Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2011 at 13:47

Ha!  Jay, I wrote the exact same words to a friend in an email response today.  LOL!

• ▶ Reply

Permalink Reply by North LA on July 19, 2011 at 12:42

Thanks for the information and links.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2011 at 14:21

Nope.  That's part of the reason for the reference to Mainland Resources.  The situation with CHK/Epsilon is similar to that of Mainland and Petrohawk in the early Haynesville Play.  Mainland had acquired the development rights to a small lease block with the intention to kick off the new company with some Hosston and Cotton Valley vertical wells.  Before they could raise the capital to do any actual development the Haynesville Shale came along and lo and behold they were "in a good spot" according to their early press releases.  Mainland's only contribution to the JV with HK was their deep drilling rights.  Petrohawk drilled the wells and Mainland was a minor Working Interest in the wells.  Mainland has never drilled one well in LA.  You wouldn't know that from their later press releases when they attempt to portray themselves as an "early mover" in the HA and by inference try to assume some credit for the successful wells drilled by HK.  Epsilon sounds a lot like Mainland.  I have read a lot of these Internet Promo Pieces and find them to be long on spin and short on salient facts.  Their purpose is to sell penny stocks.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 19, 2011 at 14:48

Exactly my point, tony.  Working Interests may have access to the science generated through drilling: logs, cores, etc.  But the operator has no reason to take their minority partners by the hand and teach them to drill a HA or BD well.

• ▶ Reply

Permalink Reply by North LA on July 20, 2011 at 2:12

"Dudley would never bid on the state leases without there being a client with deep pockets employing them"

 

Could you add some insight to this statement for those of us who are ignorant about T.S. Dudley.

 

Thanks

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on July 20, 2011 at 2:44

T.S. Dudley is not spending Dudley money. They are brokers working for a client, they are not an operator, they buy leases and do title work.

• ▶ Reply

Permalink Reply by North LA on July 20, 2011 at 3:02

I know that, but I was wondering what the "deep pockets" comment meant.  I would like to know more about T.S. Dudley.

Permalink Reply by Two Dogs, Pirate on July 20, 2011 at 3:13

This would depend on what ones definition of deep pockets would be. Dudley is one of the larger brokers that could put many boots on the ground very fast.

Permalink Reply by North LA on July 20, 2011 at 3:22

"Dudley is one of the larger brokers that could put many boots on the ground very fast."

 

I see. Thanks Two Dogs.

Permalink Reply by Oilman28 on July 20, 2011 at 2:54

Ray is correct. T. S. Dudley and Triad are strictly brokers working for what I believe are going to be large companies. I truly believe you are going to see the name Exxon connected with the Pine Belt/T.S. Dudley leasing efforts once all is said and done. It only makes sense seeing as Exxon probably has more geology on that area than any company out there because of all the wildcat wells that they drilled across the state line back in the 70's. They also have some serious servitude acreage up that way since the acquisition of XTO which gave them a great head start on land position. Time will tell on that, but companies like Brammer, Will Drill, and JW are not as second rate as some may think. They all have the capabilities and engineering abilities to drill these types of wells.

• ▶ Reply

Permalink Reply by The_Baron on July 20, 2011 at 3:19

Exxon has had thousands of fee minerals in the Brown Dense Area for decades.