Replies to This Discussion

Permalink Reply by kittycatmama on January 3, 2010 at 11:40

Jay, in your opinion, now in 2010 with the data you have, where do you call the core area?

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Permalink Reply by The_Baron on January 4, 2010 at 3:56

Must be that pesky state line fault, huh Jay?

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Permalink Reply by kittycatmama on January 4, 2010 at 16:26

thanks. Kitty

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Permalink Reply by Skip Peel - Mineral Consultant on January 3, 2010 at 15:15

Permeability, porosity, Gas In Place (GIP), thermal maturity (Ro), Total Organic Content (TOC), to name just a few. There are a number of other "possible differences".

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2010 at 14:23

WG. Admitting that the productive nature of the shale varies across the extent of the Play is a good start. It's established. For background, read the discussion topics from early 2009 in the North Caddo Parish Group. No, I do not find E&P companies to be rigid in what they are willing to pay. In fact I see a range far too wide for comfort by the same companies in the same general areas of the Play. What an operator is willing to pay in a section that they plan to drill next month is materially different from one that they do not plan to develop until a year from now. And competition always has a significant effect on offers. The fact is that those who have done their homework, or had some professional do it for them, almost always get better terms than those who are uninformed. Those with large mineral estates have relied on experienced O&G attorneys and landmen for a generation or two. Those without the ability to pay for professional assistance can use the Internet to learn the basics of managing their mineral estates and keep up with development activity in the area of their mineral tract(s). I look at leases recorded in parish clerks of court offices on a daily basis. I can count the number of favored nations clauses on one hand and have a finger and thumb left over.

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2010 at 16:00

I see some odd lease terms from time to time but they all involve large and unique mineral estates. They are not applicable to the average HS lease.

Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2010 at 17:23

I doubt that would qualify unless that landowner also owned several thousand contiguous acres. Also surface location for HS horizontals are so important that operators would build a road and pad above flood elevation in order to drill multiple wells from the same pad. If the non-hypothetical piece of land is not located in the right spot, it matters not one whit that it never floods.

Permalink Reply by The_Baron on January 5, 2010 at 4:07

Building up land for a pad is not that big of a deal.

Permalink Reply by Skip Peel - Mineral Consultant on January 5, 2010 at 4:36

WG. 1) The road does not have to be built to an elevation that impedes the movement of flood waters. Only the pad has to be at a higher elevation. 2) The surface locations of horizontal HS wells are situated on or just off of a drilling unit's north or south boundaries and the well laterals drilled in a northerly or southerly direction. Unless the tract you mention is situated similarly, it is not a potential well site.

Permalink Reply by Les Bamburg on January 9, 2010 at 18:07

WG, well horizontal laterals are primarily drilled in a north-south direction witth perforated lengths up to ~ 4620'. A few laterals have been drilled in an east-west direction. Laterals must be drilled parallel to section lines in order to maximize their length.

Permalink Reply by Les Bamburg on January 4, 2010 at 18:47

Jay, Chesapeake stated in today's conference call that the majority of the 100,000 acres for sale is located in East Texas. One of the drivers was their inability to assemble enough acreage to gain control in those areas and this would make it difficult to HBP before leases began expiring.

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Permalink Reply by Timber Gal on January 8, 2010 at 9:05

I just found this article which outlines Chesapeake's sale of acreage in Texas, but there is no mention of selling off in Louisiana. Jay I'd asked you to email me your information stating they are selling off in Louisiana, but have not yet heard back from you. Could you please email it to me, as you mentioned you would do to other forum writers? Thanks.

http://www.businessweek.com/news/2010-01-04/chesapeake-plains-may-s...

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