Replies to This Discussion

Permalink Reply by jffree1 on September 26, 2008 at 4:58

I know some who signed at that price, also. They took a 30 day draft early in Sept. It could be mid to late Oct. before it pays. Those are 30 banking days.

Permalink Reply by Rebel Roy on September 29, 2008 at 22:00

When I spoke to someone at Devon on Sept 22 he said people were lined up outside signing leases. Said he could get to me the next week, but I had to fly overseas that day. Has anyone heard of a lot of lease signings??

Permalink Reply by jffree1 on September 30, 2008 at 6:57

Roy, I was over there on Friday and there was not anyone lined up at 11:30. They are still leasing in their areas of interest (Rosevine, Gravel Hill, Milam, out to the lake, up to Shelby line, over to SA line). They said our tract near Rebel Ridge was in their buy area but that the one we have at Camp Springs is not...go figure. It is 3 m. ESE of Hemphill. They are still not taking anything below Hwy 83 east of Hemphill.
I heard that they are still signing leases at 6K but are "thinking about" lowering offers back to 5K. I think they will have a hard time doing that...just my opinion of course.

Permalink Reply by Sandstone on September 30, 2008 at 7:44

No. In fact I heard yesterday there is still a lot of unleased acres in the area and the landowners are waiting for the competition to come in. I still think waiting will pay off.

Permalink Reply by Rebel Roy on September 30, 2008 at 12:12

I hope waiting pays off. I would have signed at 6K before I left, but as I said he replied it would be the next week. I will keep in touch on here and see how it is when I get back home. Sure appreciate all the info, especially this far from home.

Permalink Reply by Sandstone on September 30, 2008 at 12:21

I will be talking to some folks "more in the know" in a few days and will post if I find out anything new. I could be very wrong but I think the current financial situation will help the natural gas industry with investors wanting to invest in something other than the stock market and houses.

Permalink Reply by jffree1 on October 3, 2008 at 6:17

I think you may be right but I kinda think we may have to wait out the election also before things start to brighten a bit.

Permalink Reply by Rebel Roy on October 5, 2008 at 22:05

OK, wake up sabine county. New week. Any news to pass on. I am starvin for news here in Indonesia.

Permalink Reply by Sandstone on October 6, 2008 at 11:11

Hold on to the thought -"no news is good news!"

By the way, how did your 401k do today?

Permalink Reply by Sandstone on October 7, 2008 at 4:22

I am hoping when well results are released there will be new companies entering the game.

Permalink Reply by jffree1 on October 7, 2008 at 17:33

Newcomer, I have heard the same thing...that some are working on finishing up well units and are concentrating on those. But, I have also heard that leasing runs in cycles and that once these first units are a done deal then they will go active again with offers. There is so much going on right now to keep leasing in slow mo, not the least of which is the economy (no big deal, tho, we'll just have the fed print some more money if we don't have enough). Then there is the lack of demand for NG. We sort of over ran the market ...hence the lower price for NG. I don't think moving the gas to market is going to be as big a problem as creating a bigger market (like CNG cars) to move the gas to.
I don't think we need to fear that this play is at an end. They know they can slow down and produce the gas at a pace that the market can stay ahead of and they will support the current price by doing that. Too much gas in storage means lower prices.
And there is not enough competition in our area yet because of the lack of well data. It is going to take some good test data before we can expect more players in Sabine/SA. When the counties north of us get leased up they will come...
Sandstone is right. We all got excited and now we have to settle down and wait this out. It ain't nearly over yet. Devon didn't come down here just to do one or two test wells and then leave. That would indicate that they don't expect good test data or that they are just trying to find the boundary (which probably is fact) but don't intend to produce what they find???? They don't make money by not producing. We are just on the fringes at the moment.

Permalink Reply by jffree1 on October 9, 2008 at 8:40

Update on Devon:

I heard this morning that they have stopped making offers for the short term (next 2 weeks is what they are saying). I'm sure it is due to the credit/lending crisis. They say they are going to honor any drafts which have not funded yet.

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