Top Ten Louisiana Natural Gas Companies for 2019

Comstock* (Covey Park)          584,295,206 Mcf     981 Wells

Indigo*                                    462,835,936 Mcf   1181 Wells

Chesapeake                           420,069,859 Mcf     854 Wells

Vine O&G                              299,919,761 Mcf     431 Wells

Aethon (QEP)*                       244,096,399 Mcf     2181 Wells

BPX (BHP)                             208,341,058 Mcf`   1113 Wells

GEP Haynsville                       204,904,511 Mcf     427 Wells

EXCO                                    125,264,815 Mcf     538 Wells

Range Resources*                   85,404,729 Mcf       733 Wells

Goodrich                                 64,606,447 Mcf       54 Wells

Other companies of interest (the full state list is far too long to post here)

Hilcorp Energy +                     38,926,870 Mcf       510 Wells

Ensight IV Energy*                  34,651,271 Mcf       239 Wells

Tanos*                                    33,377,207 Mcf       688 Wells

Brix                                        32,991,211 Mcf       22 Wells

Nadel & Gussman*                  22,937,459 Mcf       167 Wells

Tellurian                                  12,929,543 Mcf       28 Wells

Compass Energy*                   12,388,123 Mcf       344 Wells

Blue Dome                              9,548,457 Mcf         14 Wells

* Denotes inclusion of production from intervals other than Haynesville/Bossier.  Range primarily LCV.  Aethon and Ensight are primarily Haynesvile/Bossier however both have a large number of legacy Cotton Valley and Hosston wells.  Tanos, Nadel & Gussman and Compass combination of Cotton Valley and Hosston.  Nadel & Gussman has transitioned to Haynesville horizontal wells in last two years.  Indigo still operates a number of Cotton Valley wells and occasionally drills some additional.

+ Hilcorp is the only company not producing from north Louisiana that has significant gas production.

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I've been curious to see who the top players are in today's arena. Thanks for posting. Go go Indigo!

You're welcome, John.  Just a little something to pass the time and entertain the members.  Some may be surprised that after two large asset sales and little recent drilling, Chesapeake is #3.  Imagine what Comstock's Haynesville footprint would look like if it ever completed the acquisition of Chesapeake's remaining Haynesville/Bossier assets. 

The fact that north Louisiana is the driver of state natural gas production is brought home by the fact that the top south Louisiana producer is 38,926,870 mcf.  It still amazes and disappoints me that we don't get recognized for our contribution to state production by mainstream media down south.  There are still quite a few of the general public outside of north LA that have never heard of the Haynesville Play.  The reason for this production imbalance is that south Louisiana has no unconventional reservoir plays and the majority of production is oil and condensate with only marginal volumes of associated gas from shallow and largely depleted vertical wells. 

Whenever you hear the usual grumblings about severance taxes from industry, it is helpful to keep this fact in mind.  Only a small portion of state oil volumes are taxed as "Full Rate".  The vast majority of production, north and south, falls into the latter two categories:  "Incapable" and "stripper".  Personally I would be supportive of a reduction of the Full Rate as it is high compared to other oil producing states.  That would however not be a great help, although the industry would welcome it, because of the "Deep Well" incentive that allows operators to pay nothing in tax for 24 months or until the well recovers its cost to drill and complete.

OIL SEVERANCE TAX RATES 

  1. Oil Full Rate STATUTORY CITATION: R.S. 47:633(7)(a)

12-1/2 % of its value at the time and place of severance.

It has not changed since 1974. For previous tax rate see Historical

Oil Severance Tax Rates page. 

  1. Incapable Oil Rate STATUTORY CITATION: R.S. 47:633(7)(b)

6-1/4 % of its value. Oil produced from a well that is incapable of producing

an average of more than twenty-five barrels of oil per day during

the entire taxable month, and which also produces at least fifty percent

salt water per day. On multiple well leases all wells must meet the criteria

to be able to qualify for the exemption. 

  1. Stripper Oil Rate STATUTORY CITATION: R.S. 47:633(7)(c)

3-1/8 % of its value. Oil produced from a well that is incapable of producing

an average of more than ten barrels of oil per day during the entire

taxable month.

on a related note, this week, I checked to see which, if any, companies are still permitting wells in DeSoto and Sabine.  CHK permitted 3 in DeSoto in the last few weeks.

Did you notice anything unusual about those wells, Steve?

CHK mineral fee and State Agency tracts.  CHK doing a reverse split to try and stave off BK.  The light at the end of the tunnel is a train.

Jay

There is something else different about these permits.

they weren't CULs.  didn't notice anything other than that.

That's what I noticed also.  You know how long it has been since CHK permitted an alternate unit well that wasn't a CUL?  Summer 2015.  That along with Jay pointing out that three of the four recent permits are in units where CHK owns the surface and the mineral rights makes sense for a company struggling to stay afloat.  That forth permit may have other some extenuating circumstance.  It's not related to production volume so maybe a drilling commitment?

All three are listed as ALTs, does this mean they are going back to an existing well and/or pad?

Nope.  The first well in a unit is the "unit well".  All other subsequent wells producing from that unit, whether a CUL or a "within unit lateral" well, would be designated as an alternate unit well.  I didn't check but they could very well be utilizing existing surface locations,  no need to go to the expense of building a new pad.

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