• Barclays Capital: Rig Counts Being Driven by Independent Producers

• EOG Resources to Increase Focus on Liquids; Announces Acreage Sale in Marcellus, Haynesville, and Eagle Ford
• August 2010 Frac Spread: Conway Ethane Margins Return to Profitability
• Haynesville Production Necessitates Infrastructure
• Marcellus Gas Investors Remain Bearish; Strong Returns Should Prevent Capex Reductions
• Roll the Dice; Oily Plays are the Ticket, Says Wunderlich's Dingmann

• Spectra Energy Completes Bobcat Acquisition
• Energen to Acquire Wolfberry Holdings for US$185M
• Statoil Outlines Plans for U.S. Marcellus Operations
• Petrohawk's Low-Gas-Price Plan: Lay Down Rigs

• Frac Spread Margins Increase Across the Board as Gas Prices Retreat

• NGL Prices Gain Strength as August Closes

• Iran-Turkey Gas Pipeline Hit by Blast, Flow Stopped for Repair

• Saudi Arabia, Kuwait Partnership Plans to Build NGL, Gas Facilities

EOG Resources to Increase Focus on Liquids; Announces Acreage Sale in Marcellus, Haynesville, and Eagle Ford

EOG Resources Inc. is following the trend of many E&P companies by increasing its focus on its liquids production with the bulk of this focused on oil and 25% being natural gas liquids (NGL). The company announced during its conference call to discuss 2Q earnings that it believes its holdings in the Leonard/Upper Bone Spring/Avalon shale play have a reserve potential of 65 million barrels of oil equivalent.

August 2010 Frac Spread: Conway Ethane Margins Return to Profitability

Overall, August was a stronger month for natural gas processors than was July. The biggest plus for the natural gas liquids (NGL) market in the month was the return to profitability of Conway ethane coupled with the strong increase in margin for Mont Belvieu ethane.

Haynesville Production Necessitates Infrastructure

The Haynesville shale is primarily located in the ArkLaTex basin and, as the basin name implies, it spreads over northwest Louisiana, northeast Texas and barely through southwest Arkansas. With a resource potential of some 150 trillion cubic feet of gas (roughly 60% that of the Barnett), in addition to an early-stage superior recovery factor and other geological characteristics that rival the best shale plays, the Haynesville has established itself as the most promising gas shale, among some producers.

Marcellus Gas Investors Remain Bearish; Strong Returns Should Prevent Capex Reductions

Companies are more sensitive to their levels of spending in 2011, especially due to the market punishing companies for increased spending during 2Q.

Roll the Dice; Oily Plays are the Ticket, Says Wunderlich's Dingmann

Oil bulls take note: the push toward black gold continues as both companies and investors remain cautious to downright bearish on natural gas, according to Wunderlich Securities Inc. analyst Neal Dingmann.

Spectra Energy Completes Bobcat Acquisition

Spectra Energy completed its previously announced US$540 million acquisition of the Bobcat Gas Storage project and its associated assets from Haddington Energy Partners III LP and GE Energy Financial Services (see Gas Processors Report 07/20/10).

Energen to Acquire Wolfberry Holdings for US$185M

Energen Resources Corp. signed an agreement to acquire 8,700 net acres of land in the Permian basin from a private seller for US$185 million. The bulk of the land is in the Wolfberry trend in Martin County, Texas.

Statoil Outlines Plans for U.S. Marcellus Operations

Wood Mackenzie analysts estimate world reserves of unconventional gas at approximately 1,895 trillion cubic feet (Tcf). Regions such as the Middle East, Latin America, and Australia are expected to contain modest amounts of shale gas – 25 Tcf, 13 Tcf, and 78 Tcf respectively. Medium strength resource potential exists in Africa (83 Tcf), Europe (145 Tcf), and Asia (203 Tcf), but North America is the current frontrunner in this resource area, holding the lion's share at 1,348 Tcf.

Petrohawk's Low-Gas-Price Plan: Lay Down Rigs

Big players step up in big games, and at EnerCom's The Oil and Gas Conference in Denver last week, Floyd Wilson, chairman and CEO of Petrohawk Corp., tried for a big save in the low-natural-gas-price game.

Frac Spread Margins Increase Across the Board as Gas Prices Retreat

The continued depression of natural gas feedstock prices combined with positive results for natural gas liquid (NGL) prices pushed frac spread margins up across the board with Conway ethane once again seeing the biggest improvement.

NGL Prices Gain Strength as August Closes

Natural gas liquid (NGL) prices approached their highs for August in the final week of the month at Mont Belvieu and came in just below a four-week high at Conway as spot market prices were pushed up due to higher month-end volatility.

Iran-Turkey Gas Pipeline Hit by Blast, Flow Stopped for Repair

Iranian natural gas flows to Turkey were halted after an explosion. It could take up to a week to resume normal operations after repairs are completed, officials at Turkish pipeline operator Botas said.

Saudi Arabia, Kuwait Partnership Plans to Build NGL, Gas Facilities

Al-Khafji Joint Operations Company, a partnership between Aramco Gulf Operations of Saudi Arabia and Kuwait Gulf Oil Co., is planning to build facilities to collect and distribute natural gas and natural gas liquids (NGL) from the Khafji oilfield located in the neutral zone between Saudi Arabia and Kuwait.

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