American Oil and Gas Reporter - August 2017 - 89

Calland says.
"Generally, extensive leasing (or topleasing) or the acquisition of new parcels
by natural gas producers, seems less
likely in the near term," the report describes. "However, established and wellfunded natural gas producers, as well as
recently formed private equity-backed
entities, may well have the ability to take
advantage of the current price environment
(to the extent landowner expectations
have adjusted appropriately) to conduct
leasing at attractive prices."
In addition to focused upstream transactions, Babst Calland says there likely
are a number of smaller midstream transactions that will make sense in the Appalachian Basin. Midstream operators
seeking to dispose of assets in areas
where wells have proven less productive
than anticipated may find some interest
from buyers backed by private equity,
assuming the deals are large enough to

establish a meaningful foothold in the
market, the report poses.
"The Appalachian Basin has reemerged to become a leading producer,
prices have stabilized, pipeline projects
are coming on line, and the future of
downstream markets is beginning to come
into view," Upstream, Midstream and
Downstream describes. "Yet, dynamism
remains a big part of the story with significant acreage and assets changing
hands, new entrants to the upstream and
midstream markets, the evolution of
energy markets and fuel mixes, and the
seemingly never-ending new requirements
from the federal, state and local levels of
government. Capital investments are picking back up, but remain tempered by the
backdrop of very recent tough times as
evidenced by both industry balance sheets
and a destabilized supply chain."
To request a copy of the report, contact
info@babstcalland.com.
r

USGS Ups Resource Estimates
For Bossier, Haynesville Plays
WASHINGTON-The Bossier and
Haynesville formations contain estimated
means of 4.0 billion barrels of oil, 304.4
trillion cubic feet of natural gas, and 1.9
billion barrels of natural gas liquids, the
U.S. Geological Survey says in its updated
assessment of onshore and offshore resources.
USGS says the estimates of the largest
continuous natural gas assessment it has
yet conducted include petroleum both in
conventional and continuous accumulations, and costs of undiscovered, technically recoverable resources.
The Bossier and Haynesville lie in
the Gulf Coast Basin, which extends from
the Texas-Mexico border to the Florida
Panhandle, the survey describes. USGS
says it estimates the Bossier Formation
holds means of 2.9 billion barrels of oil,
108.6 Tcf of gas and 1.0 billion barrels
of NGLs, while it projected the Haynesville contains means of 1.1 billion
barrels of oil, 195.8 Tcf of gas and 900
million barrels of NGLs.
"As the USGS revisits many of the
oil and gas basins of the United States,
we continually find that technological
revolutions of the past few years truly
have been a game-changer in the amount
of resources that now are technically recoverable," says Walter Guidros, program

coordinator of the agency's Energy Resources Program. "Changes in technology
and industry practices, combined with
an increased understanding of the regional
geologic framework, can have a significant
effect on what resources become technically recoverable. These changes are why
the USGS remains committed to performing the most up-to-date assessments
of these vital resources throughout the
United States and the world."
According to USGS, its assessments
are probabilistic, yielding a range of possible resource amounts. For the Bossier
Formation, it says the gas assessment
ranges from 37.1 Tcf to 223.5 Tcf. For
oil, the assessment ranges from 1.2 billion
to 1.5 billion barrels. For NGLs, the survey's assessment ranges from 424.0 million to 2.0 billion barrels.
The Haynesville formation ranges
from 96.3 Tcf to 341.0 Tcf of natural
gas, USGS describes. For oil, its assessment ranges from 286 MMbbl to 2.5 billion barrels, while the assessment for
NGLs ranges from 3.4 MMbbl to 1.7
billion barrels.
The new assessment is available online
at https://energy.usgs.gov/GeneralInfo/EnergyNewsroomAll/tabId/770/artmid/3941/
articleid/1284/Bossier-and-HaynesvilleFormations.aspx.
r

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AUGUST 2017 89

https://energy.usgs.gov/GeneralInfo/EnergyNewsroomAll/tabId/770/artmid/3941/articleid/1284/Bossier-and-Haynesville-Formations.aspx https://energy.usgs.gov/GeneralInfo/EnergyNewsroomAll/tabId/770/artmid/3941/articleid/1284/Bossier-and-Haynesville-Formations.aspx http://www.aoghs.org https://energy.usgs.gov/GeneralInfo/EnergyNewsroomAll/tabId/770/artmid/3941/articleid/1284/Bossier-and-Haynesville-Formations.aspx

American Oil and Gas Reporter - August 2017

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