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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 2:39

I agree with Jay.  Somewhere between $4 and $4.50 all the major operators will incease drilling.

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Permalink Reply by tc on March 27, 2013 at 3:45

IMHO it won't happen this year as drilling budgets are already set, also E&P companies will want to see how NG prices react to the injection season.  For next year I could see the Marcellus shale getting more of the dry gas drilling budgets as more acreage there is not HBP.  One big wild card is Chesapeake, will they still be an independent company next year and exactly what assets will they still own.

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 4:58

Some major Haynesville operators will not wait for $4-$4.50 gas.  These permits posted today for EnCana.

RED RIVER	01	246171	HA RD SUJ;EDGAR CASON 35-26 HC	001-ALT	27-MAR-13	E165	035-14N-11W	7651	RED RIVER-BULL BAYOU	21500
RED RIVER	01	246172	HA RD SUJ;EDGAR CASON 35-26 HC	002-ALT	27-MAR-13	E165	035-14N-11W	7651	RED RIVER-BULL BAYOU	21500
RED RIVER	01	246173	HA RD SUJ;EDGAR CASON 35-2 HC	001-ALT	27-MAR-13	E165	035-14N-11W	7651	RED RIVER-BULL BAYOU	21500

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 5:49

There were 57 undrilled Haynesville permits starting March.  In the last two weeks there have been 15 additional new wells permitted.

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Permalink Reply by Bobi Carr ("parker") on March 27, 2013 at 5:56

I bet all of them contain ALT in their name.

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 6:24

Nope.  Only 4 of the 15.

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Permalink Reply by david crocket on March 28, 2013 at 13:46

I don't know much about the gas wells, but could you please tell me what the alt means and signifies?  thanks

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Permalink Reply by Skip Peel - Mineral Consultant on March 28, 2013 at 13:55

The first well drilled in a unit is the unit well.  Every well thereafter is an alternate unit well.  Alt-1, Alt-2, Alt-3, etc.  As long as the unit well is producing in paying quantities it holds the lease(s) in force.  Drilling alternate unit wells just increases supply and holds down the price of natural gas. 

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Permalink Reply by Bobi Carr ("parker") on March 28, 2013 at 16:02

...but they are cheaper for the company, because the infrastructure is already there.

Permalink Reply by reallyoldguy on March 27, 2013 at 12:51

Skip, I assume these are just LA well permits.  Or, are they LA and TX well permits total?

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 12:52

Just Louisiana.

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Permalink Reply by Skip Peel - Mineral Consultant on March 27, 2013 at 12:01

Cross unit laterals are becoming more common. And not just for HA drilling units.

http://ucmwww.dnr.state.la.us/ucmsearch_070611/UCMRedir.aspx?url=ht...

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