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 Gregg Hosey on
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Anyone heard of any action in sec5 15n 14w. Nothing showing on SONRIS.
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Permalink Reply by insomniacnla on -
Gregg,
You must have leased to JPD Energy, Caruthers or Empressa. I did check in the Caddo conveyance records, I saw where Caruthers and Empressa had some sort of farm-out agreement for Sec. 5 and another section. I did not get a chance to read it all.
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Thanks insomniac, but actually I leased to CHK in march of this year. Action all around me, maybe I`ll get lucky. Thanks again.
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Permalink Reply by Shelley on
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Hi, I was just reading all of ya'lls discussion. We are from San Augustine Texas. We signed with Encana late July. this is a very good company> just wondering if anyone has heard if they are getting any wells in our area anytime soon? we have been very pleased with Encana > Thanks for any information >>
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Permalink Reply by linda on
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Encana is drilling in the areas where they paid the least amount for the leases because it gives them a better profit margin. Just a little tidbit I got from their website.
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Permalink Reply by Two Dogs, Pirate on -
Plus those leases are due to expire first.
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