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Permalink Reply by jffree1 on October 10, 2010 at 14:53

AL, Bishop and Drake in San Augustine and Boone in Shelby have rigs on them now. Hinton and Ironosa have had time to be completed but don't you think Ironosa has been waiting on pipeline? I don't know what the story might be on Hinton... it was finished drilling around the end of May or first week of June... plenty of time to complete it unless the pipeline isn't there.

Lewis, Clark & Crockett are probably waiting on completion. None have been finished drilling more that 8-10 weeks.

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Permalink Reply by ALongview on October 10, 2010 at 15:07

Thanks jffree1.
I wonder what the backlog is going to do to the supply situation overall?
I heard Petrohawk exec say that the wells should be costing $6.5 million at $4 gas instead of $10 million and service companies are charging as if gas was at $6. They also stated that they think that prices charged by well services will come down to reflect that in the near future. In your opinion will this be due to a slowdown in drilling or more competition coming to the market? A decrease would certainly help the smaller outfits that have to keep drilling to survive and may have something to do with the long waits.
On a positive note the Petrohawk exec also stated that the Haynesville/Bossier has 100 years worth of gas production in its future! That is an awesome thing.

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Permalink Reply by jffree1 on October 11, 2010 at 2:31

"I wonder what the backlog is going to do to the supply situation overall?"

I have wondered the same thing. Hopefully, some of the wells will be completed through the winter. I would appreciate comments about the number of drilled/uncompleted wells in inventory because it appears, to me, to be significantly higher than this time last year.

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Permalink Reply by Les Bamburg on October 11, 2010 at 3:10

Jffree1, I do not have specific numbers but several operators have commented about the well backlog waiting on frac crews. I believe this is related to a couple of factors. First, drilling times have been significantly reduced. Second, rig counts were increased. Third, the continuous wear and tear on the pumping equipment has resulted in more down time for maintenance. The situation should improve in 2011 as new pumping equipment becomes available and increases capacity.

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Permalink Reply by jffree1 on October 11, 2010 at 5:04

Thanks for your perspective, Les. It would seem that we need more companies competing to help keep prices down. Is there anything you've seen that indicates there might be additions to equipment inventory or new players in this market for pumping services?

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