FYI.....my Dec. 10,.2014 option was not exercised.....acreage in Union County, Ark, This is a total of
about 3000 acres that were dropped. Any news about Union Parish activity. Has low price of oil and SWE plans to purchase gas rights of Chesapeake changed /affected exploration plans ???
Thanks Skip, I am not spending the royalty checks until I see them. SWN did exercise their option on renewal back in early 2015 so we are locked in with them for a while longer.
You're welcome, Ben. The LSBD will be a tough nut to crack. It's been proven non-economic as an "unconventional play" but it has some potential for economic production in some limited "conventional" reservoir areas. I think SWN has generally identified those areas through 3D seismic and their own well control. They may choose to renew the leases covering that area (or those areas) or they may choose to drill additional exploration wells (vertical completions) which will serve to hold those leases covered in a drilling unit.
Just dropping by for my periodic visit to see if there were any updates on the Union Parish part of the LSBD.
I had seen somewhere that the break even point for SWN is $72. Recently, I have read that advances in technology may bring that down to around $50 and since today's price was approaching $51, that restores some level of optimism.
I think that SWN has given up on the LSBD. Their focus is now the Marcellus. It will likely take some other company to pick up their leasehold and resume efforts to figure out the key to the formation. It's not just the price of oil holding back interest. The technology you mention doesn't seem to work in the LSBD. The vertical wells have out performed the horizontal wells.
If you are referring to S15-22N-1W, this well is the last to be drilled and completed. There is no compelling reason to drill any additional wells at this time owing to low commodity prices. This well should hold all the leases in the unit, L SMK RA SUJ (sections 10 & 15), in force for some years to come.
ANKOR E&P HOLDINGS; MARGARET ALBRITTON WILLIAMS #1; COMP 12/18/15 - 1800 MCFD, 593 BOPD, 14/64 CHOKE, 43 GVTYK, PERFS 9862 - 10086
Yep. See that "COMP" in the reply above? It is an abbreviation for Completed. Since the well has only been producing since mid-Dec.there wouid only be two checks so far. The first for Dec. and Jan. and one for Feb. The check for March production should come about mid-May. Royalty checks are always 6 to 8 weeks behind the production month.