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Permalink Reply by The_Baron on December 1, 2008 at 7:50

This is the $64000 question. I would imagine its a little early to see if any companies are in the wings. Without increased drilling it wil be hard for any of the majors to maintain all of their leases. With tighter credit and lower gas prices it will be hard to increase the amont of drilling.

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Permalink Reply by The_Baron on December 1, 2008 at 8:16

Depending on the leases, especially if there are no vert. pughs, I suppose they could farm out areas they can't get to. For example, they could farm out the wilcox or cotton valley rights to hold the leases.

With verticle pughs, it would be more complicated as the HA would have to be produced to hold those depths. If the leases were bought cheap enough, and lease bonuses remain high, it could warrant some standard verticle HA wells to hold the leases.

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Permalink Reply by The_Baron on December 1, 2008 at 8:31

I am not a geologist.

That being said, if other shale plays are any indication, there will be sweet spots. There will be also areas that are not so good. I attended a recent presentation by HK that suggested that not all of the shale will be viable. The real question is what are the boundries of the productive areas? I am under the impression is that more drilling is required. The shale is a thick deposit over a large area, but to be productive needs to have the porosity needed to hold the gas. There are several wells north of shreveport being drilled and some planned in north bossier, it will be interesting to see those results.

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