Monday, January 30, 2012

Encana Cutting Back in Haynesville?

So, I hear that Encana is ceasing much of its operations in the Haynesville Shale by mid-February and keeping a couple of rigs working in the play for the rest of the year.  The company has not confirmed this, therefore it is officially classified as a rumor, so take it with a grain of salt.

In its latest investment presentation, Encana doesn't foreshadow any big moves in the Haynesville.  Instead it features the play fairly prominently in its presentation.  Of course, I'm just reading it and have not had the benefit of attending the actual presentation, so they might be saying it's a piece of you know what.  But later in the presentation, management touts that it is running 21 rigs in the play through the company's JV with Shell (SWEPI).

I'm not sure where the truth lies, but it seems that most of the E&Ps are coming out with cutbacks in dry gas activity, so it would not be a surprise.  Encana seems intensely focused on developing oil and NG liquids resources along with completing the Kitimat LNG facility in western Canada, so I wouldn't blame them for heading towards the sidelines in the Haynesville to sit things out for a little while.

2 comments:

Anonymous said...

Encana is moving all rigs out of the LA Haynesville market. they currently have 6 rigs running, 5 will move out with 1 staying to drill ONE more well - then gone.

Anonymous said...

Shell is strongly rumored to reduce its rig count to 2 during first quarter of 2012.