Jerry Jones, owner/general manager of the National Football League’s Dallas Cowboys, has taken a fancy to Louisiana’s Haynesville Shale, calling it the best play for low-cost hydrocarbons and that he’s hunting for more acreage there.
The billionaire NFL owner has always been somewhat of a contrarian. He made enough money in the oil business to buy the NFL club in 1989, at a time when it was bleeding cash and built it into the world’s most valuable franchise.
When the worst crude-price crash in a generation began roughly five years ago, producers went west, to the Permian Basin of West Texas/southeast New Mexico to make money. Jones, however, is looking to make money elsewhere, Kallanish Energy learns.
“The gas in the Haynesville is the best-cost hydrocarbons in the industry,” Jones, 77, said in a telephone interview this week with Bloomberg. “My immediate plan is to continue to aggregate long-term reserves to have the most efficient source of natural gas.”
Earlier this month, Jones confirmed his Comstock Resources is in talks to acquire shale gas assets in Louisiana from financially strapped Chesapeake Energy, in a deal that could be valued at more than $1 billion.
In June, in another billion dollar deal, Comstock announced plans to acquire Covey Park Energy LLC, a closely-held natural gas company with operations in the Haynesville area.
Jones told Bloomberg his long-term plans are to buy up oil and gas assets through Comstock, in which he owns a 73% stake.
Primarily a gas play, the Haynesville has seen the number of rigs drilling wells there steadily drop over the past decade. The roughly 53 rigs working there now is off more than 66% from early 2011, according to Baker Hughes Co. data.
Comstock shares have plunged 95% since July 2014, when crude prices first began to drop. While rival producers have sought to pump more oil, Comstock has shifted deeper into gas by reducing crude to just 9% of output in 2018, from 39% in 2014.
This post appeared first on Kallanish Energy News.