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Permalink Reply by Les Bamburg on April 13, 2010 at 16:13

Skip, obviously the person that wrote the article didn't take the time to listen to Floyd's presentation because the headline is absurd. Floyd started his talk by saying obviously Petrohawk will not be an "oil company" unless they are bought by ExxonMobil which was met by applause. Petrohawk is 98% natural gas and he went on to say how he is not listening to his advisors about being more oily because the shale gas plays are great. He also stated this Wall Street push for liquids is BS. Floyd simply sees the oil & condensate in the Eagle Ford as an enhancement which is inconsistent with the implication of the headline.

Also, the author needs to take a little math course as the reduction in Haynesville Shale capital was $50MM or < 6% rather than the 20% quoted in the article.

Floyd said Petrohawk would have all their Haynesville Shale acreage HBP'd by mid-2011 but seem to indicate there are no plans to reduce rig count at that time. He said it would take decades to fully develope all their US acreage holdings and they would have a 100 years of natural gas production.

It is a shame these poorly written news articles seem to always get the most attention. In most cases people are better off to read the company press releases and presentations as the media just seems to foul it up.

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Permalink Reply by Skip Peel - Mineral Consultant on April 14, 2010 at 2:22

Les~

Your objections to the article headline and accuracy sre noted. I find little about Petrohawk "becoming an oil company" and much about a new emphasis on "liquids". As this is an industry-wide trend, I find nothing strange about it. I did find it of interest that " "The stabilising (sic) effect of the restricted rate production programme (sic) in the Haynesville Shale also allows this transition of capital without significantly affecting our growth rate,” Wilson said in a release. “Our drilling pace in the Haynesville Shale is on track to achieve acreage and production goals thanks to drilling efficiencies gained during the past year." I take this to mean what it appears to state, Petrohawk can meet its production and HBP goals with fewer rigs owing to increased efficiencies. I'll take your word on the math.

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