A&D-The Workshop: Unconventional Gas
April 6, 2009
“Why This Gas Price? The Outlook For Return On Investment”
What’s driving current natural gas market prices and factors that may influence future prices, including a projection for LNG dumping into onshore U.S. pipes, are described here.
Dave Pursell, Managing Director, Head of Macro Research, Tudor, Pickering, Holt & Co. LLC
“The New Washington: Law And Policy That May Affect The Value Of Unconventional Resources”
There’s a new administration in the White House and a new Congress on Capitol Hill. While arguments over energy policy have cooled since the $4-plus transportation-fuel prices of the summer of 2008, the alarming economic indications of US$147 oil remain apparent. What’s on the agenda in Washington, and how will this affect U.S. unconventional-gas development?
“Current Unconventional-Resource A&D Price Metrics”
While unconventional-resource plays remain stalwarts of potential across the onshore U.S., sticker prices are falling—as is the case for any oil and gas asset today—but may be affected more due to the lease-expiration nature of the nascent plays and the financially distressed situation of some players. What’s it cost now to enter or expand in each play?
Ward Polzin, Managing Director - A&D, Tudor, Pickering, Holt & Co. LLC
“Funding Unconventional-Resource Acquisitions Today”
Land deals are often funded from cash flow or existing credit facilities—two capital resources that are constrained today. Built-up cash powder and stock-for-stock merger are mostly the means of acquiring entry or expansion in an unconventional-resource play now. Here’s why.
M. Lynn Bass, GasRock Capital LLC
“Unconventional Bust: The Great Land-Expiration Rush”
Billions of dollars were dropped into acquiring acreage in unconventional plays in 2008, and then commodity prices—thus cash flow for drilling to hold leases by production—collapsed while access to debt and equity markets retreated. Some lease terms are for only three or five years, while some are secured by longer terms, existing shallow rights or outright ownership. The nature of lease terms, by play, is described here.
Randy King, Partner, Porter & Hedges LLP
“New SEC Rules, New Valuations Of Unconventional-Resource Reserves?”
The rules have changed and go in effect with year-end 2009 financial reporting. How do the new parameters affect valuation of unconventional-resource reserves, in particular? And, will the effects begin to seen before year-end?
Scott Rees, Chairman and CEO, Netherland, Sewell & Associates, Inc.
“Got Pipe? Forward-Looking Basis Differentials, And Getting Production To Market”
Some unconventional resources are ready to produce yet are awaiting gathering and big pipe. What are the current take-away capacities by play? And, what are the forecasted basis differentials? Is stranded unconventional gas possible? Will it shut in conventional resources?
Tom Sherman, Senior Energy Analyst, Bentek Energy LLC
“Tips, Tricks and Traps: Advice From The Unconventional Gas A&D Pros”
Community relations. Technical competency. Staying ahead of lease expirations. Sell or bring in a drilling partner? Unconventional plays can come with challenges that may be outside a potential buyer’s existing toolbox. For example, many plays require horizontal drilling, and more challenging and expensive completions. And, many plays involve urban or activist surface-rights owners. Here, in a roundtable discussion, veterans in unconventional gas M&A and operations share their wisdom on successful deal-making and asset development.
- Chad Stephens, SVP-Corporate Development, Range Resources Corp.
- Timothy L. Petrus, Executive Vice President - Acquisitions, XTO Energy Inc.
- Blaine Stribling, Asset/Corporate Development Manager, Comstock Resources
