Tuesday, August 26, 2008

#17- Haynesville Shale Updates - Post Date, Tuesday, August 26, 2008

This Post Last Updated: Wednesday, August 27, 2008
12:35pm CDT

Haynesville Shale
Large Natural Gas Deposit, Northwest Louisiana
UPDATES:

August, 2008

Note: This post will be updated over next few days so check back
(Scroll below for latest updates within this post)

Image courtesy of Chesapeake Energy

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Tuesday, August 26, 2008

* Let’s get caught up with the Haynesville Shale News by starting off with this news article I found early Monday morning at the 2TheAdvocate.com website. It starts off like this... The discovery of the Haynesville Shale - a huge natural gas cache in north Louisiana - pumped nearly $100 million into state coffers this month... More money is expected in September when state government takes bids on the lease of 11,000 acres of land within the shale’s 16-parish zone...The state is raking in millions. More revenue is expected from tax collections and royalties. And northern Louisiana lawmakers are brainstorming about how to keep at least some of the dollars in what is one of the poorest areas of the state...
Read the full report at link below...
State’s share of shale soaring - Gas discovery means millions
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* DailyWorld.com had the following report up on their website Sunday and it starts off like this...
Producing natural gas from the Haynesville Shale is not as simple as drilling a hole in the ground, says Don Briggs, head of the Louisiana Oil and Gas Association... Unlike most places, the gas is not trapped in reservoirs. It's in small vertical fissures in the horizontal bands of shale that have to be fractured by intense water pressure pumped 12,000 feet underground...
Read the rest at link below...
Retrieving Haynesville Shale gas presents challenges
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* Just in case you missed the first reports out a few weeks back... the following link at the 123Jump.com website has a summary of the second quarter fiscal 2008 earnings call conducted by Chesapeake Energy Corp. on August 1, 2008. It’s a very lengthy... informative read and it goes in part like this...

On average every square mile of Core and Tier 1 Haynesville Shale contains an average of 180 BCF gas in place.

This is based on an average formation thickness of 220 feet across this 3 million acres, original formation pressure of almost 10,000 pounds per square inch, and porosity, permeability, and water saturation measurements. From that gas in place Chesapeake will recover about a 52 BCF per square mile through the drilling of eight wells per square mile. This would result in per well average recoveries of about 29% of the gas in place, which is consistent with expected Barnett recoveries although Barnett drilling is 50% more dense than planned Haynesville drilling. This is a smaller recovery factor than expected from the Woodford and Fayetteville.

With about 3 million acres in the Blob, there’s roughly 4,700 square miles in the Haynesville.

At 52 BCF of recoverable gas per square mile, that equals about 2.45 BCF of recoverable gas in the Haynesville, exactly consistent with what Chesapeake had predicted from the beginning. So rather than this number being hype, it is instead an entirely reasonable number based on thorough scientific examination reinforced by actual drilling results to date. These are reasonable early estimates of the total resource that Chesapeake and others plan to produce over time...
Read the full report at link below...
Chesapeake Energy Earnings Call, Second Quarter 2008

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Post Update:
Wednesday, August 27, 2008

* The Independent Weekly has this news article posted on their website this morning and it starts off like this... Due to the explosion of activity in the Haynesville Shale, the Louisiana Oil and Gas Association has hired one of Gov. Bobby Jindal's former policy advisers, Jodee Niswanger, to serve as its north Louisiana director. She's heading the trade organization's new office in Shreveport , which opens Sept. 1 to address issues related to what many believe may be the largest natural gas shale play in the country... LOGA President Don Briggs says the talk of the town throughout the northwest Louisiana region is money, with rumors of $25,000 lease bonuses and quarter royalties. His office receives calls every day from residents in the shale region wanting to know when drilling will begin in their areas, and some residents have been forming coalitions that are considering filing suit against natural gas and exploration companies that paid lower bonuses in the early stages of the project. Briggs hopes the local office can educate people about the process, including the fact that lease values are mainly based on speculation -- and that someone who only got $150 an acre may end up in a sweet spot and receive millions in well revenue... "Although lease values seem to be escalating with no end in sight," says Briggs, "it would take just one dry hole to condemn a large area, and lease values in that vicinity could drop like a stone."...
Read this article in full at link below...
LOGA Opens Haynesville Shale Office

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Post Update:
Thursday
, August 28, 2008

* KTAL had the following news/video report posted on their website yesterday evening...
Vitter Meets With Residents To Discuss Energy And Louisiana
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* NWLANews.com posted this short article on their website... The Northwest Louisiana Economic Development Foundation is scheduled to hold an informational meeting at 6:30 p.m. September 4th at the Minden Civic Center to discuss the Haynesville Shale Project...
Local meeting to address Haynesville Shale
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* ActiveRain.com
website had this short write-up...

It's a Modern Day Gold Rush...the Haynesville Shale
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* MoneyMorning.com has this good read up on their website today and it starts off like this... After declining for 15 years, U.S. natural gas production is finally on the rise, thanks to new technological developments that make it possible to draw large amounts of gas from deposits previously thought to be unreachable. An increase in natural gas production of the magnitude many industry insiders predict could do wonders for business, the environment and even U.S. energy independence... U.S. gas production is up 9% this year - a rate of increase not seen since 1984 - with most of that gain coming from natural-gas shale, particularly the Barnett Shale, a deposit that now produces 7% of the country’s gas supply. Indeed, there could be as much as 842 trillion cubic feet of retrievable gas in shale deposits throughout the United States alone, according to Navigant Consulting. That would support the current level of U.S. consumption for about 40 years...
Read the rest at link below...
New Natural Gas Discoveries are a Boon for the U.S. Energy Sector
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* LandAndFarm.com...
80 Ac. Haynesville Shale

MORE TO COME SO CHECK BACK! *
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* Links of Interest *

* City of Shreveport website...
Shreveport Shale
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* KSLA.com...
Oil & gas companies drilling in the Haynesville Shale
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* KTBS.com...
(Has lots of informative links and News Videos)

Haynesville Shale
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* Cherokee Horn Production LP
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> At the following TwinCitiesDev.com link, you can click on various parts of the rig (indicated by numbers) and read or listen to part descriptions...
Parts of a Drilling Rig described
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> At the following TwinCitiesDev.com link, you can you can learn how the Fracing Process makes it possible to release gas from deep below the surface...
Fracing Process
Requires QuickTime Player
Click HERE for Free QuickTime Player Download
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> At the following TwinCitiesDev.com link, you can watch how horizontal drilling increases production rates while reducing the impact to the surface...
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* Gas Leases - You’re sitting on a Gas MineThis link is full of info you need to know before signing an Oil/Gas Lease Contract
Click it out at link below...
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Past Post:
> Sunday, May 4, 2008...
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> Sunday, May 11, 2008...
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> Thursday, May 15, 2008...
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> Wednesday, May 21, 2008...
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> Thursday, May 29, 2008...
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> Thursday, June 5, 2008...

#12 Haynesville Shale Updates - Tuesday, July 28, 2008
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> Tuesday, August 05, 2008...
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AubreyJ.........

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