Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 1, 2020 at 0:24

BP doesn't appear to be drilling natural gas wells in either state at this time.  BPX has not permitted a Haynesville well in LA since acquiring the BHP assets.  The company allowed the pending BHP well permits in 2018 to expire.

• ▶ Reply

Permalink Reply by John Smith on September 1, 2020 at 1:50

Thanks Skip...  Do you find it odd that BPX purchased this asset and has not done anything to develop in the Haynesville?

• ▶ Reply

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 1, 2020 at 1:57

You're welcome, John.  Do I find it surprising?  Only slightly so.  I do not think the Haynesville Shale was the focus of the BP acquisition.  I think BP was more interested in BHP's Permian and Eagle Ford oily assets.  As long as there is no downside to sitting on BPX's Haynesville reserves, I think they will do so.  BP does not have the debt service requirements of other Haynesville focused operators.  The company can wait until natural gas prices provide a good reason to restart a development program.

• ▶ Reply

Permalink Reply by John Smith on September 1, 2020 at 2:25

Thanks for your response...  

• ▶ Reply

Oil & Gas ProPermalink Reply by Rock Man on September 1, 2020 at 5:30

I agree that BP's priority as to BHP assets was the Permian Basin where they are trying to solidify their positive and production. I believe that the HV assets they acquired are mostly HBP (but not totally sure of this)

• ▶ Reply

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 1, 2020 at 5:32

Most likely 100% HBP (Held By Production).

• ▶ Reply