SHELL PUTS DOWN PERMANENT ROOTS IN HAYNESVILLE SHALE REGION -Shreveporttimes.com - Oct. 5, 2011

NEAR MANSFIELD — The size of the Haynesville Shale indicates Shell Energy will be active in the area for a long time to come, company officials said Tuesday as they welcomed invited guests to the grand opening of its Haynesville Operations Office and Warehouse Complex northeast of Mansfield.

The challenge this year has become improving operations efficiency in the wake of stagnant natural gas prices.

"The Haynesville Shale is deeper and more expensive "» but it's a great producer," said Russ Ford, executive vice president.

Shell officials believe they are meeting that challenge by moving from hop-scotch drilling to single pad operations where anywhere from four to eight natural gas wells are drilled.

So although the dwindling rig count may cause some to think the shale is waning, the number of wells being drilled is a better gauge. Shell has about 200 wells, said Paul Goodfellow, vice president of development.

"We enter these plays with a long-term view. We look at it in terms of decades," Goodfellow said of the company's future in the area. "I don't even know what the eventual well count will be."

Shell set up shop in temporary buildings in DeSoto Parish three years ago. Construction began earlier this year on a 40-acre site on state Highway 509 in the Carmel community that includes a 72-office administrative building and 14,400-square-foot warehouse with a 100-seat conference room and employee fitness center. It will serve as the company's headquarters for Haynesville Shale operations in DeSoto, Red River, Sabine and Natchitoches parishes.

The opening comes at a time when the shale is transitioning from exploration to development. As acreage is held to production, natural gas operators focus on production. The number of drilling rigs has declined this year throughout the region, but Shell maintains nine and expects to the same next year as it taps the underground mineral source in its 300,000-acre leasehold.

But even with natural gas prices hovering just below $4 mcf, the Haynesville Shale is still attractive. "This is one of the main producing fields out of seven we're involved in," Ford said. "The level of activity has been good over the years, and we expect it to remain." Shell also is drilling into the Bossier Shale, or upper Haynesville Shale as some operators call it.

"It's better to develop and stack plays together," Ford said. But as for those oil rumors, Ford isn't commenting, even though coffee shop talk in the area continues to spread word of perhaps a liquid component to the shale in the form of oil.

It's always possible, even though the Haynesville is more of a dry gas, he said. But with a grin, Ford said he couldn't comment on whether Shell is exploring the idea. He cited the competitive nature of the business.

He and other company officials readily boast, however, of Shell's improved operations efficiency that is essential to making the shale profitable. Said Ford: "There is an abundance of gas here, and to get it out economically has really changed the energy mix for us. "» It's a great opportunity for us."

Shell's presence also created jobs for one-third of the 76-person work force at the new office complex. The rest of the workers are close by, hailing from Shreveport to Natchitoches.

Summer interns have earned part-time and permanent positions. And area school children and technical college students have benefited through partnerships with Bossier Parish Community College and Sci-Port: Louisiana's Science Center.

"Our goal is to be a good community partner," operations manager James Blanton said, adding that more safety programs are in the works and will be introduced to the community in the coming months.

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A Big GHS Welcome to Shell!  Good News for NW LA.

DrWAVeSport Cd1 10/5/2011

All the major Haynesville players are building regional offices.  Here's a shot of Petrohawk's Haynesville Regional Headquarters at Dee and Preston streets in SE Shreveport.
We've started a complex for Chesapeake at I-49 and Hwy 84. It's only dirt at this time, but will soon have 2 office buildings and a shop facility located on 26 AC. Hopefully they will help bring some good jobs to the Mansfield area.

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