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He said some interesting things about the Eagleford and Haynesvile shale plays and pipeline development.
- Believe that the Eagle Ford will be at the lower end of the cost curve that they look for.
- The first well came on at about 8 million/day in the Eagle Ford
- Eagle Ford, too early to tell if if it will have a large impact on natural gas supplies, but there is no reason to believe that it won't have an impact on lower 48 gas supplies.
- Do not have a footprint outside of transmission in the Marcellus. Currently looking at getting a position in the Marcellus.
- Specific metrics, EURs 40,000 acres in the Haynesville, 30,000 acres in the heart of the play. Estimated rocovery at 61/2-71/2 bcf per well in prime play territory. 5-6 bcf per well in non-prime play territory.$7-8 million to drill and complete a well.
- Price of natural gas in the Haynesville, not drilling to hold acreage. Drilling based on economics. Haynesville wells are economic at the lower end of natural gas pricing, plus they are hedged.
- Fracking regulation is better left to the states.