Gas liquids-rich, producers broke-ass poor

CHK:

Average prices realized during the 2012 second quarter (including realized gains or losses from oil, NGL and natural gas derivatives and excluding unrealized gains or losses on such derivatives) were $1.88 per thousand cubic feet (mcf) of natural gas, $91.58 per barrel (bbl) of oil and $25.94 per bbl of NGL, for a realized natural gas equivalent price of $3.77 per thousand cubic feet of natural gas equivalent (mcfe).

By comparison, average prices realized during the 2011 second quarter (including realized gains or losses from oil, NGL and natural gas derivatives and excluding unrealized gains or losses on such derivatives) were $5.19 per mcf of natural gas, $87.99 per bbl of oil and $38.37 per bbl of NGL, for a realized natural gas equivalent price of $6.07 per mcfe

Kondensaatin hinta ei ole laskenut samassa suhteessa muiden nesteiden kanssa, joten ne tuottajat, joiden NGL:t koostuvat pääasiassa kondensaatista eivät ole kärsineet näin pahasti. Metaanin(kuiva kaasu) hinta saattaa nousta hieman tulevina kuukausina, muttaa propaanin ja eteenin hinnat näyttävät olevan laskupaineessa, kun tarjonnan kasvu ylittää kysynnän kasvun reilulla marginaalilla lähitulevaisuudessa.

Viime viikolta:

Gas Liquids ‘Bloodbath’ Brings Shale Pain to Oil Market

Märkyys on suhteellista

OGJ:

Chesapeake Energy's first horizontal Utica Shale well, the Buell #8H, tested 6.5 MMcfepd (6.2 MMcfpd of natural gas and 59 bopd of condensate), noted a September 8 report by Jefferies & Co. Inc. citing the Ohio Dept of Natural Resources. The hype surrounding the oil and natural gas producer's Utica Shale acreage jumped in July when, as part of its 2Q11 financials report, the company put a $15 to $20 billion valuation on its 1.25 million acres in Ohio. The Buell well, in central Harrison County, Ohio, sits in the wet gas window of the emerging Utica Shale. Drilled at a vertical depth of nearly 8,400 feet with another 6,800 feet of horizontal lateral, the condensate yield was similar to the wet area of the Marcellus in southwest Pennsylvania. Without choke size or flowing tubing/casing pressures in the completion report, “it is impossible to determine if the well was capable of flowing at a higher rate,” noted Jefferies analysts. “Field sources had indicated the well may have flowed as high as 18 MMcfe/d, but we have no way of confirming that from the data in the completion report. Nonetheless, 6.5 MMcfe/d from the first well in a new play is very encouraging. Highly unlikely Chesapeake has found the optimal landing target or frac recipe in the first attempt.”

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Harrison County on 2/3 märän kaasunakkunassa CHK:n kartassa . Luvut eivät OGJ:n tekstissä ole suoraan viranomaisilta, joten on mahdollista jotain on muuttunut matkalla. 9,5 tynnyriä kondensaattia per MMcf ei ole kyllä kovin märkää tai rikasta.

CHK@ Williston Basin

Scott Hanold - RBC Capital Markets Corporation

I guess I'll press to Williston a little bit here. So you all didn't say what you paid for the 100,000 acres. I know you disclosed the price in the Anschutz stuff. Can you kind of give us color on that? And maybe some indication, are you looking at Montana, North Dakota or both?

Aubrey McClendon

Scott, it's still pretty early. And that's a basin that, historically, we've not done well in. We've made a run on it Lyco in 2005 and Headington in 2008. We wanted -- both of those deals would've given us a really strong position in the Williston today, and we failed in both those opportunities. So we've been poking around. And we saw something that we liked, and we acquired it. It does not have any production on it. It's just acreage, and it's an idea that we have that it's a little early to talk about in any more detail. We suspect that it probably doesn't get to a size of needing a joint venture partner, but we'll see. But I can confirm it's in the Williston Basin, and it will be an oil play for us.

Scott Hanold - RBC Capital Markets Corporation

Is there a lot of industry activity around you? And obviously, it was almost 160 rigs in the basin. It's hard to believe there's a lot of acreage of oil production on that.

Aubrey McClendon

Yes, I mean, we didn't buy -- we don't buy fringe stuff. It's not really our style. We try to buy core acreage. But occasionally, we have a different idea than some folks about how the world works. And so we'll see how this plays out.

Chesapeak on ollut eturintamassa melkein kaikissa USA:n epätavanomaisissa resursseissa, paitsi Bakkenista, joka on mennyt heiltä käytännössä kokonaan ohi. Nyt CHK on kuitenkin "hankkinut" 100k eekkerin edestä oikeuksia Williston Basinissä. McClendon ei mainitse oikeuksille hintaa eikä käytä sanaa osta, mikä viittaisi siihen että hankinta on tehty muuten kuin rahalla kuten farm-in tai vaihto. Oikeuksien sijainti on varsin epämääräinen, koska WB ulottuu Montanaan, Etelä ja Pohjois-Dakotaan, Saskatchewaniin ja Manitobaan. CHK:n tapauksessa Kanadan voi melkeinpä sulkea pois, koska yhtiöllä ei ole toimintaa USA:n ulopuolella eikä yhtiö aio ilmeisesti laajentuakkaan ulkomaille tulevaisuudessa.

Tuon 100k pläntin lisäksi Chesapeakin pitäisi tuoda piakoin julki uusi resurssi, jonka alueella yhtiöllä on miljoonan eekkerin edestä oikeuksia.