Checkbook

The senior executives of Halcon Resources Corp. have a fatter checkbook than when they started Eagle Ford Shale pioneer Petrohawk Energy Corp. not so very long ago. Having sold that successful natural gas-focused venture, with Halcon they are targeting unconventional oil plays with a similar strategy and expecting similar success.

The checkbook will always be a quick and handy tool for growing reserves, and big M&A deals will always garner headlines. But it’s organic growth through the drillbit that keeps the whole thing going. An example would be what Southwestern Energy has cooking in the Fayetteville Shale, an up and coming unconventional gas play the company pioneered.

When buying acreage in a hot unconventional gas play, like the Barnett Shale in North Texas, it’s important to not lose your nerve at checkbook time. U.S. shale plays are hot and getting hotter. If your company is late to the party, that’s OK. Just know that the admission price is higher now.