Thursday, July 9, 2009

Exxon: "We are really interested in shale gas"

...A direct quote from Exxon's head of global exploration, Tim Cejka. They also seem interested in flooding North America with LNG, but that's another story.

Today, Exxon touted results from the Horn River gas shale play in northern British Columbia. It says wells are testing at an IP of 16-18 Mmcf/day, on par with Haynesville wells. Here's the article from the Wall Street Journal. Exxon is a 50-50 partner with Canadian company Imperial Oil, Ltd. (of which Exxon owns 69.6%) in the Horn River play.

With all that excitement (and cash in the bank) might Exxon be gearing up for a Haynesville acquisition? In another article (print version), the WSJ says no. Because Exxon now has its own shale reserves it has even less reason to acquire a smaller competitor for its reserves. I only wonder if it will want to acquire reserves that are closer to the U.S. market, like in the Haynesville or Marcellus Shales.

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