Replies to This Discussion

Permalink Reply by dbob on September 6, 2013 at 14:45

Freddie

What you want done will depend on the size of your holdings.  

If you hold a sizable chunk, you could consider having a consulting geologist evaluate it, based on well logs from nearby properties or previous seismic surveys in the area.  

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Permalink Reply by Sunny Chaw on September 7, 2013 at 1:55

Your disclosure of new found riches has left a wonderful bulls eye on your person. Welcome to GHS! Help will be forthcoming.

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Permalink Reply by David on September 6, 2013 at 16:10

Do you know the section, township and range of the property?

If you know these that will help people answer. You can enter that information, if you have it, at http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_sectwnrng1

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Permalink Reply by Bobi Carr ("parker") on September 7, 2013 at 4:57

Freddie,

  If I remember correctly, your property is North of I-20 and is in the 5 - 10 acre range.  If this is correct (trying to remember what you've posted in the past), spending any money on having it "evaluated" probably is just a waste of money.

  Skip and Jay have probably told you that really the only thing you can do is wait.

  Presently, the shale in that area isn't productive enough to warrant drilling at this time.

  Encana is in the process of drilling 2 units with one long lateral.  If this is successful, other companies may follow suit.  This would cause the production cost to be lower.  In a recent Encana presentation they state that they can lower cost to $2.50 per mmcf.

  The main problem lies in the fact that there has been a glut for so long. Most companies don't want to produce natural gas to the extent that they exacerbate the problem.  No one wants to be a victim of super low prices again.  Wouldn't you rather that they wait and drill your property when prices have recovered?

  Hopefully the prices will improve as demand is added.

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Permalink Reply by Bobi Carr ("parker") on September 7, 2013 at 5:05

If your property is farther North near 20 - 22N,  You might have some luck with another formation.

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Permalink Reply by Bobi Carr ("parker") on September 7, 2013 at 14:49

One other thought, if you spend money to find out what you have, what can you do about it?  Unless you have several million dollars to drill a well yourself, I think the only thing you can do is wait.  I would be glad you don't presently have a well at these low prices.

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Permalink Reply by GoshDarn on September 7, 2013 at 15:11

Bobi:

That's solid analysis.  Good advice (in general).  I would agree per what little I know about the location at this time.

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Permalink Reply by JAMES SMITH on September 11, 2013 at 6:02

Do you know where the units are that Encana is drilling the long lateral? Thanks

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Permalink Reply by Skip Peel - Mineral Consultant on September 11, 2013 at 8:13

Predominately in Red River Parish.  24 of the last 25 wells ECA has drilled or permitted.

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