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: The Energy Law BlogHaynesville Shale Scores Big Despite Low Gas Prices
By Jacob Credeur
A recent article in the Shreveport Times indicates that payouts from the Haynesville Shale formation are leaving even the biggest players surprised. Even though Petrohawk Energy, Chesapeake, and other producers are scaling back production activity nationally because of reduced demand for natural gas, many producers are ramping up their activities in North Louisiana. The early reports from wells there indicate production levels up to ten times higher than wells in other productive gas fields. According to the Louisiana Department of Natural Resources, Petrohawk had the top producing well in the state for the month of December with roughly 713.4 million cubic feet of production. With numbers like those it is no surprise that some companies are placing in excess of 50% of their 2009 budget into the shale play.
While some of the numbers and production being reported out of the Haynesville Shale are staggering, many in the industry warn that development will remain slow without an upturn in the markets and increase demand for natural gas.
For more on the article, see http://www.shreveporttimes.com/article/20090317/NEWS01/903170315
Full post as published by The Energy Law Blog on March 31, 2009 (boomark / email).
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