoming Pinedale to Ultra Petroleum in exchange for $925 million cash and 155,000 acres in the Marcellus and Utica Shales.

Last Week's Haynesville Rig Count Unchanged at 27

The Haynesville Shale rig count was unchanged at 27, but EXCO Resources moved its only Texas rig to Louisiana.  Louisiana now has 20 Haynesville rigs working - its highest level since June 15, 2012, the tail end of the Great Rig Count Crash of 2012 -  and Texas is down to seven.

EIA: Gas in Storage +78 Bcf to 2.467 Tcf

This morning, the EIA announced that working gas in storage was up 78 Bcf to 2.467 Tcf.  The weekly injection was 11% above last year (+70 Bcf) and 73% greater than the five year average (+45 Bcf).  The current storage level is now 17.7% below last year (2.997 Tcf, a difference of 530 Bcf) and 18.9% below the five year average (3.042 Tcf, a difference of 575 Bcf).


Monday, August 11, 2014

U.S. Rig Count: +19 to 1,908

The Baker Hughes U.S. rig count was up 19 last week to 1,908.  Oil rigs were up 15 to 1,558, gas rigs were up three to 316 and miscellaneous rigs were up one to four.  By type, horizontal rigs were up 19 to 1,317, vertical rigs were up five to 378 and directional rigs were down five to 213.  Among gas rigs, horizontal rigs were up one to 230, directional rigs were down five to 61 and vertical rigs were up seven to 25.