Things aren't all Rosy for Shell in the shale patch

http://www.marketwatch.com/story/shell-profit-falls-on-n-america-sh...

U.K.-listed oil-and-gas giant Royal Dutch Shell PLC Thursday posted a 60% fall in profit for the second quarter, largely due to a charge of more than $2 billion on the value of its liquids-rich shale assets in North America.

Shell warned that its North American exploration and production division was likely to remain at a loss during at least the second half of the year, and announced a strategic review of its North American portfolio with a view to selling some assets.

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Permalink Reply by paleface on August 1, 2013 at 6:52am

Should that read a change rather than charge?

Permalink Reply by Gringo on August 1, 2013 at 7:27am
It was not for LRS. A large part of that was the East purchase. It is " mark to market" write down.
Permalink Reply by Tim Tarr on August 2, 2013 at 2:10am

We are now entering a period of focusing our portfolio down to our best liquids plays,whilst maintaining key dry gas assets for longer term integration value. We have some 9 operational theatres in North America. This should reduce to about half that number over time, as we focus down this portfolio while growing our business. We expect to see a step up in asset sales for North America resources plays in the next 18 months.

We’ve reduced spending overall in this theme, with less activity on dry gas and more in liquids rich plays. There may be some further small acreage build around our core areas to achieve our desired scale, but the major acreage deals are behind us now.

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Permalink Reply by Trapper on August 1, 2013 at 9:53am

I wouldn't get too excited too soon. Shell still seems to be in the exploratory stages here in W.PA. Some wells producing here but not many. They are on a mission to lease up ROW in many twps. in Lawrence County and are still recording the occasional lease. Mid July saw another assignment of leaseholds to them from Hilcorp. The Cracker Plant in Monaca is still a possibility , they have another extension from Horsehead. I'm thinking they like what they have found here thus far and infrastructure may be the biggest obstacle to overcome. Once they hook up and start selling product , I'll bet the numbers improve greatly.

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