Friday, August 30, 2013

U.S. Rig Count Unchanged at 1,776

The Baker Hughes U.S. rig count was unchanged at 1,776 this week.  Oil rigs were up six to 1,388, gas rigs were down seven to 380 and miscellaneous rigs were up one to eight.  By type, horizontal rigs were up three to 1,078, vertical rigs were up five to 450 and directional rigs were down eight to 248.  Among gas rigs, horizontal rigs were down eight to 255, directional rigs were unchanged at 65 and vertical rigs were up one to 60.

Two Recent Louisiana Completions

  • Sebastian 11 HZ #3-ALT, Comstock Oil & Gas: 7.706 MMcf/day IP on 14/64 in. choke at 7,822 psi; Perfs: 11,950-16,388, length: 4,438 ft.; Benson Field, DeSoto Parish, S11/T10/R13; res. A, serial #245959 
  • Sebastian 11 HZ #4-ALT, Comstock Oil & Gas: 7.629 MMcf/day IP on 14/64 in. choke at 7,894 psi; Perfs: 11,949-16,270, length: 4,321 ft.; Benson Field, DeSoto Parish, S11/T10/R13; res. A, serial #245960

Thursday, August 29, 2013

EIA: Storage +67 Bcf to 3.13 Tcf

The EIA reported that working gas in storage was up 67 Bcf this week to 3.13 Tcf.  The weekly injection was in line with last year (+64 Bcf) and the five year average (+66 Bcf).  The current storage level is 7.0% below last year (3.365 Tcf) but 1.5% above the five year average (3.085 Tcf).


Wednesday, August 28, 2013

Larchmont and Chesapeake

I've been asked about letters some people have received recently from Chesapeake Energy to assign a partial interest to Larchmont Resources, LLC.  Larchmont, along with Jamestown Resources, LLC and Arcadia Resources, LP are owned by former CEO Aubrey McClendon and house his 2.5% interest in all wells Chesapeake drills through mid-2014, a super cool perk called the Founder's Well Participation Program.  The infamous FWPP and all of its related financing deals brought lots of pressure on McClendon because of perceived conflicts of interest.  Here is an article from a few months ago that explains it all.

Tuesday, August 27, 2013

Last Week's Louisiana Completions

Note: because I am a bit delinquent in publishing last week's data, I'll wait to update the completions spreadsheet until I add this week's completions sometime later this week.
  • E H White Et Al. 26 #2-ALT, J-W Operating: 7.551 MMcf/day IP on 14/64 in. choke at 1,058 psi; Perfs: 11,540-15,964, length: 4,424 ft.; Caspiana Field, DeSoto Parish, S26/T15/R13; res. A, serial #245867 
  • Range 34 #1-ALT, EXCO Operating: 13.096 MMcf/day IP on 16/64 in. choke at 7,933 psi; Perfs: 12,696-16,786, length: 4,090 ft.; Caspiana Field, DeSoto Parish, S34/T14/R12; res. A, serial #245915 

Sunday, August 25, 2013

Haynesville Shale Rig Count: +2 to 29

The Haynesville Shale rig count was back up two this week to 29.  Louisiana was up one (EXCO) to 16 and Texas was up one (Encana) to 13.

This week marks the return of Encana to Texas, where it last drilled in May 2012.  This new rig brings Encana's rig count to five, which is now second highest in the Haynesville.  Pretty good for an operator that was not drilling here as recently as November 2012.  This week also marks the return of Nacogdoches County, TX to the map.  We last saw drilling activity there in June 2012.


Friday, August 23, 2013

U.S. Rig Count: -15 to 1,776

The Baker Hughes U.S. rig count was down 15 this week to 1,776.  Oil rigs were down 15 to 1,382, gas rigs were down one to 387 and miscellaneous rigs were up one to seven.  By type, horizontal rigs were down two 1,075, vertical rigs were unchanged at 445 and directional rigs were down 13 to 256.  Among gas rigs, horizontal rigs were down two to 263, directional rigs were down three to 65 and vertical rigs were up four to 59.

Thursday, August 22, 2013

EIA: Storage +57 Bcf to 3.063 Tcf

The EIA natural gas storage report showed a 57 Bcf increase this week, bringing the working gas in storage to 3.063 Tcf.  The weekly injection was 33% higher than last year (+43 Bcf) and in line with the five year average (+56 Bcf).  The current storage level is now 7.2% below last year (3.301 Tcf) and 1.5% above the five year average (3.019 Tcf).


Temperatures in the Lower 48 averaged 73.0 degrees last week, which was 2.9 degrees cooler than last eyar and 1.4 degrees cooler than average.

Monday, August 19, 2013

The Mexicans are Coming!

I've been casually following the news that Mexico's state oil company Pemex will overhaul its bloated, declining self and enter the 21st century.  That will be interesting to watch.  I read this morning that as part of this reinvention, Pemex will create a new subsidiary to invest in U.S. projects focused on shale gas, shale oil and deep water.  In terms of shale investments, Pemex will act as an investor, not an operator, since the company has no experience in shale.

This is interesting on several levels.  First, Pemex would employ the Chinese model to pay to learn the shale game.  Unfortunately, they are several years behind the other national oil companies that have snapped up big JV deals in key shale plays.  The good news for Pemex is that it is looking to invest at a time when the prices to play have decreased significantly from when the Asian companies were cutting checks.  This could also provide a boon to the shale producers out there shopping JV deals.

Only One New LA Completion Reported in Two Weeks

Louisiana has been very light in reported new completions this summer.  There's only been one reported in the past two weeks and three total in the past five weeks.  Given that rig counts have been steady and somewhat higher than previous months, I assume that there will be a flood of new completions coming soon.  When I say "flood" I mean that relative to the current rig count and not compared to the +/- 20 completions per week reported per week two or three years ago.  Here is this week's completion:

  • Hunter 26-15-15 H #5-ALT , Chesapeake Operating: 13.68 MMcf/day IP on 22/64 in. choke at 5,979 psi; Perfs: 11,777-16,297, length: 4,520 ft.; Caspiana Field, Caddo Parish, S26/T15/R15; res. A, serial #245504

Sunday, August 18, 2013

Haynesville Shale Rig Count: -2 to 27

The Haynesville Shale rig count was down two last week to 27.  Louisiana was down one to 15, while Texas was down one to 12.

Friday, August 16, 2013

U.S. Rig Count: +13 to 1,791

The Baker Hughes U.S. rig count was up 13 this week to 1,791.  Oil rigs were up 13 to 1,397, gas rigs were up two to 388 and miscellaneous rigs were down one to six.  By type, horizontal rigs were up 12 to 1,077, vertical rigs were down two to 445 and directional rigs were up three to 269.  Among gas rigs, horizontal rigs were unchanged at 265, directional rigs were down three to 68 and vertical rigs were up five to 55.

Thursday, August 15, 2013

EIA: Storage +65 Bcf to 3.006 Tcf

Working gas in storage crossed the 3 Tcf mark this week with a robust 65 Bcf injection, bringing the storage level to 3.006 Tcf.  The weekly injection was more than triple last year's (+20 Bcf) and 55% greater than the five year average (+42 Bcf).  The current storage level is 7.7% below last year (3.258 Tcf) but 1.5% above the five year average (2.963 Tcf).


This week's storage report is the second week since the beginning of April 2013 that the current storage level has been higher than the five year average (admittedly, a low bar given the fact that each successive year for the past three have brought new record high storage amounts), as shown below:

Tuesday, August 13, 2013

New Mercedes? Make Mine Natural Gas


Mercedes-Benz has announced that it will introduce a natural gas version of its E Series sedan, the E 200 Natural Gas Drive (more here).  The car will run on both conventional gas and natural gas. While it appears that the E 200 is a European model for now, I suspect/hope it won't be long before it graces our North American shores.

Monday, August 12, 2013

Haynesville Shale Rig Count: Unchanged at 29

The Haynesville Shale rig count was unchanged this week at 29.  Boooorrring!  Louisiana held at 16 as did Texas at 13.


Friday, August 9, 2013

Three Reasons to Love the Haynesville Shale

Those following the ups and downs of the shale oil and gas industry sometimes need to keep a scorecard to figure out what's going on.  There are new revelations and talk of hot new plays every couple of months.  It feels like the industry has lost interest in the Haynesville.  But reading a recent article about the difficulties faced by companies seeking riches in the Utica Shale in Ohio makes me remember why the Haynesville is a special formation and why it will be an iconic play long into the future.

1. The geology is really good.  Sure, natural gas is on the outs right now because of its low price and the sexiness of oil, but the confluence of positive geologic characteristics deep under the ground in NW Louisiana and E Texas are pretty unique and will be compelling to drillers for a long time.

Haynesville Shale Rig Count +2 to 29 - Last Week

[I'm still catching up from vacation, so this is the rig count from last week]
The Haynesville Shale rig count was up two last week to 29.  Louisiana held at 16 while Texas was up two (EOG and Valence) to 13.  This is the highest rig count in Texas for exactly one year (last at 13 on 8/3/12).  This is the highest Haynesville rig count since July 6, 2012.


U.S. Rig Count: -4 to 1,778

The Baker Hughes U.S. rig count was down four this week to 1,778.  Oil rigs were down three to 1,385, gas rigs were down two to 386 and miscellaneous rigs were up one to seven.  By type, horizontal rigs were down eight to 1,065, vertical rigs were up 15 to 447 and directional rigs were down 11 to 266.  Among gas rigs, horizontal rigs were up four to 265, directional rigs were down seven to 71 and vertical rigs were up one to to 50.

Thursday, August 8, 2013

Third Gulf Coast LNG Export Facility Approved by DOE

I go out of town for a week and the DOE tries to slip another LNG export facility approval by me! The latest approval is for approximately 2 Bcf/day from Lake Charles Exports, LLC, a joint venture of BG Group (partners with EXCO Resources in the Haynesville Shale) and Energy Transfer Equity, LP, which purchased Southern Union Co., the original partner, last year.  The approval is to export gas to countries that don't have free trade agreements with the U.S.  The facility still needs FERC approval, but that shouldn't be quite the same politicized soap opera.

The Lake Charles facility would be built in three trains on the existing Trunkline LNG import facility, which is already connected the natural gas "grid" through existing pipeline infrastructure.



EIA: Storage up 96 Bcf on Mild Weather

The EIA reported this week that working gas in storage was up 96 Bcf to 2.941 Tcf.  The injection was 284% greater than last year (+25 Bcf) and 129% above the five year average (+42 Bcf).  With this large injection, the current storage level is now only 9.2% below last year and 0.7% above the five year average.  This week marks the first time the current level has been greater than the five year average since March 2013.



Tuesday, August 6, 2013

Off the Farm

Updates are going to be slow this week, as I am on vacation with the family, and the kids frown on "work" when there is swimming to do.

Friday, August 2, 2013

U.S. Rig Count: +6 to 1,782 (Gas Rigs Up 19!)

The Baker Hughes U.S. rig count was up by six this week to 1,782.  Oil rigs were down 13 to 1,388, gas rigs were up 19 to 388 and miscellaneous rigs were unchanged at six.  Over the past six weeks, gas rigs are up by 39, or 11%.  By type, horizontal rigs were up six to 1,073, vertical rigs were up ten to 432 and directional rigs were down 10 to 277.

Among gas rigs, horizontal rigs were up seven to 261, directional rigs were unchanged at 78 and vertical rigs were up 12 to 49.  The one week increase in vertical gas rigs was 32%!  While that seems like an awful lot, last week's count of 37 vertical gas rigs was the low for the year and 49 makes more sense relative to the count year-to-date.

Two Texas Completions from Wells Drilled Long Ago

7/18/13 - 8/1/13:

The two completions below were from wells permitted and drilled a while back.  The "Wells" completion finished drilling February 14, 2011 (Happy Valentine's Day!) and the "Woodley" well finished drilling on October 20, 2009.  They were both classified as "unperfed completions" for a few years and finally completed in June 2013.  They were originally drilled when Sabine was still NFR Energy, and the Woodley W-1 still shows the NFR name.

Thursday, August 1, 2013

A Bunch of New Anadarko Permits in Panola Co., TX

7/18/12 - 8/1/13:
  • CGU 12 SA #71HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: WHITE, JA, A-749 
  • CGU 10 SA #71HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: DUNCAN, S, A-158 

New Louisiana Completions

  • Black Stone 12-7 HC #1-ALT, Encana Corp.: 16.988 MMcf/day IP on 23/64 in. choke at 8,141 psi; Perfs: 12,843-18,470, length: 5,627 ft.; Bracky Branch Field, Red River Parish, S1/T13/R10; res. B, serial #245903 
  • Black Stone 12-7 HC #2-ALT, Encana Corp.: 17.071 MMcf/day IP on 23/64 in. choke at 8,013 psi; Perfs: 13,106-19,472, length: 6,366 ft.; Bracky Branch Field, Red River Parish, S1/T13/R10; res. B, serial #245904

EIA: Storage +59 Bcf to 2.845 Tcf

The EIA reported that working gas in storage was up 59 Bcf to 2.845 Tcf.  The injection was more than double last year (+28 Bcf) and 26% higher than the five year average (+47 Bcf).  The current storage level is now 11.5% below last year (3.213 Tcf) and 1.2% below the five year average (2.879 Tcf).