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Permalink Reply by Jack Blake on June 27, 2010 at 5:03

Jack Blake can see the rates coming up to projection.
Louisiana production 3.8 billion cubic feet/day pre HS and 5.2 bcf/d one year after initial boost.
Jack Blake said Holy sheep shit batman!!!!!!!!!!!!

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Permalink Reply by Bacon on June 27, 2010 at 5:14

Takeaway capacity could become an issue soon huh?

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Permalink Reply by Jack Blake on June 27, 2010 at 5:19

Jack Blake says he don't know what "takeaway capacity" means. Jack thinks power plants should switch to gas. It is so much cleaner than coal.
The HS can provide the gas. Instead of railroading coal across the nation lets pipeline gas across the nation......
Everyone be green natural gas burns clean howled Jack Blake
JackBlakewasapoetanddidntknowit

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Permalink Reply by Les Bamburg on June 27, 2010 at 6:47

Bacon, I still owe you an update on takeaway/pipeline capacity. Eventually the new Tiger Pipeline and the Enterprise Cypress Pipeline extension will be in service plus there are one or two expansions in the works. The biggest concern is the gas interstate pipeline capacity downstream of Perryville as this is where a lot of Barnett Shale, Woodford Shale, Haynesville Shale & Fayetteville Shale production is converging. I tried to convince a certain company to build a new 42" "bullet" line from Perryville to the Northeast market similar to REX but couldn't get a bite.

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Permalink Reply by w.r. frank on June 27, 2010 at 5:19

Les,

Please forward to Mr. Powers of Powers Energy Investment. The plateau in the last quarter of 09 was, I believe, related to a pipeline/processing explosion that caused many operators to curtail production. In any event, it looks like total (est.) LA. and TX. production went from just under 2 bcf/d at yearend 09 to over 2.5 bcf/d at the end of Q1(a 25% quarterly increase). Tells a different story from Berman/Dell/Powers. Also, many operators are not completing HA. wells due to frac capacity issues and pricing ("supplemental storage").

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Permalink Reply by Les Bamburg on June 27, 2010 at 16:33

WR, too bad Mr Powers does not take the time to read GHS before making his ridiculous statements. Here are just a couple of pearls from his recent article:

"While the Haynesville may continue to grow from its current level of production of approximately 1.80 billion cubic feet per day (bcf/d) (this figure is the estimated combined production from the Haynesville in both Louisiana and Texas), it now appears that production growth from the play has stalled."

"After a massive ramp up in production in 2008 and the first nine months 2009, production in the three largest producing parishes stalled in the final quarter of last year. The 200 wells that went into production from the end of 2009 thru May 2010 are unlikely to have increased production significantly due to the huge declines of older wells."

And this person has the nerve to make fun of the stock analysts.

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Permalink Reply by Parkdota on June 27, 2010 at 8:32

This can't be true....according to Berman and others the HA has already peaked. lol

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Permalink Reply by Mattie on June 27, 2010 at 17:10

There will need to be new pipeline capacity going somewhere to take the gas to market - Marcellus Shale players are already backhauling much of their production to get to market due to constraints in the market zone. Les is right about the constraints at Perryville. The Florida markets would appear to be the best option for LA production going forward - there is continuing demand growth, and not likely competing with Marcellus gas as it develops over the years - that or perhaps a future LNG export market, which I would prefer not to see unless gas prices are so depressed that it warrants exporting to keep producers in business.

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