Since October, rig counts in the Fayetteville have been stable at around 30 units.  This trend is likely to continue since a majority of capital going into the play is directed at development drilling.  Southwestern Energy has been the most active operator with an average of 13 rigs in recent months.  ExxonMobil’s XTO subsidiary and Chesapeake have also been active in the play.  Its subsidiary contractor, Desoto Drilling, performs most of Southwestern’s drilling.  Other contractors active in the play include Union Drilling, Nomac and Keen Energy Services.

Persistently low natural gas prices have weighed on drilling activity in the Arkoma Woodford, the legacy Woodford play, in recent months.  Since yearend, the number of rigs drilling in the play has fallen by four to 18 rigs.  On a positive note, rig levels may find support now that two majors, BP and ExxonMobil, are some of the most active in the play.  Cactus has been the most active contract driller in recent months with seven rigs.

Some analysts have noted the continuing decline in the U.S. gas rig count this year fitting their thesis of higher gas prices this year. Yes, the overall gas rig count has fallen by 9.3% since yearend 2010. But the combined number of natural gas-directed rigs in the major shales and tight sands plays has fallen only 5% this year and only 3% since midyear 2010, notes The Land Rig Newsletter’s Unconventional Drilling Report.

There is other evidence pointing to persistent underestimates of forecast gas production growth from the unconventionals. The Haynesville dropped 16 rigs in the last 3 months that it added 500 MMcfd to production. It’s time to rethink the widely assumed 6-month lag time between rig count decline and production decline. In addition, Eagle Ford gas production jumped fourfold in 2010 from 2009-pretty impressive for a play touted for its liquids. Look for unconventional gas output to expand continue expanding this year even as its rig count falls. If gas prices rise this year, it won’t be because of a production drop.

Dril-Quip, Inc. has been awarded a contract by Chevron U.S.A., Inc. to supply drilling equipment for the Big Foot Tension Leg Platform (TLP) to be installed in the Big Foot field located in the Walker Ridge area. In addition, the company will provide subsea wellhead and specialty connector equipment to the project as well.

Global Industries, Ltd. has been awarded a project from LLOG Deepwater Development Company for the installation of a deepwater subsea development. The project, which will take place in Mississippi Canyon 503/547, is located in 3,000 feet of water and is scheduled to begin in May.

Noble Corporation has exercised an option with Singapore’s Jurong Shipyard to build two additional Friede & Goldman (F&G) JU3000N high-spec, heavy duty jackups. Cost for each rig, including project management, spares and start-up costs, is $235 million, with deliveries scheduled for the third quarter of 2013 and first quarter of 2014. With the orders, Noble now has four jackups under construction and the company has options for another two units available, with exercise due by January 1, 2012. The F&G jackups are rated to drill in up to 400 feet of water and will have a rated drilling depth of 30,000 feet. Each rig will have a cantilever reach of 75 feet, a 2.5 million pound hookload capacity and a 15,000 psi blowout preventer system (BOP), along with accommodations for up to 150.

Diamond Offshore has received an extension from South Korean shipyard Hyundai Heavy Industries on an option for the yard to build a third drillship. The original option was due to be exercised by March 31, 2011, but has been pushed out to May 16, 2011. Diamond originally ordered the Ocean BlackHawk from Hyundai in early January and exercised its first option a month later when it ...

Contango Oil & Gas Company has drilled a successful exploratory well at its Swimmy prospect on Vermilion 170. The company estimates this well to have 48 BCF of natural gas and 1.2 mmbbls of condensate.

Plains Exploration & Production Company (PXP) is evaluating alternatives to separate its deepwater and onshore businesses, which include separately capitalizing its deepwater business through a joint venture or outside capital and then either spinning-off or divesting these assets.

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) approved three deepwater permits this past week, bringing the total of approvals to six since the deepwater drilling moratorium was lifted last October. Two of the three are designated by the agency as completely new exploration, defined as exploration drilling in a field or reservoir that has never produced. The first approval, on March 22, was ExxonMobil’s revised permit application to drill the #3 well in Keathley Canyon 919 in 6,941 feet of water.

The permit was the first to designate the Marine Well Containment Company (MWCC) containment system of which ExxonMobil is a member. The operator had an approved permit and had moved Seadrill semi West Sirius on location when deepwater drilling operations were suspended. On March 24, the agency approved Chevron’s revised permit to drill the #1 well in the Moccasin prospect in Keathley Canyon 736. The BOEMRE said this was the first approval for completely new deepwater exploration drilling under the new regulations. Water depth at the site is 6,730 feet. Chevron was about 80 percent of the way done with the original 29,000 foot well with Transocean drillship Discoverer Inspiration when operations were halted on ...