Monday, February 15, 2010

Peak Shale?

Another article in the Houston Chronicle based on stock analyst research suggested that production rates in the Haynesville Shale have peaked and that the core of the play is smaller than originally assumed.  More troubling is the suggestion that the breakeven natural gas price for Haynesville profitability is in the $7/Mcf range. 

I haven't seen the full report, but there are definitely lots of opinions out there.  I always take stock analyst reports with a grain of salt for a number of reasons, but it will be interesting to see how the "core area" changes over the course of the year.  Just today, a reader commented to me on the changes to the EnCana core map between August 2009 and February 2010.  I'm going to keep my eyes open for new core area maps.

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