Bossier Shale, Don’t get it confused with The Haynesville Shale!

The Bossier Shale could potentially affect the value of thousands of acres of land already held by Independent Oil and Gas Produces such as Petrohawk (HK) and Chesapeake (CHK). The Bossier Shale is an entirely separate geological play, in the same geographical area of the Haynesville shale, that is producing a lot of Nat Gas. Does this mean the supply held in this region is twice as much as already calculated? Does this make the Leaseholds twice as valuable? Or could this be the supply that floods the market and depress an already historically low price? This could also ruin the value of both companies by futher saturating the market with new Natural Gas supplies. Massive Underground Storage Facilities have record inventories due to production increases from unconventional shale plays. A new Technology in Drilling called "fracking" is opening up shale gas plays across the country. The Haynesville Shale is said to be the largest gas find in the lower 48 states.
All the players in this shale seem to be tapping into it. They are releasing their results but have not seemed to bolster the news with much fanfare. There has been a lot of insider stock buying going on across the industry. Future Options are bullish on Petrohawk (HK) partly because of the under-valuation of the company and its potential as a takeover target by cash rich oil and gas giants. Chevron recently announced it takeover of Atlas energy. Carl Ichans has announced that he had purchased a minority interest in Chesapeake (CHK). It could be a value play on his part or he might be taking an environmental stand. Either way benefits all the Natural Gas producers. Even the depressed price on Nat Gas has not slowed down drilling to protect leaseholds. That could be interpreted that that is a strong indication that these companies are confident in their futures.

Petrohawk (HK)

Petrohawk Energy Corporation - is an independent energy company and a leader in the exploration and development of shale-based oil and natural gas resources in the U.S., with properties concentrated primarily in and East the Haynesville Shale and Lower Bossier Shale of Northwest Louisiana Texas, the Fayetteville Shale of Central Arkansas, and the Eagle Ford Shale of South Texas.

Bull Ideas:

• Profitable: Yea its always good for a stock to have positive cash flow; Petrohawk is making money on Natural Gas while it is at some All-time lows. It is also still expanding and has increased production.
  
• Possible Buy Out Target: Company Founder has a Past track-record of selling energy companies once production has begun for great profits. Chevron (CHV) has recently acquired, Atlas, a similar size natural gas producer. ConocoPhillips (COP) RoyalDutch Shell and Exxon are beginning to invest in Natural gas through direct investment and acquisitions of regional Energy players. Electrical utilities looking to improve the cost of buying natural gas have begun investing in regional Natural Gas producers.
  
• Expansion of Consumption: One of the reasons Natural Gas prices are at all time lows is that there is more supply than demand. Petrohawk is at an advantage because demand is growing inside of the Haynesville shale allowing Petrohawk to provide NatGas more efficiently by reducing transporting across long pipelines. AEP has recently built a Modern Natural Gas Electrical generator in Shreveport LA. Bossier City LA has installed first of two CNG pump stations for Vehicles. Chesapeake Oil and Gas (CHK) land city vow to move vehicles to CNG consumption
  
• Environmental: Burns cleaner than conventional gasoline. President Obama offers to back Pickens Plan during speech. The reasons go on and on. Its almost impossible to list them all. The famous Billionaire, Investor, Environmental Activist Carl Icahn recently revealed a 7.5% stake in (CHK).
  
• China: OK this is a new one for a lot of people but The United States could actually be an energy exporter! Two companies that I know, Cheniere Energy Partners (NYSE:CQP) of have applications into the US Energy Dept to begin Export of Natural Gas.
  
• Bossier Shale: Don't get the Haynesville shell, and the Bossier Shale confused. (Read My Article)