Replies to This Discussion

Permalink Reply by Checkmateking on August 20, 2009 at 7:43

Gas will go up, but it is going to be a while.

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Permalink Reply by Les Bamburg on August 20, 2009 at 8:53

YLO, we will just have to be patient. By mid 2010 we should see some improvement but long term prices in 2011 and beyond are projected at ~ $6.50/MMBtu. Our rig count in NW Louisiana is probably close to the level it will be longer term. Companies are still planning to add a few more rigs later this year and in 2010 but look for the count to stabilize in the 90-100 range for the Haynesville Shale in Louisiana.

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Permalink Reply by young land owner on August 20, 2009 at 9:11

Okay I got u. You said that the rig count will slow down or stabilize, what about all the land that is under lease, they spent so much money in some areas leasing wont they put I well in every section to hold the lease, then when gas goes up add more.
Young land Owner

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Permalink Reply by The_Baron on August 21, 2009 at 7:51

The question is what will happen to the fringes or less productive areas.

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Permalink Reply by Les Bamburg on August 21, 2009 at 8:04

YLO, a large percentage of the acreage was already held by shallower production, especially in East Texas. There have been almost 500 Haynesville Shale wells drilled already in Louisiana alone with an additional 1400+ likely to be drilled over the next two years. This may be sufficient to hold most of the remaining acreage in the play.

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