Anyone local to the Avoyelles area hearing anything about the Eagles Ranch Well? It appears that they recently finished drilling well and should be moving frac crews on location soon.
I see that under well allowables effective date 01/01/2018, end date 6/30/2018 the allowable is now 2100 and the estimated potential is now 2240
Thanks David, Very good report.
I thought it was a good report. Now we need some land men in rapides parish.
Preston.... if you want to stay up to date with new drilling permits, you might want to visit this page: LDNR Office of Conservation - Permitted Wells By District
Example (Month to date/DEC2017):
According to the LDNR Office of Conservation, it's updated at the moment a new permit is issued (same day). Hope this helps.
Yes, that search is a good way to track permits. I use this one, it will get the job done also.
Interesting presentation by PetroQuest and the Austin Chalk in Louisiana: Petroquest Presentation (PDF)
Several large-cap companies with Austin Chalk experience in Texas have established leasehold positions in the
Louisiana Austin Chalk
▪ Goal is to replicate the recent Texas Austin Chalk results in Louisiana
▪ Over 300,000 acres have been leased with additional aggressive leasing activity ongoing in 5-6 Louisiana parishes
It says in this presentation that they might sell some of their leased acreage for 2000 per acre. I wonder if that will increase the lease price for people who have not yet been leased. Very interesting. So at this point PetroQuest and eog are leading the pack.
Curious to know if the $2,000/acre is what speculators are getting at the end of the selling cycle, with landowners getting considerably less at the outset.
Regarding "Hundreds of control points in the area from vintage unfracked Austin Chalk/Tuscaloosa wells."..... curious to know if old Plugged and Abandoned Tuscaloosa wells drilled years ago have any intrinsic value to these guys. Do today's O&G people see value in what the old timers did in the pre-frack days? Inquiring minds....
Old Scout, I doubt it. Although no one outside the company is likely to know the dollar return, a speculator is looking to their royalty interest for a meaningful profit. I suspect that they hope the dollar amount they get for assigning their leases covers their per acre costs and provides a modest profit. Their real investment is the difference between the royalty they gave you and the royalty they think they can get from the company that will drill the wells. Speculation is just that. I am personally aware of some speculative leasing efforts that were a total flop. A 100% loss in that no operating company would acquire the leases. Even when a speculator is able to assign their leases, the wells don't always get drilled or, if drilled, don't turn out to be economic. Speculators know this and count on doing as many deals as possible because some will turn out to be profitable and some may turn out to be home runs. The more of your royalty they can get, the better their profit when economic wells are drilled.
While Skip and Jay are looking at this, allow me demonstrate my ignorance. First, Is the amount of natural gas in the Austin Chalk valuable enough at current prices to warrant a gathering system? Second, how are the costs of refining such products as propane, butane, benzine, etc., addressed in a lease with a speculator? I thank you in advance for a reply.