Haynesville Permits Drop -25% Y-o-Y
Activity in the Haynesville slowed as U.S. independent operators have moved to core plays with better returns at current prices. Operators like Comstock and EXCO have looked to the Haynesville to start refrac programs that show promise of higher returns. Read more about our Haynesvill Refrac In-Depth Series.
Permit activity shrinks -25% from one year ago
In the Haynesville, new drilling permit activity has decreased -25% from January of 2015 to January of 2016 and -61% from 2014. So far in 2016, there have been 46 permits issued. The top permitted counties in 2016 include Red River and De Soto, each having 10 permits. Horizontal wells continue to hold the majority of permits being issued this year with 32 out of the 46 with the remainder being vertical wells.
5 ½ Casing holds 58% of the market
Over the past year casing consumption has fallen but 5 ½ still remains the leader with ~58% of the market in the past three months. Over the past three months 8.8 million feet of 5 ½ casing has been used with 9 5/8 coming in second using just over 3 million feet of casing.
Where does the Haynesville stand in the DUC count?
Completion activity has fallen into 2016 compared to 6 months ago when there were 23 completions in the month of July. How will this impact the number of uncompleted wells in the Haynesville?