Tuesday, January 17, 2012

Only One New Texas Permit This Week

Not much new Haynesville Shale permit activity in Texas for the past month.  Running out of ideas or just a slow filing time?

1/9/12 - 1/16/12:

  • CGU 10 #53HH, Anadarko E&P; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: DUNCAN, S, A-158

3 comments:

Anonymous said...

Robert - thanks as always for maintaining a top-notch blog. Question: any idea what's going on with the permit count in the HS in LA? 275 at last count, up from a low in Sep near 200 and nearing 6-month highs. Any thoughts there? Much appreciation in advance.

Robert Hutchinson said...

Mystery Writer - First, thanks for the nice words. Second, in terms of permits: I don't follow permits in LA closely so I can't quote numbers, but my sense is that if you are seeing an increase in permits that there are a lot of what I would call "batch permits," where a producer permits a bunch of alternate wells from a single node.

A few months ago, Petrohawk (BHP Billiton) had a flurry of permits even though the company's rig count was decreasing slightly at the time. I guess it is simpler to go through the regulatory process once with the alternate wells even if you don't plan to drill right away. I've heard rumors that Petrohawk is looking to expand their rig count in the coming year, but until I see new rigs in action, I'll count it as hearsay.

On the other hand, I am not optimistic that gas prices will be anything but depressed for the next two years, so a lot of permit activity doesn't make much sense.

Robert Hutchinson said...

Also, if you're referencing the number of permitted but not drilled wells, you need to consider that the rig count has been dropping steadily, so the undrilled inventory is dwindling slower than before.