BP's option in haynesville was part of an old deal whereby what Exco does they get an option to be a 50% partner. This predates Ross involvement in Exco. So the question is why did BP refuse the option?
1. Miller/Exco paid too much. Why would you pay $270 bucks for something worth $200????
2. BP does not want to be involved with Exco or Ross on anything. Sooner TGGT is gone the better. They'll never get control so walk.
the IRRs at not compelling enough for BG unless XCO can get well costs down into the 5s like Encana has been chatting about....the old manufacturing program needs an update which is why smitty is gone.....might doug go too? maybe but he seems to have some allure with the troops.....gl
It is BG (British Gas), not BP. Other speculation has been the BG has been scaling back US operations, as evidenced by this comment in the news on Sept 9: BG Group said that as a result of the lower gas prices in North America, brought on by the shale gas boom, it would “continue to operate fewer rigs in the USA”, with output from the US 17,000bpd lower as a result.