Enverus Blog

Insights across the energy value chain

Actually it is not really a question anymore, it’s a theme.  Unfortunatley for operators, rising completion costs (and I mean really rising) and low gas prices have moved this once prized asset towards the back of their portfolio.  I should clarify “once prized”, it isn’t like the gas is going anywhere it will still be  in the ground so when operators figure out more ways to cut costs and see some kind of rebound in the price, it will come back in favor.  At at least $9MM a pop, it is just really expensive right now.

That being said, I put together a chart showing how some of the bigger operators have compared against one another this year in terms of maximum monthly production.  Choking back wells has certainly affected rates, however from this chart it is only evident in the Petrohawk program.  Of course, when 2009 is compared against these 2010 values, more trends become evident.  But this entry is only dealing with 2010, so here are the 2010 new leases on a map and in chart form.

To Scale Back and To Choke Back, That Is The Haynesville Question

To Scale Back and To Choke Back, That Is The Haynesville Question

A few clarifications, the data is current through August 2010 however I did not include that month since those wells still need time to clean up.  Also, older leases with new wells on them are not included.  Keep checking back, send me comments or quips or concerns.

One more thing, Jason Simmons (Unconventional Analyst Extraordinaire) put together a really nice article for the December 2010 American Oil and Gas Reporter issue regarding Haynesville Trends.  I will see about publishing his article on the blog, not sure about legal issues, which is silly because he wrote it, oh well.

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