Realized

A shift by global natural gas and oil companies to unconventionals, liquefied natural gas (LNG) and the deepwater has lifted prospective value growth across the upstream sector by 23% from a year ago, according to new research by industry consultant Wood Mackenzie.

Australia’s BHP Billiton Ltd. has offered to buy shale patch pioneer Petrohawk Energy Corp. for $12.1 billion in a deal that would more than double unit BHP Billiton Petroleum’s resource base and grow proved reserves by about 30%, it said. Petrohawk shares took flight on the news as investors also delivered uplift to a flock of the company’s peers.

The Fayetteville Shale in northern Arkansas not only appears destined for sustained significant growth well into the future but commands some of the highest shale pricing around. One of the chief signals of these optimistic expectations was the Dec. 1 start-up of service on Fayetteville Express Pipeline (FEP), providing a major addition to takeaway capacity for the shale’s producers.

A study commissioned by the state of Alaska paints a picture of rising costs in North American shale gas plays and higher gas prices in the years ahead that lend support to the case for a gas pipeline from the state’s North Slope to serve Lower 48 markets.

Lower natural gas prices will have an effect on National Fuel Gas’ (NFG) bottom line in 2011, but the company will continue to ramp up its drilling operations in the Marcellus Shale during the year, CEO David F. Smith said during a conference call with financial analysts Friday.

Although not as strong as on the day before when gains across the board were nearly all in double digits, the cash market realized minor advances at a large majority of points Thursday. A small prior-day uptick of 2.8 cents by October futures provided a small amount of support, and there is evidence that recently heavy storage buying may be helping to keep cash quotes afloat.

A successful drilling program in the Haynesville Shale helped Comstock Resources Inc. achieve an average daily production rate of 207.5 MMcfe in 4Q2009, a 13% increase from 3Q2009 and sharply higher than the 1.5 MMcfe/d of production reported in 4Q2008, the Frisco, TX-based company said.

A successful drilling program in the Haynesville Shale helped Comstock Resources Inc. achieve an average daily production rate of 207.5 MMcfe in 4Q2009, a 13% increase from 3Q2009 and sharply higher than the 1.5 MMcfe/d of production reported in 4Q2008, the Frisco, TX-based company said.

A successful drilling program in the Haynesville Shale helped Comstock Resources Inc. achieve an average daily production rate of 207.5 MMcfe in 4Q2009, a 13% increase from 3Q2009 and sharply higher than the 1.5 MMcfe/d of production reported in 4Q2008, the Frisco, TX-based company said.