Thursday, July 16, 2009

QueSTAR!

Reading the Wall Street Journal today, I noticed a blurb about investment bank Tudor Pickering & Holt upgrading Questar Corp. to a buy. The TP&H analyst said that Questar's holdings in the Haynesville Shale are "going to be bigger and more impactful sooner that Wall Street realizes." That's pretty strong, especially given that Questar only has about 31,000 acres under lease.

What's good about Questar's position is that its acreage is fairly tightly bunched in the southern Caddo/Bossier Parish region, and it is in the same area where it already drills the Cotton Valley and Hosston formations. The company has been producing in the area for years, so it knows the area and has infrastructure in place. Questar also is a quiet partner with Petrohawk in some of the bigger wells in the Haynesville Play.

The company picked its spots and is poised to do well.

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