Very worrying article today in Investopedia........here is the link:
I've always worried that things would come to a grinding halt just when they reach the boundary of our pooled acreage! Hope this isn't the case!
what do BHP, HA and HP stand for? Just sitting here with a broken leg and nothing else to do but wonder....
BHP Billition: http://www.bhpbilliton.com/home/Pages/default.aspx
HA: Louisiana Department of Natural Resources/ Office of Conservation official abbreviation for the Haynesville formation. Generally speaking, the HA as defined in drilling & production units also includes the Bossier Shale.
Not sure where you got HP, VH. If you mean HK, it's the stock symbol and oft used abbreviation for Petrohawk.
BHP bought HK for far more than their HA acreage and activity. Personally, I beleieve that while the proven reserves in the HA looked attractive to BHP, it was HK position in the Eagleford, and Permian Basin that made the deal (liquid rich plays). HK has steadily moved rigs westward to these plays as they have HBP the HA.
Now I have heard rumours about more activity by HK in the HA, but only time will tell.
John, the article's statement regarding Petrohawk's rig count is fairly accurate as their rig count in the Haynesville Shale was dropped to 7 rigs in mid-July.
Much of Petrohawk's activity is in the Eagle Ford Shale where they are operating 14 rigs. The value is in current production and prospective acreage rather than in the number of drilling rigs.
Thanks for all of your input.........I feel a little better, and appreciate your thoughtful answers.
The GOOD news is that BHP has tons of cash from its gold operations. But, it seems like they wanted the expertise of Petrohawk. That is worth a lot. BHP has the cash to let Petrohawk sit on leases waiting for higher prices or they could develop the leases faster - but they don't have to since they have the money to float HK for years (think of how gold prices have risen)
They bought Petrohawk for their brains not just their leases. I expect HK to become very powerful with BHP - but that does not mean they will drill holes right away. They have the cash to sit and wait.