Replies to This Discussion

Permalink Reply by reallyoldguy on August 31, 2010 at 17:19

D. Burrows: I was out there this weekend, as well. The Atkinson Unit has not been fracked yet. Im not sure about the Trainer Trust, although I dont think its been fracked either. The rig was just moved from the Crane 2H, and the Crane 1-H had an IP of 31.175 Mmcfd!!!
Someone else will have to tell you about the ACLCO Unit...

Permalink Reply by nick waters on September 2, 2010 at 7:53

ROL.
Was the rig still up at Stanton 1H? Looks like EOG is using the same pad.
Nick

Permalink Reply by reallyoldguy on September 2, 2010 at 11:02

Nick: Are you referring to the Sutton 1-H? If so, yes it was.

Permalink Reply by youngbird on September 9, 2010 at 6:36

I have mineral rights in this area too. If EOG is selling all of their natural gas interests as they recently announced including their interests in the Haynesville shale what will happen with the wells in development, like the Atkinson which you say haven't been fracked or the ACLCO Unit 33153? How will this effect our lease and/or mineral rights values?

Permalink Reply by jffree1 on September 9, 2010 at 7:19

EOG is not selling all of their natural gas interests. They are selling a select number of acres that they prefer not to JV on. They have a huge investment in the Haynesville and are not going anywhere. The wells in development will be completed in their own time but if I were a mineral owner in one of those units, where IP is now expected to be pretty large, I would be hoping that they take their time and that the price of NG improves before my gas goes to sales.

Permalink Reply by youngbird on September 9, 2010 at 8:23

I believe you're wrong about that. Accoding to what I read in the news on line they are selling all of their gulf gas interests and "going in a different direction". They also stated that they would prefer to sell their interests as one large entity but would entertain selling off smaller protions.

Permalink Reply by reallyoldguy on September 9, 2010 at 8:29

If Im not mistaken, EOG is selling appx. 180,000 total acres. 15, 000 of which are in the Haynesville Play. It would be highly unlikely that EOG would sell any of their acreage that hold at least 2 of the largest wells in the Play. The "different direction" that you are referring to is oil.

Permalink Reply by jffree1 on September 9, 2010 at 12:37

You can believe whatever you want to but I think you have read articles from some of the repeater blogs who are trying to hype (for whatever reason) the fact that EOG is selling acreage. These companies buy, sell, lease and trade acreage all the time and have done so as long as there have been oil and gas producers. Here is an excerpt from EOGs August press release:

As EOG continues to pursue its extensive organic high rate-of-return horizontal crude oil and liquids rich investment opportunities, it is making incremental capital expenditures for crude oil related facilities and infrastructure. To maximize long-term project economics on crude oil developments such as the Eagle Ford, EOG is raising its 2010 capital expenditure program by $500 million from previous estimates. The increase will be offset by a greater amount of acreage sales than previously anticipated.

"We plan to sell certain non-core North American producing natural gas assets, as well as acreage in both natural gas and liquids plays, to execute the drilling and development of our suite of outstanding horizontal oil drilling opportunities. The cash generated will partially fund our capex program in 2010 and 2011," Mr. Papa said. "In addition, we are focused on maintaining a strong balance sheet, while on track to deliver 13 percent total company organic production growth this year."

http://investor.shareholder.com/eogresources/releasedetail.cfm?Rele...

Permalink Reply by youngbird on September 9, 2010 at 8:32

Google EOG selling natural gas interests and you get a slew of recent articles about this.
EOG has announced it intends to sell 180,000 acres of horizontal shale gas properties in the Marcellus, Haynesville and Eagle Ford formations. They are getting out of gas to concentrate on oil development.

Permalink Reply by ledlights on September 9, 2010 at 18:34

"getting out of gas" - I strongly doubt that. They are getting out of the Gulf of Mexico. They are going more toward oil - better return on average right now. But "getting out of gas"? - show me one article that states or provides any credible evidence of that. Do you have any idea how much gas property EOG will still hold? Do you think that EOG does not want to drill more gas wells on the properties that they already HBP with excellent gas wells? As jffree1 has already mentioned, these companies are always in the process of upgrading or raising funds to concentrate on what they calculate to be better prospects. I can see them backing off gas to wait for better prices, but getting out?

Permalink Reply by ledlights on September 9, 2010 at 18:46

From article about the sales:

Mark G. Papa, EOG's chairman and chief executive, said the company had spent $1.7 billion in recent years leasing the drilling rights in several prime shale-gas formations and had accumulated more acreage than it could manage.

"So we're going to monetize a bit of this acreage" by selling those leases, he said. He said the proceeds would be used to reduce debt.

After several years of frenzied leasing activity, Marcellus operators are consolidating their holdings - accumulating contiguous acreage, selling or swapping some leases with other operators, or forming partnerships, sometimes with big international investors.

EOG had considered forming a joint venture to operate its excess acreage, Papa said, "but instead decided on an outright sale because it's cleaner and less complicated."

Permalink Reply by Spring Branch,mineral owner on September 15, 2010 at 15:19

Remember that a "little" knowlege is dangerous, youngbird. Your comments on EOG's intentions regarding natural gas are incorrect, IMHO.

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