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Permalink Reply by Skip Peel - Mineral Consultant on November 8, 2010 at 16:01

Even the most shallow of the HA wells in the northern reaches of the Play are dry gas. A few completions in the 18N townships were reported with a little condensate, 1-18 BCD(Barrels Condensate a Day).

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Permalink Reply by CypressKnees on November 9, 2010 at 3:16

Dear Skip,

Will it help the HS people to export to the UK?
http://uk.reuters.com/article/idUKTRE6A734Y20101108

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Permalink Reply by Skip Peel - Mineral Consultant on November 9, 2010 at 3:40

Somewhat. The market for LNG is global. And the Middle East producers have huge reserves of natural gas and a lower F&D (Finding and Developing) cost than domestic U.S. companies. Much depends on the strength of Europe's economic recovery and how soon shale gas assets are developed in Poland and Hungary. Shale deposits are ubiquitous world wide. Some portion will likely turn out to be commercially productive for shale gas. Natural gas available through a pipeline will probably always be cheaper than LNG transported by ship.

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Permalink Reply by adubu on November 10, 2010 at 6:04

China and India will be the largest consumer of NG in near few years and reason LNG will become export profit for the USA. This is reason foreign and Big oil is buying shale assets in USA at this cheap prices. Coal will lose out even with their lobbist fighting

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Permalink Reply by Skip Peel - Mineral Consultant on November 10, 2010 at 6:15

The Middle East gas producers will serve the bulk of the India and China market however those growing economies will support a healthy price for LNG world-wide no matter where it may originate. Do India and China have their own shale gas deposits? Industry pundits seem to think that foreign investment in U.S. shale plays is driven in large part by the desire to learn the development technology.

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Permalink Reply by MLE on November 10, 2010 at 6:23

China certainly has it's own shale gas deposits. I'm not sure about India, but I believe they do also. That's part of the reason Reliance and CONOOC have partnered up with companies here. They are getting a better understanding on the drilling and fracing techniques.

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Permalink Reply by Les Bamburg on November 9, 2010 at 4:30

CK, the LNG in the referenced article was not sourced from US production but rather was a re-export of LNG originally sourced from another country (Qatar, Yemen, Nigeria, etc).

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Permalink Reply by Les Bamburg on November 8, 2010 at 18:35

Tracy, much of the buzz around the Eagle Ford Shale is still in the gas shale area but produces condensate associated with the natural gas. Also, the produced natural gas is "rich" and is processed for removal of natural gas liquids (NGL's). The true oil shale area in the Eagle Ford Shale has challenging economics and has more limited drilling to date.

The oily part of the Barnett Shale is limited in area and controlled almost completely by EOG. Much of the produced "liquids" are condensate and NGL's rather than true oil.

There has been no oil production from the Haynesville/Bossier Shales to date.

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Permalink Reply by Tracy on November 8, 2010 at 18:49

Thank y'all for clearing that up. I was a little confused.

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Permalink Reply by MLE on November 10, 2010 at 3:35

Les,

Pioneer also has a large stake in the Montague oil window.

The more you know!

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Permalink Reply by Les Bamburg on November 10, 2010 at 3:51

MLE, thanks for the intel.

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Permalink Reply by P.G. on November 9, 2010 at 2:53

What's the going price for condensate and return after the costs of processing or separating it from NG?

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