Holy Haynesville, Batman!
If you're familiar with the initial production rates of onshore natural gas wells, in addition to Adam West's turn as the Caped Crusader, that's what you found yourself saying yesterday morning.
No? Just me? That's fine. You should still be excited about this news.
On Tuesday, two different companies released data on some well completions in the Haynesville Shale -- which was already red hot before we had much of any production data. Back in July, the biggest well I'd caught word of was a Petrohawk
Petrohawk has announced three completions ranging from 21 to 28 Mmcfe per day, for a total of 73 Mmcfe per day. The Houston-based shale hunter didn't divulge its cost to drill and complete these monsters, but if we assume $7 million, which is the higher end of the numbers I've seen, then these wells will pay for themselves quickly -- probably within two months.
There were some other noteworthy well results this week. Northern Oil & Gas
Still, the Haynesville is the biggest story in onshore production today. In a low commodity price environment, these are going to be pretty much the last rigs to be laid down. If you're holding a Haynesville player with a strong balance sheet and a prudent spending plan for 2009, I would recommend hanging on tight. If you're on the outside looking in, Encore Acquisition
Encore is being shown no love in Motley Fool CAPS, with a meager two-star rating. I think Fools are getting this one wrong, and I'm casting an outperform vote. You can join me right here, if you find its financial/leasehold position equally compelling.