Topic: Haynesville Shale

West Texas inSANDity Continues in the Permian

Last week in Houston at the Frac Sand Supply & Logistics Conference, all signs pointed towards more sand per lateral foot, more mines in the Permian, and more trucks to deliver frac sand to the wellsite. Frac sand demand in the Delaware and Midland Basins is expected to increase. E&Ps have increased the proppant per lateral foot by 31% in the last year, with public E&Ps citing the transportation and logistics constraint as a concern, not frac sand supply. Regional replacement? Based on...

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DUCs Head North for Summer

Publicly traded E&Ps and service companies are entering a Q2 earnings season anticipating a slowdown across the unconventional plays. In Halliburton’s (NYSE: HAL) second quarter earnings call Dave Lesar said, ”rig count growth is showing signs of plateauing and customers are tapping the brakes.”  With oil prices under $50 per barrel and oil supply at record levels, expect a pullback in Permian, Eagle Ford, DJ-Niobrara, and Bakken drilling activity. The steady increase of horizontal drilling rigs and infrastructure needs in...

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Haynesville DUC Count Declines through 2015 and 2016

In the last piece on uncompleted wells explored North Dakota showing the impacts and trends that the uncompleted wells have on the market. Now how does one figure out the number of uncompleted wells without over or under counting? This article will show the approach of the DUC analysis by using the Haynesville play highlighting some of the difficulties and uses of this data. The chart below shows a glimpse of the outcome of this analysis and where the DUC...

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Exco Will Bring 18 Wells Online with $103M Budget in 2016

Exco Resources (NYSE: XCO) is an active operator in the Haynesville, Eagle Ford and Marcellus plays. XCO has cut the budget once again after finishing 2015 $23 million under the estimated budget of $300 million, budgeting $103 million for 2016. During the first half of 2016 they expect to spend $70 million on drilling and completion activities, a 59% decrease from 2015 first half spend.  Improved Well Design in the Haynesville and Longer Laterals in East Texas East Texas Asset Team...

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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,...

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EP Energy Defers Activity to Late 2016

EP Energy (NYSE: EPE) is an active operator in the Eagle Ford, Wolfcamp, Altamont and Haynesville plays. In 2016 daily production volumes are expected to fall between 91 to 97 MBoe/d from 109.7 MBoe/d in 2015 as the company continues to reduce activity. EPE is hoping to endure the downturn looking for improved pricing in the second half of the year where they are expected to pick up activity. Down to One Rig in the Eagle FordReduce rig count to one...

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Haynesville Permits Increase 81% in September Over August Activity

During the month of September there were 67 permits issued in the Haynesville. This was almost doubled compared to August which had 37 permits issued and closed the month out with 26 rigs running according the the BHI land rig count. At this time last year, there were 15 permits and 43 rigs in the Haynesville.The top permitting county this past week was Red River which issued 2 permits to Vine Oil & Gas. The most active week in September was...

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Horizontal Rigs Decline -2.9%

The total US Land Rig count was down -23, -2.9% last week with -18 horizontal rigs released. The horizontal rig count dropped to 598, -55% change compared October 2014.More discussions this week about the fall redetermination period. Each spring and fall, banks that lend to oil and gas companies do what's called a "redetermination." The banks calculate how much oil & gas companies can borrow based on reserves, commodity prices, and what the company has hedged.The redetermination conversations will be less about...

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