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Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2014 at 12:13

Vanguard to acquire Cotton Valley, East Haynesville acreage

HOUSTON, Aug. 4 ogj.com

Vanguard Natural Resources LLC, Houston, has entered into a definitive agreement to acquire natural gas, natural gas liquids, and oil assets in North Louisiana and East Texas from Dallas-based Hunt Oil Co. for $278 million, effective June 1.

The transaction, expected to close on or before Oct. 1, encompasses 23,000 net acres in the Cotton Valley and East Haynesville currently producing 17.5 MMcfd of natural gas equivalent, of which 67% is gas and 33% is oil and NGLs.

Reserve life for the assets is estimated at 23 years based on proved reserves of 150 bcfe.

“Along with an established base of producing assets, this acquisition features an inventory of behind-pipe and low-risk vertical drilling projects that we will begin to develop in 2015,” commented Scott W. Smith, Vanguard president and chief executive officer.

Vanguard will receive working interest in more than 290 producing wells and 78 proved undeveloped vertical drilling locations.

“In addition, based on our initial evaluation work, we believe there is the potential for meaningful horizontal drilling opportunities across some of the operated assets,” Smith said.

Vanguard’s assets consist primarily of producing and nonproducing oil and gas reserves in the Arkoma basin in Arkansas and Oklahoma (OGJ Online, June 5, 2012); the Gulf Coast basin in Texas and Mississippi; the Permian basin in West Texas and New Mexico; the Piceance basin in Colorado; the Williston basin in North Dakota and Montana; the Big Horn basin in Wyoming and Montana; and the Green River, Powder River, and Wind River basins in Wyoming (OGJ Online, Nov. 1, 2012).

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Permalink Reply by Frank on August 16, 2014 at 13:19

Is there a link to a map for this?

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Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2014 at 13:30

No.  There are a number of oil companies with "Hunt" in the name.  If the article is using the correct one, Hunt Oil Co., then I suspect that the assets mentioned are in the East Haynesville and Colquitt fields in Claiborne Parish and the Cotton Valley Field in Webster. 

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Permalink Reply by Robert E. Anderson on August 23, 2014 at 0:12

What does this mean to the average Royalty Owner. I have about  1000 acres  in Haynesville, (San Augustine, TX) area and have just entered to play on this field. Thank you for any info you can provide.

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Permalink Reply by Skip Peel - Mineral Consultant on August 23, 2014 at 1:54

Robert, there is too little information to know what this may mean for San Augustine, TX.  This transaction represents a growing trend of companies looking for opportunities to drill "wet" gas wells.  So the first important take away is, "67% is gas and 33% is oil and NGLs".  Wells with 33% oil or condensate with NGLs (natural gas liquids) are profitable to drill when "dry" gas wells may not.  The second is, "potential for meaningful horizontal drilling".  Where the Cotton Valley is "tight" (low permeability) horizontal wells may be the most economic means to produce that "wet" gas. 

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Permalink Reply by Robert E. Anderson on August 25, 2014 at 4:42

Thanks for the information.

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Permalink Reply by W. Marshall Shaw on August 28, 2014 at 4:58

We have had insignificant connections with the Hunt and Bunker families for nearly a century now. Minerals in Claiborne and Webster parishes as well as in south Arkansas. There was a trust fund set up for one of HL's sons, a halfwit who could scamper up and down the ladders in the clerks' offices retrieving records. It was alleged that he was the richest man in south central USA. Hassey Hunt? What became of his trust fund?

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