Rig Count Up in Anadarko, Appalachian Basins

Four rigs were added to the Anadarko Bain rig count during the past week, according to Enverus. The data firm listed Continental Resources Inc., Ovintiv Inc. and Citizen Energy LLC as the region’s most active operators, accounting for 50% of the active rigs. Additional week-over-week increases also occurred in the Denver-Julesberg Basin, the Texas-Louisiana Gulf Coast and Permian basins, with each adding a single rig.

Over the last month, Appalachia has added four rigs, bringing the total to 32, as the outlook for natural gas remains positive. Spring, Texas-based Southwestern Energy Co. added a third rig at the beginning of September and the company remains active in West Virginia. Chesapeake Energy Corp. increased its activity to five rigs in mid-September after running a four-rig program since mid-May. Seneca Resources, which recently acquired Royal Dutch Shell Plc’s Appalachian position, jumped to two rigs this week, following two months of a one-rig program.

The Haynesville rig count remained flat during the period (32 rigs). The play has been slowly begun a comeback since its rig count was 24 at the end of April. At its 2020 peak in early January, the Haynesville rig count was 45. Appalachia’s activity levels fell to a 2020 low of 28 in late July and had been as high as 50 in late February.

While U.S. oil prices are still down about 35% since the start of 2020 due to the effects from the coronavirus, WTI crude futures have gained 112% over the past five months to about $40/bbl on Sept. 25, mostly on hopes global economies and energy demand will reutrn back as governments lift lockdowns.

Analysts said those higher oil prices have encouraged some energy firms to start drilling again.

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