Tuesday, November 27, 2012

Encana Reawakening?

It looks like the sleeping Canadian giant may be reawakening in the Haynesville Shale, if only a little bit.  Earlier this month, Encana signed a long-term deal to supply Nucor with natural gas to fuel its steel making plants, especially the new facility being constructed in Convent, LA.  For the first time in ten months, Encana has filed for a new Haynesville permit in Sabine Parish (Terry Greer 16 H, serial #245693).  Encana last had an active rig in the play in May 2012.

It might be a little early to supply the Convent plant, but it is likely that any new gas supply for the facility will come from the Haynesville Shale.  If - and I'm not saying this will happen - Encana does add a rig to drill this well, it would be the first time the Louisiana Haynesville rig count has increased since XTO Energy added a rig in January 27, 2012.  But that increase was short lived as the company dropped all but one of its rigs six weeks later.

Man, it's hard to get even a small victory in the Haynesville these days!

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