Wells

Even with an anticipated 70% cut to the U.S. natural gas rig count and an increasing number of uncompleted wells and summer shut-ins, domestic supply won’t fall fast enough to solve the overcapacity problem this year, analysts with Raymond James & Associates Inc. said last week.

Even with an anticipated 70% cut to the U.S. natural gas rig count and an increasing number of uncompleted wells and summer shut-ins, domestic supply won’t fall fast enough to solve the overcapacity problem this year, analysts with Raymond James & Associates Inc. said Monday.

Three independents this week separately announced strong initial production (IP) rates from natural gas wells that were drilled horizontally on the Texas side of the Haynesville Shale.

The Alabama Oil and Gas Board has granted the petition of MoBay Storage Hub LLC to establish the North Dauphin Island Gas Storage Facility, a 50 Bcf high-deliverability, multi-cycle (HDMC) underground storage operation designed to serve as a hub with multiple pipeline connections at the eastern end of the Gulf Coast, MoBay said last Thursday.

The Alabama Oil and Gas Board has granted the petition of MoBay Storage Hub LLC to establish the North Dauphin Island Gas Storage Facility, a 50 Bcf high-deliverability, multi-cycle (HDMC) underground storage operation designed to serve as a hub with multiple pipeline connections at the eastern end of the Gulf Coast, MoBay said Thursday.

With more than 1,000 natural gas wells in the city now and the potential for several thousand more, it’s to be expected that some Fort Worth, TX, residents would grow weary of the associated noise, truck traffic and pipeline development in their midst. That doesn’t mean they want it to stop.

With more than 1,000 natural gas wells in the city now and the potential for several thousand more, it’s to be expected that some Fort Worth, TX, residents would grow weary of the associated noise, truck traffic and pipeline development in their midst. That doesn’t mean they want it to stop.

Ultra Petroleum Corp. managed to increase its natural gas-directed organic production by 22% in 3Q2007, despite voluntarily shutting in about 12% of its production from wells in the Green River Basin of southwestern Wyoming. Now with the “probable likelihood” of an early start-up for the Rockies Express Pipeline Ltd. (REX), the company is readying to build on its growing reserves.

GMX Resources Inc. (GMX) has agreed with PVR East Texas Gas Processing LLC, a subsidiary of Penn Virginia Resource Partners, to process all of its natural gas produced from wells jointly developed with Penn Virginia Oil & Gas LP located in Harrison and Panola counties in East Texas. GMX estimated that processing revenues on the associated natural gas production will increase the current average sales price by approximately $1.20/MMBtu and said it expects a potential $4.5 million revenue increase for FY2008 at current commodity prices. Processing is expected to begin no later than March 1. GMX will gain access for its residue gas to additional pipelines serving the Perryville Hub. GMX said it is negotiating a similar processing agreement to cover the balance of its production in its core area. GMX also said it has finalized a definitive agreement for a proposed acquisition of approximately 3,200 gross (3,000 net) acres of undeveloped leases in Harrison County, TX, increasing its overall net acreage by 18% and operated acreage to 65%.