Small Companies Anticipate an Improving Natural Gas Market
According to a recent article in “Rigzone”, severe winter weather resulted in natural gas stockpiles at their lowest levels since 2003. Small energy companies see this as a harbinger of higher prices and increased profitability.
Swift Energy Company is already seeing improved financial performance by its properties in the Eagle Ford Shale in South Texas. However, more pipeline capacity to take their gas to Gulf Coast markets is currently a limiting factor. Swift is also looking at Mexico as a potential market for gas from their Fasken Field along the Rio Grande River.
Haynesville (North Louisiana) and Barnett (North Texas) shale gas operations are also expected to benefit from increasing prices as well. Matador Resources expects investment increases of 3-6% in the Haynesville. Quicksilver Resources, buoyed by an anticipated price increase, and an injection of capital from Tokyo Gas, has already resumed drilling in the Barnett.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/132534/ .