That would be a big move out of almost all their areas of expertise

would think they would be more interested in locking in a supply contract to an existing LNG facility than building their own.

Cyp0111 said:

---

That would be a big move out of almost all their areas of expertise

---

Believe a company called Tellurian was at least exploring the model, although I'm not sure if they've actually drilled anything as I have no real experience with Haynesville. Think they may have been more focused on LNG/trading and added or attempted to add upstream to source the gas.

Agree, I think both sides, upstream and the lng exporters have their hands full in their respective areas.

Really need to be an integrated to go full life cycle and that takes a ton of cash.

Tellurian is pursuing that idea in reverse. It has acquired some acreage and drilled a few wells but they need a lot more for their model. Most upstream companies would have to really think about taking on an integrated model.

Tellurian is run by former Cheniere CEO, Charif Souki. Souki was the first to the coast, but originally designed to import LNG. Their ops group are former HK Haynesville engineers.

Comeby! said:

---

Tellurian is run by former Cheniere CEO, Charif Souki. Souki was the first to the coast, but originally designed to import LNG. Their ops group are former HK Haynesville engineers.

---

There are a lot of former SWN folks at TELL as well….wouldn't be surprised of potential joint ventures down the road.

My understanding is that TELL was working with a Japanese company to get a pipeline built to the coast to export gas, but that was a couple years pre-covid. No idea where it is today.

mts6175 said:

---

My understanding is that TELL was working with a Japanese company to get a pipeline built to the coast to export gas, but that was a couple years pre-covid. No idea where it is today.

---

Tell is supposed to start construction on their export plant in the summer. The stock popped quite a bit on the news, then settled back down. I've been trading it in the $3-$4 range the last few months. Hopefully they'll get moving on construction and we will get a nice run soon.

Where is it supposed to be?

Sea Speed said:

---

Where is it supposed to be?

---

lake charles

Ok thats what I thought. They have another one coming on line right now dont they?

Lake charles that is.

OPEC+ AGREES TO STICK TO EXISTING POLICY WITH 400,000 BPD OUTPUT INCREASE IN FEB - SOURCE

— zerohedge (@zerohedge) January 4, 2022

Tellurian has not started construction yet on their terminal although they claim they now have contracts in place to sell all the LNG production of phase 1.

They are also running a one rig program in the Haynesville in 2022.

https://d1io3yog0oux5.cloudfront.net/_4d95891a105224172d8d18ce92044f4a/tellurianinc/db/353/2952/pdf/Corporate_Presentation_November_2021_Final.pdf

Rig count seems to be really picking up steam, I guess as operators are able to drill more and stay within cash flow (as now required) due to rising commodity prices. So the circle continues.

I wouldnt say that. I think you are going to see the private guys exit in the upcoming year once cash flow is sufficient. Private companies have roughly 50% (dated info so may be slighltly off) of rigs running. The only way to exit is to get enough production where it's accretive for public buyer.

or...you can go the Colgate route.

Shaleprofile's dashboard paints an interesting picture. Total production is relatively flat all while adding 500k barrels a day in production to offset declining wells. (Data lags a quarter).

It's only one piece of the puzzle, but so is rig count. Outside investing is still crazy low. The more we move sideways at $80 and focus on self funded cash flows, the more likely prices pop off once supply really dwindles out and/or demand returns to pre-pandemic levels.

Some of these companies would be crazy not to take advantage of $80 oil prices. New drilling will be riskier, but some of these recompletions payout really quickly at these prices. There should be plenty of projects where people can up their production and get their money back before too long.

Joseph Parrish said:

---

Some of these companies would be crazy not to take advantage of $80 oil prices. New drilling will be riskier, but some of these recompletions payout really quickly at these prices. There should be plenty of projects where people can up their production and get their money back before too long.

---

Please no.

one MEEN Ag said:

---

Joseph Parrish said:

---

Some of these companies would be crazy not to take advantage of $80 oil prices. New drilling will be riskier, but some of these recompletions payout really quickly at these prices. There should be plenty of projects where people can up their production and get their money back before too long.

---

-Every Permian Operator Exec Team (2010-2020)

---

Everybody on the conventional side should be increasing their budget. Absolutely. If you get a payout in 6-9 months then your activity should pick up. For unconventional I can see people being more hesitant.

I fully support recompletions. I think there is a lot of value to be unlocked. If you consider the power of shale fracking to access more OOIP and how much progress we have made since the beginning of that, there is a ton of oil accessible via already existing wellbores imo.

BrokeAssAggie said:

---

Good luck getting casing

---

Yeah. Don't think we could expand beyond our original plan even if we wanted to

Joseph Parrish said:

---

one MEEN Ag said:

---

Joseph Parrish said:

---

Some of these companies would be crazy not to take advantage of $80 oil prices. New drilling will be riskier, but some of these recompletions payout really quickly at these prices. There should be plenty of projects where people can up their production and get their money back before too long.

---

-Every Permian Operator Exec Team (2010-2020)

---

Everybody on the conventional side should be increasing their budget. Absolutely. If you get a payout in 6-9 months then your activity should pick up. For unconventional I can see people being more hesitant.

---

This!
6-9 months is a great payout and there's no difficulty raising capital (even small recompletion capital) around that.
Finding true 6-9 month payout projects are the limitation right now IMO.

GarlandAg2012 said:

---

I fully support recompletions. I think there is a lot of value to be unlocked. If you consider the power of shale fracking to access more OOIP and how much progress we have made since the beginning of that, there is a ton of oil accessible via already existing wellbores imo.

---

I like this idea, but where does it work? In the Permian, frac pressures are too high to go into an old Devonian or Fusselman well and frac through 20+ year old casing. Those wells will probably need remedial cement work since they were cemented with the idea of recovering casing if they didn't produce very long. The alternative is frac'ing through tubing, under a packer, at reduced rates which isn't really appealing either. There are likely small pressure pumping companies that will do vertical stage work, but all the big companies want to multi-well pad, horizontal jobs.

You see a lot of it being promoted in the Haynesville (LA side)

I saw some on the Texas side (Bossier). Promoted BS. I hate promoted deals. After the carry and 'fees', payback is 5 years. Stupid.

Joseph Parrish said:

---

one MEEN Ag said:

---

Joseph Parrish said:

---

Some of these companies would be crazy not to take advantage of $80 oil prices. New drilling will be riskier, but some of these recompletions payout really quickly at these prices. There should be plenty of projects where people can up their production and get their money back before too long.

---

-Every Permian Operator Exec Team (2010-2020)

---

Everybody on the conventional side should be increasing their budget. Absolutely. If you get a payout in 6-9 months then your activity should pick up. For unconventional I can see people being more hesitant.

---

This is exactly what I have been doing since I got laid off in 2020 (onshore conventional exploration geoscientist). We've not found it hard to find capital, but people are very diligent. That is a good thing.

I have done some re-entry/recompletion stuff that has been successful and will be moving to find capital for my exploration projects very soon. I was able to find funding for seismic and lease dollars somewhat easily as there is an appetite for projects that aren't so huge like unconventionals and have analogs that provide confidence in cash flow and risk/return projections.

https://www.prnewswire.com/news-releases/navitas-midstream-announces-sale-to-enterprise-products-partners-lp-301456823.html

Good way to start the year off for M/A activity.

WTI up over $81 today

Inventory report must have leaked. I bet its a ~10 million bbl draw
putting us very close to the 400 mmbo mark for US storage

I'm sure there's an easier way but an up to date nautical chart should have them.