Monday, March 31, 2014

Haynesville Shale Rig Count: +2 to 27

The Haynesville Shale rig count was up two last week to 27.  Louisiana was up two to 19, while Texas held at eight.  Both new rigs were from Chesapeake, but they were rigs that dropped off the count for a week while changing locations.


Friday, March 28, 2014

U.S. Gas Rigs Down 8 to 318

The Baker Hughes U.S. rig count was up six this week to 1,809. Oil rigs were up 14 to 1,487, gas rigs were down eight to 318 and miscellaneous rigs were unchanged at four. This is the lowest number of operating gas rigs since May 1993, when natural gas was trading a little above $2/MMcf on a good day. By type, horizontal rigs were up five to 1,211, directional rigs were up one to 214 and vertical rigs held at 384. Among gas rigs, horizontal rigs were down seven to 236, directoinal rigs were up one to 51 and vertical rigs were down two to 31.

Thursday, March 27, 2014

EIA: Storage -57 Bcf to 896 Bcf

The EIA reported that working gas in storage was down 57 Bcf to 896 Bcf last week.  The withdrawal was 37% lower than last year (-90 Bcf) but six times greater than the five year average (-7 Bcf), which is starting to make the turn towards the injection season.  The current storage level is 50.1% below last year (1.795 Tcf) and 50.8% below the five year average (1.822 Tcf).


Temperatures in the Lower 48 last week averaged 43.1 degrees, which was 0.3 degrees warmer than last year and 1.7 degrees cooler than average.

Monday, March 24, 2014

New Texas Completions

  • CGU 23 #51HH, Anadarko E&P: 2.88 MMcf/day IP, 16.2 Bbl/day liquids, ?/64" choke, 2,415 psi; Perfs: 10,881-14,991, length: 4,110 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: SAMFORD, A, A-632 
  • CGU 13 #54HH, Anadarko E&P: 5.849 MMcf/day IP, 84.0 Bbl/day liquids, 20/64" choke, 415 psi; Perfs: 10,889-16,450, length: 5,561 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: HUGHES, HRS J, A-278 

Recent Louisiana Completions

  • Sample Et Al. 9 H #4-ALT, Petrohawk Operating: 8.457 MMcf/day IP on 15/64 in. choke at 2,149 psi; Perfs: 12,473-17,039, length: 4,566 ft.; Thorn Lake Field, Red River Parish, S9/T14/R11; res. A, serial #244844 
  • Sample Et Al. 4 H #7, Petrohawk Operating: 8.5 MMcf/day IP on 15/64 in. choke at 2,310 psi; Perfs: 12,710-17,240, length: 4,530 ft.; Thorn Lake Field, Red River Parish, S9/T14/R11; res. A, serial #244867 
  • Nabors 6 #4-ALT, EXCO Operating: 9.812 MMcf/day IP on 16/64 in. choke at ? psi; Perfs: 12,797-17,114, length: 4,317 ft.; Caspiana Field, DeSoto Parish, S6/T13/R12; res. A, serial #246642

Hot off the Press: DOE Approves Jordan Cove LNG Export

The Department of Energy announced this morning that it has approved the LNG Export facility at Jordan Cove in Coos Bay, OR for long-term contracts with non-free trade countries.  This ruling gives the owners the necessary approval to be able to finance and build the export facility.

The DOE approved export of 0.8 Bcf/day, as requested in the application.  The project is owned and developed by Calgary-based Veresen.

Haynesville Shale Rig Count: -2 to 25

The Haynesville Shale rig count was down two last week to 25.  Louisiana was down two to 17 (both Chesapeake in DeSoto), while Texas held at eight.


Recent Texas Permits

2/27/2014 - 3/23/2014:
  • Duke Rudman Gas Unit #Q 1H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: MARTIN, EL, A-898 
  • CGU 01-03 #73HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: HUGHES, HRS J, A-278 

Friday, March 21, 2014

U.S. Gas Rigs: -18 to 326, Lowest Since 1995

The Baker Hughes U.S. rig count was down six this week to 1,803.  Oil rigs were up 12 to 1,473, gas rigs were down 18 (!) to 326 and miscellaneous rigs held at four.  This is the lowest gas rig count since 5/5/1995, an interesting phenomenon given the current price of gas and the national storage deficit (at least vis-a-vis recent historical averages).  By type, horizontal rigs were down six to 1,206, vertical rigs were down nine to 384 and directional rigs were up nine to 213.  Among gas rigs, horizontal rigs were down 16 to 243, directional rigs were down two to 50 and vertical rigs were unchanged at 33.

Thursday, March 20, 2014

EIA: Storage -48 Bcf to 953 Bcf

I never thought I'd ever use Bcfs instead of Tcfs to quantify working gas in storage, but it just goes to show that you never know... The EIA reported today that working gas in storage last week dropped 48 Bcf to 953 Bcf. The withdrawal was 35% below last year (-74 Bcf) but 60% greater than the five year average (-30 Bcf).  The current storage level is 49.4% below last year (1.885 Tcf, a difference of 932 Bcf) and 47.9% below the five year average (1.829 Tcf, a difference of 876 Bcf).


Monday, March 17, 2014

Haynesville Rig Count: +1 to 27

The Haynesville Shale rig count was up one to 27 last week.  Louisiana was up one (Chesapeake, which is now running eight rigs) to 19, while Texas held at eight.  The Louisiana rig count is now the highest it has been since June 22, 2012 towards the end of the Great Rig Count Free Fall of 2012.


Chesapeake Files Preliminary Papers for Spin-Off of Oilfield Services Division

This morning, Chesapeake Energy filed a form 10-12SB with the SEC to register the shares of its wholly owned oilfield services company as a public entity as a first step in spinning it off.  This is a preliminary step and not a done deal (press releaseForm 10-12SB in PDF).

The new company will be called Seventy Seven Energy (no, I don't know why) and will include the handful of oilfield service companies Chesapeake accumulated back in the aughts back when vertical integration in the oilfield was in vogue. Vertical integration is a cyclical business strategy that works much better when commodity prices are high and business is strong.  If the energy market continues to improve, look for investment bankers to start badgering E&P companies buy suppliers again in a few years.

Friday, March 14, 2014

U.S. Rig Count: +17 to 1,809; Gas Rigs +1 to 344

The Baker Hughes U.S. rig count was up 17 rigs this week to 1,809.  Oil rigs were up 18 to 1,461, gas rigs were down one to 344 and miscellaneous rigs were unchanged at four.  The overall U.S. rig count hasn't been this high since November 2012.  At that time, the gas rig count was 424, while it's 344 today (-80 rigs, or -19%), showing the overall decline in gas rig count as a percentage of the whole over the past year and a quarter.

By type, horizontal rigs were up 10 to 1,212, vertical rigs were up one to 393 and directional rigs were up six to 204.  Among gas rigs, horizontal rigs were up two to 259, directional rigs were down two to 52 and vertical rigs were up one to 33.

Thursday, March 13, 2014

EIA: Storage -195 Bcf to 1.001 Tcf

The EIA reported this morning that working gas in storage decreased by 195 Bcf to 1.001 Tcf last week.  The weekly withdrawal was 34% greater than last year (-145 Bcf) and double the five year average (-95 Bcf).  Yawwwnnnn!  In any other year, this would be a huge development, but in this year of record withdrawals it seems about right.


The current storage level is now 48.9% below last year (1.959 Tcf, a difference of 958 Bcf) and 46.2% below the five year average (1.859, a difference of 858 Bcf).  Given our experience of the past five years, the chart showing the deviation from the five year average looks positively ridiculous, the mirror image of 2012:

Wednesday, March 12, 2014

Last Week's Louisiana Completions

  • Ratzburg 18 H #2-ALT, Petrohawk Operating: 7.482 MMcf/day IP on 14/64 in. choke at 1,947 psi; Perfs: 12,277-16,846, length: 4,569 ft.; Caspiana Field, Caddo Parish, S19/T15/R11; res. B, serial #246508 
  • Ratzburg 18 H #3-ALT, Petrohawk Operating: 7.705 MMcf/day IP on 16/64 in. choke at 1,975 psi; Perfs: 12,359-16,938, length: 4,579 ft.; Caspiana Field, Caddo Parish, S19/T15/R11; res. B, serial #246509 

Tuesday, March 11, 2014

Haynesville Rig Count Unchanged at 26

Last week's Haynesville rig count was unchanged at 26, but there was some shifting under the surface.  One Anadarko rig moved from Panola Co, TX to Bossier Parish, LA.  Also there was a new Chesapeake rig operating in Sabine Parish, LA, while another dropped out of DeSoto.  Interestingly, it was the first time in a very long time that Chesapeake used a non-NOMAC (house brand) rig.  Since the company is looking to sell its oilfield services division to become less vertically integrated, it makes sense to seek the best rig deals, even when it still owns the rig division.  Not sure if this is a one-off or a trend.


Friday, March 7, 2014

Gas Rigs: +10 to 345 This Week

The Baker Hughes U.S. rig count was up 23 this week to 1,792.  Oil rigs were up 13 to 1,443, gas rigs were up 10 to 345 and miscellaneous rigs held at four.  While ten rigs is a big move, last week's rig count was the lowest in a couple of decades, so there was room to run.  By type, horizontal rigs were up 21 to 1,202 (the highest count ever for hz rigs), vertical rigs were up one to 392 and directional rigs were up one to 198.  Among gas rigs, horizontal rigs were up eight to 257, directional rigs were down one to 54 and vertical rigs were up three to 34.

Thursday, March 6, 2014

EIA: Gas in Storage -152 to 1.196 Tcf

The EIA reported today that working gas in storage was down 152 Bcf last week to 1.196 Tcf.  The withdrawal was in line with last year (-149 Bcf) but 45% greater than the five year average (-105 Bcf).  The current storage level is 43.2% below last year (2.104 Tcf, a difference of 908 Bcf) and 38.8% below the five year average (1.954 Tcf, a difference of 758 Bcf).


Monday, March 3, 2014

Haynesville Rig Count: +1 to 26

The Haynesville Shale rig count was up one this week to 26.  Louisiana was up one (J-W Operating) to 17, while Texas held at nine.