Immediately southeast of the Haynesville, the eastern Louisiana Austin Chalk is making headlines from the great interest gained by EOG Resources Inc., ConocoPhillips, Marathon Oil Corp. and others, including one of the first to lease, PetroQuest.
In just a few years, this producer and shipper has made a market of getting stranded-gas resources to eager buyers. And the eager buyers of its oncoming LNG exports? They are aplenty.
In 2018, the traditional method of predicting gas demand—HDDs, CDDs and prior-year injections and draws—often didn’t work as expected. In play was more than 8 Bcf/d of increased gas output, but a nearly similar increase in demand.
Behind operators’ tremendous returns are tremendous advancement in lateral length, proppant volumes, stage spacing, pumping—and data.
Bernadette Johnson, vice president, market intelligence, Drillinginfo Inc., shares unique intel into overall D&C and leasing activity in the Haynesville, East Texas gas, Central Louisiana Chalk and North Louisiana Cotton Valley—and real-time data on transaction values
Consolidation continues in the heated Haynesville and Bossier. Early buyers already have great results to report. Here’s how one operator has built its portfolio and hear transactioneers’ outlook for more needle-moving deals.
There is a significant amount of gas on the Texas side and it’s thicker than the Louisiana core, according to Rockcliff Energy’s CEO Alan Smith at DUG Haynesville.
Taking in an expansive East Texas portfolio in 2016, Castleton Resources subsequently brought in Tokyo Gas America Ltd. as its partner in proving more Bcfs in the massive Cotton Valley and Bossier/Haynesville.
Shippers have driven transportation costs down, making producers’ Haynesville wells work at a sub-$2.50 strip.
Improvements in completion methodology are providing superior returns for this operator, among those that have figured out how to make the Haynesville work at sub-$2.50 futures.