Replies to This Discussion

Permalink Reply by Les Bamburg on October 12, 2008 at 10:02

KB, there are two LNG supply plants (export) already in Australia with several more planned. There are three LNG import terminals proposed for Oregon but none are likely to be built.

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Permalink Reply by Snake Stewart on October 12, 2008 at 8:57

If only half of the earlier leases were signed with this clause(I am being very conservative with the number), that would cut a huge chunk out of the number of wells needed to HBP.
Like a big "three for one sale".3 sections, one well.Makes it look a whole lot more plausable when its figured at 1920.If you feel they can do 640, then 1920 gives them room to start leasing again.

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Permalink Reply by Snake Stewart on October 12, 2008 at 10:08

Better to farm in then lose. I would but what do I know about how they think.The wheel is spinning but the hamster is dead.

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Permalink Reply by HBP on October 12, 2008 at 12:03

Sure, they can partner up all day long. But it won't change the amount of rigs capable of haynesville drilling. This is just my thought and I open it up to those that know more. How many rigs do we feasibly think will be availabe over the next 3 years or so for the Haynesville? I say rig availability is the fixed variable in this whole scenario.

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Permalink Reply by Les Bamburg on October 12, 2008 at 12:22

HBP, there are plenty of rigs available in the Rockies, Permian Basin, Fort Worth Basin & East Texas than can be shifted to the Haynesville Shale. Many of these rigs are under control of O&G companies that are active in the HS.

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Permalink Reply by Snake Stewart on October 12, 2008 at 13:29

A good point HBP but how much more of a rig does it take to drill another 600 to 800 feet from CV to Haynesville depths? Most of the early leases said nothing of depth protection anyway. Infrastructure has as more to do with this as rig count I believe. Why punch holes when you dont have a good way of moving it yet or a reason to sell it at current prices? Profit margin is down 1/2 by todays prices vs 3 months ago.

99% of everybody around here a year ago probably thought a pugh clause had something to do with what pew you could sit on in church.

There are several difficulties both sides face at the moment.One being a tremendous downturn in company stock brought about by the uncertainty of our banking institutes.Didnt have jack to do with the companies themself.Add the fact that the rigs aren't here yet and the cost of gas is down and it adds uncertainty to an already overloaded wagon.

BUT.... N/G isnt at an alltime low either.Nor is it even below the level of viability according to the O&G's.It isnt as profitable at $6.00 mcf but still not in the red.Not to mention that it cant stay low or our utilities would start going down and we certainly wont see a lot of that this winter.Saw on the news that our costs will go up 15% from last years bills on average.

Anybody else heard anything about the Chinese rigs being brought in and assembled here in the states? Haveing a lot of trouble with quality control issues.

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Permalink Reply by Two Dogs, Pirate on October 12, 2008 at 13:36

Snake, I have heard of chinese rigs working on American soil. Anyone can buy a oil, gas and mineral lease. What do we do when it comes to selling our mineral rights to others that may not have our best interest in play?

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Permalink Reply by Snake Stewart on October 12, 2008 at 13:48

From what I understand , they arent Chinese owned and operated.They are being purchased by American companies to try and offset the shortage
As to your question , I think it sux but we may no longer have much choice in the matter as they own more of this country then we do.They are already drilling the offshore zones right off our shores where we cant even drill because of the well ,whale watchers.HA!HA! Just kidin kinda my little nature freak friends.

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Permalink Reply by Lerret on October 13, 2008 at 14:26

I work for a different major company ... in Desoto parish, but no matter where we put our wells we will have to deal with Chesapeake ....

They have a well earned reputation as blood suckers among their peers. Aubrey got started by checking the unitization applications at the OGComm because his geologists (if he even had one) couldn't produce gas at a bean party. He then tried to bust leases and got a reputation, like Texas Oil & Gas before him as "corner shooters" ... Where's TXO now? Long gone. I predict 20 years from now, no one will know who Chesapeake was.

Further, CHK strategy is to buy everything in sight. They bought 1,100,000 acres in Arkansas and confessed that they will develop less than 300,000 of it. They even bought / leased the title companies to keep their competitors from running records. That slowed other players down. They buy all the tubing supplies. But in the end, their spending ways could be an anchor around their neck. Why? Lower prices hurt them more than their competitors and the credit freeze hits not only CHK but the people who construct those rigs and finance equipment purchases by contractors... It doesn't matter how much CHK wants to pay a drilling contractor if the DC doesn't have access to cash enough to pay his hired help.

Chinese have our scrap metal. We scrapped our rigs and sent to them. We have no engineers, very little engineering, too many MLP (multiple limited partnerships - drilling deals doomed to go sour for investors), the geologists are getting old and cranky. The young geologists don't know how to map without a computer doing the thinking...what a long strange trip it's gonna be....

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Permalink Reply by BirdDawg, plain ole' idiot on October 13, 2008 at 16:16

Lerret,
CHK seems to have pretty good results completing their wells. If you want to talk about incompetent geologist, I could name a few working for the small O& G independants in Shreveport that couldn't find oil in their carport under their cars.

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Permalink Reply by Two Dogs, Pirate on October 13, 2008 at 14:56

Snake I almost forgot about this post. The rig hand I talked to told me he was working on a Chinese owned drilling rig in OK. He said things worked a lot different on that rig.

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Permalink Reply by Snake Stewart on October 13, 2008 at 15:05

Hey Two Dogs, I cant for the life of me remember who is putting these rigs together but they said they are having a time with them.Well beggars cant be choosers.They need the rigs in here and this may be the cheapest way to do it.Certainly not the best. I will scratch my head while looking at the ceiling tonight in bed and figure out where my intel originated and get an update.Holler at me if you hear anything else until then.Have a good one 2D's.

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