"Barnett Combo"

EOG Resources on tuotannoltaan tällä hetkellä 70 prosenttisesti kaasupainoinen yhtiö, mutta yhtiö yrittää agressiivisesti kasvattaa nesteiden osuutta tuotannostaan ja tavoitteena on 50/50 jakauma vuoteen 2013 mennessä. EOG on merkittävä toimija Barnett-maakaasuliuskeella Teksasissa ja se on löytänyt maakaasun lisäksi kohtuullisia määriä nesteitä(öljyä ja NGL) Johnson ja Montague-piirikuntien alueelta.

Q2 CC:

"I'll start with the Barnett Combo Liquids Play. This play continues to gain momentum and the pace of development and progress of our learning curve in Montague County is analogous to when our Johnson County Barnett project lifted off from the launch pad a few years ago.

We started the year with three rigs in the combo and expect to end the year with a seven rig program. Our press release highlighted initial rates on multiple wells we completed during the quarter. Recent well costs are running less than $3 million and typical per well initial rates are between 200 and 500 barrels of oil per day, with 1 to t2 million cubic feet a day of rich gas that contains a lot of natural gas liquids.

Our working interests range from 89% to 100%. Most importantly these wells generate a 30% to 60% direct after-tax rate of return using current oil, gas and NGL prices. As in Johnson County, we believe that per well reserves are improving as we gain experience fracture treating this rock, but it's too early to quantify this improvement. We expect to drill 100 to 120 combo wells this year.

In early July we closed on a tactical Montague/Cooke County acquisition from a private company for stock and cash whereby we acquired 2,000 barrels of equivalent oil per day of net production and 25,000 net unproved acres that were intertwined with our existing acreage.

We now have 194,000 acres in Montague and Cooke counties with an additional 144,000 acres farther west in Clay and Archer counties where the Barnett is thinner. For now we're concentrating only in Montague and Cooke counties where the Barnett is very thick and where we have an overwhelmingly dominant acreage position, i.e. this play is ours."

EOG:n Barnett Combo(kaasu+nesteet) on vielä kehityksen alla mutta luvut ovat melko mielenkiintoisia(alla olevat ovat EOG:n elokuun sijoittaja presentaatiosta):

Reservi potentiaali per kaivo:
Öljy 45 000 tynnyriä
NGL 75 000 tynnyriä
Maakaasu 540 MMcf
Yhteensä 210 000 boe

Koko maa-alueensa Barnett Combon reservipotentiaaliksi EOG arvioi yli 200 miljoonaa boe:ta.

Verrokkina Crescent Pointin lukuja Bakken kaivolle: kaivon hinta $1.3 miljoonaa, reservit per kaivo 145 000 boe. Em. luvuilla ja WTI:n ollessa $50 CPG arvioi IRR:n olevan 185%, WTI $60 nostaa IRR: jo 220%. Saskatchewanin Bakkenin keskimääräisen kaivon tuotanto lähtee 100-200 tynnyristä per päivä.

EOG arvioi kaivokohtaiseksi öljy potentiaaliksi vuoden 2008 maaliskuussa 75 000 tynnyriä ja nyt arvio 45 000, toisaalta kaasuarvio per kaivo on yli tuplaantunut aiemmasta ja CEO Papa sanoi että 210k boe per kaivo arvio on melko varmasti alakanttiin. EOG:n mukaan tuo 200k boe per kaivo vastaa vain 2% talteenottoa maa-aineksesta olevista hiilivedyistä.

EOG:n näkemys Barnettista on vahva: yhtiö on tänä vuonna ostanut alueelta lisää maata ja aikoo porata yli 100 yhdistelmä kaivoa alueelle(3 milj. per kaivo ja >80 WI:llä tuo tarkoittaa $300 miljoonaa), ja tuo näkemys poikkeaa mm. Denburyn, Quicksilver Resoucesin ja Cheasapeakin näkemyksistä sillä nuo ovat myyneet Barnett-oikeuksiaan.

The economics of NG

O&G Investor: GOM Shelf Gas Producers Uneconomic Today; Purest-Play Shale Producers Make Best Bet

"Gulf of Mexico shelf gas producers are at the greatest risk of not staying afloat of current natural gas prices. “If you aren’t getting $5 an Mcf, you should not be drilling any Gulf of Mexico (shelf) projects,” says Rehan Rashid, managing director and head of energy and natural resources research for FBR Capital Markets, a unit of Friedman, Billings, Ramsey & Co. Inc.

“Stick with the purest shale players and avoid producers in conventional plays, such as the Gulf shelf,” he says."

"Which shales plays have stronger odds if service costs decline? At the current cost of oilfield services and at $4.50 gas prices, the Haynesville, Marcellus, Fayetteville, Barnett and Woodford shale plays have single-well internal rates of return ranging from 25% to 75%, according to Rashid.

If service costs decline 40%, the single-well IRR at $4.50 gas improves to 400% in the Haynesville; more than 300% in the Marcellus; more than 250% in the Fayetteville; more than 150% in the Barnett; and 100% in the Woodford.

Canonica says the gold-rush mentality in the U.S. gas industry these past few years led to 8% growth in gas production in 2008. “This happened to coincide with the worst financial crisis in decades. The result: Futures have dropped to less than $4 per million Btu from nearly $14.”

The current breakeven price is $2.88 in the Haynesville; $3.16, Pinedale; $3.60, Fayetteville; $4.00, Marcellus; $4.02, Piceance; $4.04, Barnett; and $4.55, Woodford.

“Current spot prices are not supporting drilling in most unconventional plays. But forward prices have not dropped below breakeven costs in some of the star plays,” Canonica says."

At the moment it's pretty clear that the supply of natural gas in North America and elsewhere on the Globe will exceed demand into the foreseeable future. Not at all good for gas producers, but it is great for nitrogen fertilizer producers such as Yara, Terra and CF Industries, power generators and equipment suppliers e.g. Foster Wheeler, Wärtsilä and Exterran.