Encana - Budget/economy won't affect early drilling in HS
EnCana: Budget Cut Won't Affect Early Drilling In Haynesville
Tuesday 11/11/2008 6:08 PM ET - Dow Jones News
Related Companies
Symbol Last %Chg
CNQ 41.05 -7.32%
ECA 43.83 -7.41%
SU 19.95 -9.54%
As of 12:44 PM ET 11/12/08
By Isabel Ordonez
Of DOW JONES NEWSWIRES
HOUSTON (Dow Jones)--EnCana Corp. (ECA) is pushing ahead with its exploratory drilling program in the promising Haynesville shale gas resource in Texas and Louisiana despite reining in spending next year, a top company executive said Tuesday.
North America's biggest natural gas producer has amassed a sizable acreage in this region, whose output could eventually hit 1 billion cubic feet a day, according to the company. EnCana has only started to drill test wells at the Haynesville and had expected to ramp up spending this year for extra wells before the financial crisis gripped markets in September.
"Plans have not changed. We have five rigs working in the Haynesville as we speak," said Jeff Wojahn, president of EnCana's U.S. arm, said in an interview with Dow Jones Newswires. "We are maintaining our activity in the Haynesville right now."
Wojahn, speaking at an industry conference in Houston, said the results of the drilling program will be analyzed during the fourth quarter. Depending on those results, EnCana will decide how to allocate its capital budget among the rest of its natural gas plays, he said.
EnCana has indicated it will cut spending next year from 2008's estimated $6.9 billion capital budget, though it hasn't said by how much. Last month, the company said it will focus on "capital preservation in these uncertain times."
Canadian Natural Resources Ltd. (CNQ) has slashed its 2009 budget in half, while oil sands heavyweight Suncor Energy Inc. (SU) has reduced its spending by a third.
EnCana is still deciding how much it will cut spending next year, Wojahn said.
"We don't know yet, but there are a lot of factors we are going to be taking in account," he said. The company will have a more detailed capital spending budget in December, he added.
-By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com
(Hyun Young Lee in Ottawa contributed to this story)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=6NlmY0aFxCN%2F%2BlgX8%2BRclQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
11-11-08 1807ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Tuesday 11/11/2008 6:08 PM ET - Dow Jones News
Related Companies
Symbol Last %Chg
CNQ 41.05 -7.32%
ECA 43.83 -7.41%
SU 19.95 -9.54%
As of 12:44 PM ET 11/12/08
By Isabel Ordonez
Of DOW JONES NEWSWIRES
HOUSTON (Dow Jones)--EnCana Corp. (ECA) is pushing ahead with its exploratory drilling program in the promising Haynesville shale gas resource in Texas and Louisiana despite reining in spending next year, a top company executive said Tuesday.
North America's biggest natural gas producer has amassed a sizable acreage in this region, whose output could eventually hit 1 billion cubic feet a day, according to the company. EnCana has only started to drill test wells at the Haynesville and had expected to ramp up spending this year for extra wells before the financial crisis gripped markets in September.
"Plans have not changed. We have five rigs working in the Haynesville as we speak," said Jeff Wojahn, president of EnCana's U.S. arm, said in an interview with Dow Jones Newswires. "We are maintaining our activity in the Haynesville right now."
Wojahn, speaking at an industry conference in Houston, said the results of the drilling program will be analyzed during the fourth quarter. Depending on those results, EnCana will decide how to allocate its capital budget among the rest of its natural gas plays, he said.
EnCana has indicated it will cut spending next year from 2008's estimated $6.9 billion capital budget, though it hasn't said by how much. Last month, the company said it will focus on "capital preservation in these uncertain times."
Canadian Natural Resources Ltd. (CNQ) has slashed its 2009 budget in half, while oil sands heavyweight Suncor Energy Inc. (SU) has reduced its spending by a third.
EnCana is still deciding how much it will cut spending next year, Wojahn said.
"We don't know yet, but there are a lot of factors we are going to be taking in account," he said. The company will have a more detailed capital spending budget in December, he added.
-By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com
(Hyun Young Lee in Ottawa contributed to this story)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=6NlmY0aFxCN%2F%2BlgX8%2BRclQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
11-11-08 1807ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Views: 129
Replies to This Discussion
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Permalink Reply by Wilmer Sparks on
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No, he doesn't. Art is a lead broker from Lafayette and it is my understanding from information that I was provided that his firm was handling T14N-R14W.
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Permalink Reply by insomniacnla on -
Thank you anyway. :)
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Permalink Reply by Randy on -
Wilmer, wouldn't let me reply under your post. The name is familiar to me, and they may very well have some work in the area. I haven't met them though, are they doing well sites, pipelines, abstracting, etc?
I don't have contact with all the different contractors of course, only the ones that are involved with what I do.
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Jay, we are in Sec. 7, 14-14 Desoto. Looking at your logs, do you think it is good
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Permalink Reply by kittycatmama on
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I have heard from another geologist who has viewed logs that 14 14 has 70-100 ft. of pay grade. That is supposedly one of the sweetest spots in Desoto.
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Permalink Reply by Eliza on
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I believe the Burford Well in Sec. 31 T15NR14W completed drilling 11/25/08. Do you have any information about this Chk well? What are Encana's plans with their leased 14-14 sec. 21,22,27?
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Permalink Reply by ELLIS HUGH on
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Do you think EnCana would let their current leases expire if they do not get good results from their current drilling operations? Would it benefit Encana to perform the neccessary operations to hold their active leases if they do not get the expected results from their current drilling? Or do you think they will let the leases expire or sell off some of their position in some areas?
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Permalink Reply by Joe Hahn on
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They already have in Martin. Really don't know why since this area seems to be a hot area in RRP for drilling.
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Permalink Reply by insomniacnla on
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So far, Sonris does not reflect the change. I keep checking it to see what other wells Encana may have taken over. I got my information from the new sign that Encana put up that replaced the one Sunland had. The sign also has the serial number to the San Patricio well.
In Section 11, J-W Operating unitized the section, Palmer Petroleum applied for the permit for the new Haynesville horizontal. The new road to the Palmer well has been put in and also gravel has been put down.
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Permalink Reply by insomniacnla on
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I have not driven down the road to the horizontal well yet but I was planning on taking a peek this afternoon after work. The horizontal is the Hervey well and that well road is in the northern most part of the section.
The Glen Rose shallow well road is in the southern most part of the section. The sign to this well was changed one day last week from Sunland to Encana.
I am very curious as to the outcome of the horizontal well as I am located in the section south east of it.
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