+2.9% Increase in Gas Plays Rig Count
The BHI land rig count has slowed in the decline to only releasing -21 rigs or 2.3% compared to last week. Of the -21 rigs dropped, 20 are oil horizontal rigs. Gas plays have improved, increasing by 6 rigs compared to last week, with the addition of 2 rigs in the Haynesville play. Top losses originate from Texas, Oklahoma, and North Dakota, dropping 4.4% of their rigs compared to last week, all of which are oil rigs.
Summary of Plays
- Permian Basin -4.7% to 246 rigs compared to last week’s 258 rigs
- Eagle Ford -6.5% to 115 rigs from last week at 123 rigs
- Williston Basin -6% to 79 from last week’s 84 rigs
- Marcellus stayed flat at 69 rigs
- Mississippian -6.5% to 29 from last week’s 31 rigs
- DJ-Niobrara +3.6% to 29 from last week’s 28 rigs
- Utica stayed flat at 26 rigs
- Cana Woodford +2.5% to 41 rigs from 40 rigs the previous week
- Haynesville +7.4% to 29 rigs from last week’s 27 rigs
E&Ps and Oilfield Service Companies Revise Plans
Several companies further revised plans downward recently, despite the recent uptick in WTI to above $55 per barrel. Among these were Comstock Resources, Schlumberger, and Chesapeake Energy.
- Comstock Resources (NYSE: CRK) has announced a revised drilling plan in the Hayesville, with a previously reported 14 new wells and 10 refracs to 9 new wells and 14 refracs. They have also revised their budget to $248 million for 2015 from the $317 million previously announced.
- Schlumberger (NYSE: SLB) commented on the use of refracs in the current market, mentioning that the technology is only held by a few number of pressure pumpers and result impact is yet to be seen.
- Chesapeake Energy (NYSE: CHK) has further reduced their budget to $3.5 – $4 billion from the previously announced $4 – $4.5 billion, and will run 25-35 rigs for the year.
- Cabot Oil & Gas is currently running 2 rigs in the Eagle Ford and planning on releasing one by the end of May and remain at that level for the rest of 2015.