Nissa Darbonne, executive editor-at-large, Hart Energy: Hi, thank you for joining us. I'm Nissa Darbonne, executive editor-at-large for Hart Energy. I'm visiting with Carl Isaac. Carl is president and CEO of Sabine Oil & Gas, a major Haynesville producer, entirely focused on the Texas side.
Carl, first thank you for joining us and you just presented at DUG Gas+ here in Shreveport. Among the points that you made in your presentation was that Sabine is built and continues to operate for the long game -- that you're obviously .. not been built to exit, but you could be a buyer. Is that accurate?
Carl Isaac, Sabine CEO: I think anything's possible, but we're absolutely built for the long term. Our owners bought us in 2019 and made it very clear that they were looking out to 2050. So there's a lot of time that passes between now and 2050. So I would say anything is possible.
ND: Meanwhile, in terms of the history of Sabine, except for kind of your original formation companies, your asset base, you've built by bolting-on property, and I understand that you've now accumulated 65,000, is it additional acres? Is that net or gross?
CI: It is around 50,000 each net in the Haynesville and the Cotton Valley play. So, 100,000 total.
ND: Okay. And you've just done this somewhat quietly, just blocking and tackling.
CI: Just kind of normal course, blocking and tackling.
ND: Here and there. The Chevron property is in your neighborhood. The Chevron property being near DeBerry [Texas], being kind of northeast of Carthage, if you will. It's a really relatively undeveloped property that rumor has it Chevron may put on the market if it can get its deal with Hess closed over Guyana. So is that Chevron property, I imagine that's very interesting to you. Would you actually step up and buy that one?
CI: Well, we've actually had the opportunity to do several deals with Chevron on a farm-out basis and those acres that we were just talking about. So I think it's going to be very interesting to see what transpires with acreage block that you're talking about right now.
ND: And how are you all handling these low natgas prices?
CI: It's pretty simple. We're not selling gas that's not hedged, so we're curtailed about 75 million [cubic feet] a day right now. We were curtailed on average for 2023 about 50 million a day. And we say we don't need practice. We need to make a return.
ND: Super. Thank you so much, Carl. Appreciate it.
CI: Thank you for having me.
ND: And thank you for joining us. For more information, find it right here at hartenergy.com.
Recommended Reading
Chesapeake Enters into Long-term LNG Offtake Agreement
2024-02-13 - Chesapeake Energy entered into a long-term liquefaction offtake sale and purchase agreement with Delfin LNG and Gunvor Group for a 20-year period.
Babcock & Wilcox to Convert Coal Plant to NatGas
2024-03-18 - B&W will convert the plant’s two coal-fired boilers to natural gas by designing and installing burners, air systems, fans and other equipment.
NextDecade Targets Second Half of 2024 for Phase 2 FID at Rio Grande LNG
2024-03-13 - NextDecade updated its progress on Phase 1 of the Rio Grande LNG facility and said it is targeting a final investment decision on two additional trains in the second half of 2024.
Woodside’s Pluto Train 2 Nears 2026 Start Up with Modules Delivery
2024-02-21 - First 3 of 51 modules have arrived on site in Western Australia for the onshore LNG project that will receive gas from the offshore Scarborough project.
ARC Resources Adds Ex-Chevron Gas Chief to Board, Tallies Divestments
2024-02-11 - Montney Shale producer ARC Resources aims to sign up to 25% of its 1.38 Bcf/d of gas output to long-term LNG contracts for higher-priced sales overseas.