Replies to This Discussion

Permalink Reply by Rock Man on May 22, 2013 at 16:55

Don't expect to see anything quickly just because bids deadlne has arrived. Still lots of process and work to do as purchase and sales agreements (if there is a clear high and acceptable bidder) or the marketing firm working with the high bidders (whose bids may be less than what is desired0 to work with the top 2-3 bidders to get to a "final" bid.

I have seen processes like these take months - Chesapeake is already several months past their bid deadline for ther S Tx Eagle Ford sales package with nothing yet announced.

Permalink Reply by John Matherne on May 23, 2013 at 1:27

I will entertain a new lease starting Jan. 2014 in Pointe Coupee.

Permalink Reply by John M Santamaria on May 24, 2013 at 10:41

I looked just for the "heck of it" today at the website for the Anadarko sale; the oil clearinghouse, and noticed the Anadarko prospectous was not listed there.  Does anyone think this means anything in the overall scheme of things?  Maybe a deal was made?

Permalink Reply by Rock Man on May 24, 2013 at 10:43

May mean that O&G Clearinghouse is in negotiations with the "finalists".

Permalink Reply by John M Santamaria on May 24, 2013 at 11:52

I hope so!

Permalink Reply by Two Dogs, Pirate on May 24, 2013 at 15:24

If someone bids they better do a good due diligence search before paying the bill. I found about 75 acres that their leasing agent bought from the landowners in Rapides Parish that the State of Louisiana owned the minerals.

Permalink Reply by William C. Morrison on May 25, 2013 at 2:24

As Yogi Berra said, "It ain't over until its over."  Don't look of any new leases for a while, things will be tainted by the Anadarko sale.  Even it they do get a successful sale, it does not mean any new leases as Anadarko is selling their leases.

Permalink Reply by Joe Aldridge on May 25, 2013 at 10:24

Chip,

I agree. It will probably be 5 to 10 years, if then. Just don't see anything anywhere in the pipeline for Austin Chalk in this area. Just very discouraging that people that should know how to don't and can't. It does not look good for CHK hiring someone from APC to run their company.

Permalink Reply by William C. Morrison on May 26, 2013 at 3:40

Yep.  We seem to go through a 10 or so year cycle of leasing.  Our current lease was for three years with a two years of annual renewal.  And as it has occurred in the past, no one renews the lease, so it languishes.  Then there is a spurt in mineral prices, I guessing this time it will take an increase in the price of natural gas to do it.  Saw a while back someone was moving a methanol plant from S. America to Louisiana, to be sited some where around Lutcher or Gramacy.  The only thing that will do is make model airplane fuel less expensive or keep it from going up to much.

That is why I said a while back to take the lease offer, it  may be the only money you make for a while.  I can recall during the big boom in the mid 80's there was an owner that would not take a $400 per acre lease.  Two weeks after turning it down, the bottom fell out and no one want to lease anymore.  So that fool lost a bundle of money for his stubbornness.  My sister-in-law, managed to make a ton of money out of a lease on Brunswick - She got something on the order of $500 an acre while my family next door got only $25 an acre.  But then my family sold an 1/8th of their royalities for a bunch and a year later the well sanded over (frankly I think it was poorly drilled, so much so it was not worth working over).  We are fairly sure deep gas is there, once was in production and every lease we get is in two parts, one for Tucscaloosa Trend and the other for Austin Chalk. 

There is still a sweetening plant operating in the area, in the Moore-Sams Field, located on the back of Sugarland Plantation (Beaud family) and production companies would not leave a plant in place unless it has future potential.  Yes, there are still some active wells in the area and that is yet another reason the sweetening plant is still there.  Cotton Valley has not even been mentioned in the area.

And on our side of the Mississippi it is Austin Chalk, yet across the river in West Feliciana, it is all Tuscaloosa Marine Shale.  Yes, the river is wide but it ain't that wide, and me thinks the geology does that change that fast.

Permalink Reply by Joe Aldridge on May 26, 2013 at 5:03

Chip,

The Cotton Valley is deep here - 22 to 24,000 ft. So I don't think they will be drilling that anytime soon and it would probably be gas anyway. The TMS is also deep - 16,500 or so. The interesting thing is since we are below the shelf and there is Eagle Ford above the upper TUSC. It is at about 15,900. There seems to be a problem drilling laterals at that depth. Or it might be that they anticipate those formations containing gas rather than oil because of the depth and with the price of gas at $4.00 no one is interested. 

Permalink Reply by William C. Morrison on May 26, 2013 at 7:47

I agree about the gas  It ain't going anywhere soon. My guess is my heirs may do okay, but not me personally.  Since the place as we call it, is a corporation, it will be there for years to come.  Perhaps the pressure to sell will occur but not likely, we may just lease the land to some chemical company needing river access, water, etc.  I do not think the family will ever sell now since no one person has control of a majority of the stock and probably never will.

I know in the southern area of Pointe Coupee they drilled some wells up to 24,000 feet back in the 10980s.  They were all dry holes.

Permalink Reply by Rock Man on May 26, 2013 at 9:03

Just have to keep in mind that some areas will just not work as to O&G production regardless of prices and technology. If the volumes aren't there in the subsurface, you can't get them out.

Not saying that this is the case for the AC in this area, but you never know.

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