Economical

Natural gas production in the Marcellus Shale leaped to nearly 4 Bcf/d in just three years, and even though it remains the most economical gas play in Lower 48 states, producers already are moving rigs to more liquids-prone targets, according to Barclays Capital energy analysts.

Marcellus Shale natural gas production leaped to nearly 4 Bcf/d in just three years, and even though it remains the most economical gas play in Lower 48 states, producers already are moving rigs to more liquids-prone targets, according to Barclays Capital energy analysts.

GMX Resources Inc. (GMXR) said it has branched out from its Haynesville/Bossier natural gas-directed properties, collecting about 67,724 net acres within the core horizontal oil development areas of the Bakken/Sanish-Three Forks Formation in the Williston Basin and the Niobrara Formation in the Denver-Julesburg (DJ) Basin.

With front-month natural gas futures prices ranging between $5.50 to $7.50/Mcf and front-month crude prices ranging between $56.00 and $63.00/bbl during the month of October, U.S. producers are finding that it is still economical to explore for and drill new wells, according to a new rig count study from Baker Hughes. The number of rotary rigs scouring the United States for oil and natural gas during the month of October decreased marginally from September, but recorded a significant increase over October 2005, according to the drilling services provider.