ANADARKO SEEKS TO AUCTION LEASEHOLD IN FOUR PARISHES

Although this has been common knowledge among some industry members, I have not seen a GHS discussion on the subject.  The industry buzz I heard was that APC was seeking to sell everything east of Vernon Parish.  I do not know if that is an accurate characterization.  The online auction handling the acreage lists the parishes as Avoyelles, West Feliciana, Pointe Coupee and St. Landry.  I didn't click on the link for the actual details as I didn't wish to be constrained by the requirements to get those details.  Members with an interest may choose to follow this further. Link to Oil & Gas Clearinghouse follows:

http://www.ogclearinghouse.com/

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1kw6x71km1v37Permalink Reply by 1kw6x71km1v37 on May 1, 2013 at 14:37

APC continues to have some success in the chalk in Vernon perhaps attributable to the use of slotted horizontal liners. The company appears to be sitting on it's rights to formations above and below the Austin Chalk held by production from wells drilled in and around the Masters Creek Field in the late 90's. If that is indeed the case, one of these days they could go back in there and make hay. Back in that day, CHK was even positioning the chalk as it's "Tuscaloosa Marine Shale prospect'. It was all about drilling and holding acreage until the stars aligned themselves. It's unfortunate that the price bust in 1999 for both condensate and natural gas precluded further drilling of the play.

Permalink Reply by Joe Aldridge on May 1, 2013 at 15:15

Skip,

Thanks for posting this. I had not heard of this until now. I'm just not in that loop. I had thought for sometime that APC was finished in this area.

It appears to me that the wells drilled that are gas rich (Vernon Parish) require no special completion practices while on the other hand the wells drilled in the oil rich portion (Avoyelles and Pointe Coupee) do need acidization and a gravel/sand pack or a "slick water" treatment. Let's hope that whoever bids on this property has the expertise to drill, stimulate and produce it. The AC in these two areas could be a bonanza for whoever cracks the completion code.

Permalink Reply by Skip Peel - Mineral Consultant on May 1, 2013 at 15:22

You're welcome, Joe.  It will be interesting to see if there are any bidders.  When acreage ends up in these online auctions it is usually a last resort.  Any idea of the term remaining on leases in these parishes?  Are there extension options that could be exercised?

Permalink Reply by John Matherne on May 2, 2013 at 3:20

Mine is up at the end of 2013 in PC with an extension option for year 4 and 5.

Permalink Reply by Joe Aldridge on May 1, 2013 at 15:55

Skip,

I tried to reply but GHS would not take it.

I'm somewhat familiar with the leases East of the River. The State leased the land under the River a year ago. So it would be due a rental payment shortly. The land in East and West Feliciana was leased in early 2011, if I remember correctly. So they would probably be 3 year paid up leases with a 2 year option. I Think the going rate at that time was $300 per acre. I can check with a couple of people with land in that area and see when they leased and what the bonus was. If this is wrong I'll correct it in the next day or so. The area to the West I don't know. Chip or someone in that area would have to tell us when and how much.

Permalink Reply by John Matherne on May 2, 2013 at 3:19

This is not the big publicly traded Anadarko but one of its side company that is a LTD.

Permalink Reply by Joe Aldridge on May 2, 2013 at 4:55

John,

Anadarko is Anadarko. This is Anadarko that is selling these leases.

Permalink Reply by John Matherne on May 2, 2013 at 5:29

There has been no public reporting of AC activities.

Permalink Reply by Joe Aldridge on May 2, 2013 at 7:29

Very, very TRUE. Nothing appears on their site or in PR to the market about their Austin Chalk activities.  - APC and Pryme have screwed up the play and the trend and I don't think either are proud of it. So its time to shuck it and move on. I just hope someone that knows what they are doing picks it up. I question whether that happens at this time after they have made so many mistakes.

Permalink Reply by adubu on May 2, 2013 at 11:26

typical Austin Chalk every where like the 1980s

Permalink Reply by Joe Aldridge on May 2, 2013 at 11:42

So I can't be critical of a company that has killed the play and trend. WOW...........

Permalink Reply by Joe Aldridge on May 2, 2013 at 18:33

Jay,

Yes, I have a problem with an arrogant bunch that comes in and does not do their homework and screws up the trend and play. They as a company and You as a geologist should know that the Austin Chalk is an open formation with natural fractures. You cannot build "wall cake" on fissures. The mud will infiltrate the formation and cannot be cleared. They came in with the idea that the longer they drilled a lateral the better the well would produce. That is simply not correct. The longer the lateral the more mud you will loose to the formation. To top that off they and Pryme have not done any type of stimulation on any of the wells that they have drilled in Central Louisiana. On the other hand Anadarko has done acid stimulation and a "slick water" treatment on that "super well" in East Texas. Why the difference in Protocol? I simply do not understand. And I don't understand you defense of them and their drilling methods. 

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