Encana - Budget/economy won't affect early drilling in HS
EnCana: Budget Cut Won't Affect Early Drilling In Haynesville
Tuesday 11/11/2008 6:08 PM ET - Dow Jones News
Related Companies
Symbol Last %Chg
CNQ 41.05 -7.32%
ECA 43.83 -7.41%
SU 19.95 -9.54%
As of 12:44 PM ET 11/12/08
By Isabel Ordonez
Of DOW JONES NEWSWIRES
HOUSTON (Dow Jones)--EnCana Corp. (ECA) is pushing ahead with its exploratory drilling program in the promising Haynesville shale gas resource in Texas and Louisiana despite reining in spending next year, a top company executive said Tuesday.
North America's biggest natural gas producer has amassed a sizable acreage in this region, whose output could eventually hit 1 billion cubic feet a day, according to the company. EnCana has only started to drill test wells at the Haynesville and had expected to ramp up spending this year for extra wells before the financial crisis gripped markets in September.
"Plans have not changed. We have five rigs working in the Haynesville as we speak," said Jeff Wojahn, president of EnCana's U.S. arm, said in an interview with Dow Jones Newswires. "We are maintaining our activity in the Haynesville right now."
Wojahn, speaking at an industry conference in Houston, said the results of the drilling program will be analyzed during the fourth quarter. Depending on those results, EnCana will decide how to allocate its capital budget among the rest of its natural gas plays, he said.
EnCana has indicated it will cut spending next year from 2008's estimated $6.9 billion capital budget, though it hasn't said by how much. Last month, the company said it will focus on "capital preservation in these uncertain times."
Canadian Natural Resources Ltd. (CNQ) has slashed its 2009 budget in half, while oil sands heavyweight Suncor Energy Inc. (SU) has reduced its spending by a third.
EnCana is still deciding how much it will cut spending next year, Wojahn said.
"We don't know yet, but there are a lot of factors we are going to be taking in account," he said. The company will have a more detailed capital spending budget in December, he added.
-By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com
(Hyun Young Lee in Ottawa contributed to this story)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=6NlmY0aFxCN%2F%2BlgX8%2BRclQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
11-11-08 1807ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Tuesday 11/11/2008 6:08 PM ET - Dow Jones News
Related Companies
Symbol Last %Chg
CNQ 41.05 -7.32%
ECA 43.83 -7.41%
SU 19.95 -9.54%
As of 12:44 PM ET 11/12/08
By Isabel Ordonez
Of DOW JONES NEWSWIRES
HOUSTON (Dow Jones)--EnCana Corp. (ECA) is pushing ahead with its exploratory drilling program in the promising Haynesville shale gas resource in Texas and Louisiana despite reining in spending next year, a top company executive said Tuesday.
North America's biggest natural gas producer has amassed a sizable acreage in this region, whose output could eventually hit 1 billion cubic feet a day, according to the company. EnCana has only started to drill test wells at the Haynesville and had expected to ramp up spending this year for extra wells before the financial crisis gripped markets in September.
"Plans have not changed. We have five rigs working in the Haynesville as we speak," said Jeff Wojahn, president of EnCana's U.S. arm, said in an interview with Dow Jones Newswires. "We are maintaining our activity in the Haynesville right now."
Wojahn, speaking at an industry conference in Houston, said the results of the drilling program will be analyzed during the fourth quarter. Depending on those results, EnCana will decide how to allocate its capital budget among the rest of its natural gas plays, he said.
EnCana has indicated it will cut spending next year from 2008's estimated $6.9 billion capital budget, though it hasn't said by how much. Last month, the company said it will focus on "capital preservation in these uncertain times."
Canadian Natural Resources Ltd. (CNQ) has slashed its 2009 budget in half, while oil sands heavyweight Suncor Energy Inc. (SU) has reduced its spending by a third.
EnCana is still deciding how much it will cut spending next year, Wojahn said.
"We don't know yet, but there are a lot of factors we are going to be taking in account," he said. The company will have a more detailed capital spending budget in December, he added.
-By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com
(Hyun Young Lee in Ottawa contributed to this story)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=6NlmY0aFxCN%2F%2BlgX8%2BRclQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
11-11-08 1807ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Views: 129
Replies to This Discussion
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Permalink Reply by kittycatmama on -
Encana seems to be concentrating their drilling activities in Gloster, Keathie areas. They are pooling 8 sections at a time.
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Permalink Reply by Joe Hahn on
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They have many more than that in Red River Parish, but with the economy as it is, they are slowing down their activity until it improves.
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Permalink Reply by insomniacnla on
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Encana seems to be pretty active in other areas. Encana also filed to unitize Sections 23, 24, 27, 26, 25, 34, 35 and 36 in 15n 14w in DeSoto Parish.
I also noticed that an existing well in Sec. 11, 15n 14w has a new sign up that states that Encana now owns that well. The previous owner was Sunland and before that, Caruthers Producing, who originally drilled the well.
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Permalink Reply by The_Baron on -
The change in operator you speak off for sec 11 hasn't shown up on SONRIS yet. But I did notice a horz. well permited on oct. 23 by Palmer Pet.
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Permalink Reply by kittycatmama on
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Encana bought all the deep rights to Sunland stuff in Sec. 21 15n 14w
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Permalink Reply by kittycatmama on
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Rumors in Sec. 21 15 14 say Encana is going to drill where flags are just east of rodeo arena. I can't find anything on Sonris, but a lot of landowners in that section say the rig will go up in Dec.
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Permalink Reply by Randy on
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The story I have is that the wells that are currently being drilled are what is going to determine 2009 drilling. If they don't show up pretty big, then they are going to wait out the gas prices and hold what they have to.
Just my 2 cents.
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Permalink Reply by insomniacnla on
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Hey Randy,
Nice to see you post again. Were you referring to any of the Encana wells I mentioned? The reason I am interested is that Sec. 11 is next door to me. Any information you can post about it is appreciated.
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