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 Snake Stewart on
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Hey Randy,
Glad to see the slow down hasnt affected you. I have heard several that have lost jobs or are working in other fields all together.
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Permalink Reply by Susie Brown on
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Randy, I know that Encana is now drilling on Burford land in Sec. 8 of 14/14. They have pooled 8 sections in 14-14. Are they going to move another well in to help drill those areas or wait to see what the Sec. 8 well does???
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Permalink Reply by Randy on -
Susie we only have so many rigs in the area right now, I don't know for sure if we are going to get any more soon or not. I hear differing opinions every few days from the decision makers. If you could tell me what section you are interested in I might could tell you what I think.
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Permalink Reply by Grice on -
Randy, do you know if the four Rowan rigs under evaluation, were scheduled for the Haynesville Shale area?
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Sec. 7 T14N R 14w
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Permalink Reply by Randy on
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Susie haven't heard anything for 7 but that could change in the next few weeks.
Pad is going in on 4..
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There are flags out all over 7,18 on Hwy 171. Figured that had to mean something.
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Permalink Reply by b on
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What about Encana in South Caddo areas? in and around 006-15N-12W. Seems like a lot of other activity in the area. i know they have an interest.
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Randy, I might add that all of us in Encana's drilling area are glad that Encana is drilling us. Everything we hear about them says "class act."
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Randy:
Do you work for Art LeBlanc?
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