Friday, November 13, 2009

EnCana Q3 Update

EnCana led its quarterly earnings call by noting that it had shut in or curtailed approximately 500 MMcf/day of gas production companywide in the third quarter because of low commodity prices.  EnCana expects to bring these streams back online this winter. 

Unfortunately, EnCana didn't spend a lot of time addressing the Haynesville Shale in its third quarter announcement or conference call.  It noted that the company drilled 12 net wells (I assume that means about 24 gross wells since most of the company's land is under a 50/50 deal with Shell) at an approximate cost of $8 million.  The company is seeing daily net production of about 130 MMcf (260 MMcf gross I assume), although presumably part of that has been curtailed because of low gas prices. 

In terms of 2010 capital budget, EnCana will allocated $750 million to the Haynesville Shale, a figure that represents 40% of the company's U.S. budget and around 19% to 21% of the total capex budget of $3.6 to $3.9 million (all figures $US).

No comments: