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Permalink Reply by Doob on November 25, 2013 at 4:17

That seems correct for breakeven, meaning end of life revenue equals end of life expense, but nobody will drill for that. NPV10 (making a 10% return on investment) requires about $6/mcf for the average 5 BCF well. Realize that the very best wells (top 10%) may top the now clearly hyped early estimates of the "typical" 7 BCF well but most of the wells will not make 5 BCF. Most operators will want a 20% rate of return to drill. The very best wells will give that return at $4.50/mcf, but the 5 BCF well will require more than $8/mcf to return 20% and all those 3-4 BCF wells don't have a chance.

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Permalink Reply by dbob on November 25, 2013 at 12:28

Paul, Doob, 

I don't see much happening in the Haynesville proper in 2014, with the exception of some work to hold acreage .  I do see some potential for continued search for liquids (e.g. Anadarko and Chervron in Panola County), but I think that a lot of that search will happen somewhat south of the Hanyesville.  For instance, BBX just completed 2 nice wells near Jasper that are producing several hundred bbls of condensate/day.  Of course, this liquids production is much more "conventional" and spottier than the Haynesville.  

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