For those that want to be a player in a hot shale, Petrohawk executive vice president Steve Herod points out that being second on every lease is as good as being last. “You have to be willing to pay the rate to play the game if you’re going to be successful,” he said at A&D Watch’s recent “A&D–The Workshop: Unconventional Gas.” He should know: Petrohawk currently holds some 90,000 undeveloped acres in the Cotton Valley/Haynesville shale play and 155,000 in the Fayetteville shale. Speed, too, is critical in acquiring a quality position. “You can’t wait if you want to be in one of these plays. Once you make the commitment you’ve got to be willing to move quickly.” Being first in the play, however, isn’t necessary to establish a good position, he says, but it pays to have experience in knowing the good spots from the dead zones. “Not all acreage is the same.” A 500-acre block in a prime area is worth “way more than a scattered 500 acres” over 20 sections, he said. Is the land close to the pipeline? “It doesn’t do any good to have all that acreage if you can’t get the gas out.” The market can change quickly. What may be the going rate one week may not be in the market the next and real-time communication on valuation is important. You want to be first? Keep a Blackberry in your pocket and check it before knocking on that landowner's front door. Chances are he knows the up-to-the-second price per acre. Be a part of our next “A&D–The Workshop” and “A&D Strategies and Opportunities” in September. Steve Toon, Editor, A&D Watch; Contributing Editor, Oil and Gas Investor; www.OilandGasInvestor.com; firstname.lastname@example.org
2024-02-29 - Madrid-based Repsol SA will invest €$2.2 billion (US$2.38 billion) between 2024-2027 on its unconventional assets in the Marcellus and Eagle Ford as it focuses on increasing its core U.S. upstream business platform.
2024-02-28 - U.S.-based Cheniere Energy expects the U.S. market, which exported 86 million tonnes per annum (mtpa) of LNG in 2023, will be the first to surpass the 200 mtpa mark—even taking into account a recent pause on approvals related to new U.S. LNG projects.
2024-02-26 - With various overseas headaches, Houston-based APA Corp. aims to boost its Permian Basin volumes and integrate its Callon Petroleum acquisition when it closes in the second quarter.
2024-02-26 - Israel said on Feb. 26 that gas supplies to Egypt and Jordan rose by about 25% in 2023.
2024-02-21 - Venture Global files requests with the Federal Energy Regulatory Commission for Calcasieu Pass 1 and 2 before a potential vacancy on the commission brings approvals to a standstill.