Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 21, 2011 at 10:24

Considering that the HBP'ed reserves of dry gas, and the debt incurred to acquire them, are so large on the balance sheets of many energy companies, the majority that made a commitment to the Play in its early history, and some that declined to participate like Devon, do not see any compelling economic reason to continue major capital expenditures for additional reserves, neither for new leasehold acquisition nor for drilling programs to hold it.  It is telling that there are no farm-out opportunities for what is reasonably prospective acreage.  Dry gas is out and oil/liquids are in.  There may be a significant amount of acreage that is reasonably prospective for shale gas that will not be viewed as sufficiently economic to produce for a protracted period of time lacking some unforeseeable change in current market dynamics.

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Permalink Reply by ALongview on March 21, 2011 at 10:43

The Haynesville/Bossier may in the end become a 5 or 6 player game.  Exxon/XTO, Shell/Encana, Chesapeake, Petrohawk, EOG, and EXCO.

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Permalink Reply by Skip Peel - Mineral Consultant on March 21, 2011 at 11:05

I think you are correct that there will be consolidation through acquisition and possibly some through merger.  In the end I believe it highly likely that much of the shale gas reserves will end up in the inventory of the major oil companies.  They have the cash to acquire the reserves and their long term corporate time horizon will span any period of depressed price environment.  I think all the majors see natural gas as a significant and growing part of their future operations and profits.

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Permalink Reply by ken hatcher on March 21, 2011 at 13:13

Comstock has the assets to survive but it Is really rocky right now.

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Permalink Reply by ALongview on March 21, 2011 at 13:41

Cabot just did 3 JV's to try and hold their acreage and SM Energy had a carry and earning agreement with Encana to hold theirs.  There is no doubt there are many that are doing whatever they can to get the acreage HBP. Some just can't get er done for one reason or another. Too bad though because there are really good areas that will get left behind until we see gas at $6+ for a long time.

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Permalink Reply by JHH on March 21, 2011 at 14:17

Help me out here.  I've never heard of Crimson.  Never seen a well in panola or harrison county with the name Crimson attached. What and where is Crimson giving up.  How deep?  thanks

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Permalink Reply by JHH on March 21, 2011 at 14:21

Sorry,

Just captured this on the Crimson web page.

East Texas
 

Proved Reserves @ 12/31/09	1.6 Bcfe
% Natural Gas & NGL's	100%
Average WI	38%
Productive Wells (gross/net)	1.0 / 0.52
Developed Acreage (gross/net)	512 / 362
Undeveloped Acreage (gross/net)	16,739 / 11,582
3P Drilling Locations	422
Q4 2009 Average Daily Production (Mcfe)	3,300
Key Operated Field(s):
San Augustine, Sabine
Target Formation(s):
Haynesville Shale, Mid-Bossier, James Lime

 

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