American Oil and Gas Reporter - February 2021 - 41

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IssuesUpdate: Louisiana Oil & Gas Association

Haynesville A Bright Spot For Drilling
JENA, LA.-When it comes to belowground considerations, The Pelican State
has plenty going for it, reflects Louisiana
Oil & Gas Association President Jim Justiss.
" We potentially have a couple of emerging plays in the right price environment, "
suggests Justiss, president of Justiss Oil
Co. in Jena. " The Tuscaloosa Marine
Shale contains a tremendous amount of
oil reserves, and prior to COVID, interest
was budding in the Austin Chalk. "
According to Justiss, Northwest
Louisiana's Haynesville Shale is particularly compelling. " It is our state's shining
star, " he assesses. " It is one of the most
(if not the most) economically attractive
shale gas plays in the United States, and
it should continue to shine as long as the
federal government does not do anything
to halt hydraulic fracturing. "
In fact, notes LOGA Interim President
Mike Moncla, the Haynesville is the
United States' only unconventional shale
play that ended 2020 with more active
rigs than it had when the year began.
" North Louisiana has the best spot in the
United States, " he claims. " Although several basins are picking up rigs now, many
of them are still way down from 12
months ago. Meanwhile, the Haynesville
has picked up 6% year on year. "
Gas Looking Good?
Moncla attributes interest in the Haynesville to a simple fact: " It produces
gas, " he suggests. " Gas hit $3 dollars a
few months ago. About the time we started
to get excited, the price slipped quite a
bit, but it has improved some since then. "
As for prices on the horizon, Justiss
points out that some analysts predict a
tight gas market, regardless of the relatively
mild temperatures that have characterized
the winter so far.
" Of course, there is talk that colder
weather still may be on its way, especially
for the East Coast, " he relates. " Then
there is the fact natural gas burns relatively
clean compared with other fossil fuels. "
The Haynesville's proximity to LNG
export terminals and other markets contributes to its appeal, Justiss mentions. " The
reservoir is buried very deep and exerts
considerable pressure to send gas to surface, "
he adds. " Those are critical components. "
Regarding Louisiana's prospective oil
plays such as a revitalized Austin Chalk,
Moncla concurs with Justiss's assessment

that aboveground conditions simply need
to improve for producers to begin taking
advantage of the belowground ones.
" We were hoping it was about to get
off the ground, " Moncla affirms. " Our
family business went into the Austin
Chalk and did the first completion, and
then we were awarded the saltwater disposal to go along with that well. Then
COVID hit and, after a while, the entire
project was cancelled. The play has not
proven out yet and everything seems to
be shut in. "
But if oil prices recover and exhibit
some stability, Justiss predicts, the
Austin Chalk can follow the pattern of
many successful unconventional plays.
" There will be spotty success at first, "
he acknowledges. " Then an operator
will break the code, whether it's a
matter of extended laterals, tweaks to
the fracture design or something else,
and it should improve those wells' predictability and productivity. "
Interim Presidency
In September, when LOGA's president
at the time, Gifford Briggs, accepted an
offer to become Gulf Coast region director
for the American Petroleum Institute, the
association faced a quandary. Immersed
as it was in pressing work such as supporting Constitutional Amendment-2, the
association could not afford to break
stride. By the same token, the Board of
Directors wanted to avoid a rash decision
in picking LOGA's top staffer.
Enter Moncla, a third-generation oilman
who, along with being vice president of
marketing at DrilTech LLC in Youngsville,
La., and a partner at Moncla Workover
& Drilling in Lafayette, La., had served
on LOGA's Board of Directors for about
15 years and on the Executive Committee
for four.
" We did not want a knee-jerk reaction
in which we would be forced to hire
someone fast, " he recounts. " I thought I
would enjoy the job, so I put my name in
the hat, and they took me up on it. "
According to Justiss, that was because
the directors were confident in Moncla.
" We were all pleased, " he affirms. " We
already know Mike, his character, personality and professionalism. "
The chairman is quick to add that
Moncla's performance has not surprised
him, but only because he already believed

it would impress.
" Maybe the few who do not know
Mike very well have been surprised at
how capable he has been, " Justiss muses.
" I had high expectations to begin with
and have not been disappointed. "
While most of LOGA's leaders expected Moncla to take to the position,
Moncla admits that sitting in the president's
chair held many surprises for him, not
least of which was an unexpected special
legislative session.
" We were not supposed to have a session until April, but a special session
kicked off about a week after I took the
job, " Moncla chuckles. " I had to get my
lobbying badge really quick. "
Having spent so many years working
for oil and gas producers as a service
provider, Moncla says his current occupation
simply feels like an extension of that. " It is
very rewarding to fight for Louisiana operators, " he reflects. " I grew up in Louisiana
and always have known how much the industry brings to the state in the form of
taxes and economic activity. Despite that,
I had a hard time explaining the value we
bring to legislators from different areas at
first. That was enlightening. "
Also enlightening is how much punditry is involved with the presidency. " I
had to get some media training, " Moncla
acknowledges. " It was eye-opening to
learn how an interviewer can try to
paint you into a corner, and how to
make sure you talk about the matters
you want to discuss. "
Although its March 4-6 dates allowed
LOGA to hold its 2020 convention, Justiss
says pandemic realities have left the 2021
conference up in the air.
" We sweat that question on every Executive Committee conference call and
have tried to be as fluid as we can, "
Justiss reports. " We have thought about
downsizing it and having it sooner, but
the dynamics of the disease can change
and make any set plans imprudent. We
are leaning toward an in-person meeting,
but it probably is going to be much later
in the year than we would like. "
After all, he admits, virtual events
have their charms, but they can never
take the place of face-to-face gatherings.
" I miss everybody, " Justiss says. " Virtual
meetings may be efficient, but there's a
social element to talking in person that I
can't wait to get back to. "
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FEBRUARY 2021 41
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