Replies to This Discussion

Permalink Reply by Robert Boulet on July 5, 2016 at 12:43

Thanks I think FCX will have to piece meal their sale oil and gas assets including the deep gas Madden assets and ILTC ultra deep gas well in St. Martin parish which has established about 14 months of production history with monthly production rates up to 1,500,000 Mcf but no liquids.

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Permalink Reply by Mark on July 6, 2016 at 2:39

The non-op Haynesville buyer will have to put up with Chesapeake expense bs as well. When Chesapeake took over some of my wells, the monthly JIB went from 1 page to 4 pages overnight. I would love to reverse the whip on those SOB's and give them some of their own medicine one day.

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Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2016 at 2:42

Here is a prescription to take for your CHK headache, Mark.

http://www.gohaynesvilleshale.com/louisiana-mineral-owner-royalty-u...

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Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2016 at 4:54

Jay or Robert~

Got S/Ns or names for those wells.  I don't see them in a search of wells in St. Martin.

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Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2016 at 5:14

Thanks.  Beyond the extreme pressure, the spud to comp time is incredible (9/19/12 to 12/23/14) and the cost, even more so, $358,691,468.00!!!!!  No wonder FCX is so deeply in debt.

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Permalink Reply by Skip Peel - Mineral Consultant on July 6, 2016 at 8:43

How far beyond the norm for this type of deep well is $358M?  I remember when J-W was the laughingstock of the early Haynesville horizontal play when they spent $22M+ on one of their first wells.

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Permalink Reply by Robert Boulet on July 6, 2016 at 9:02

I think FCX has made a lot of progress if you consider that they were able to bring in CVX as the operator of the 1st onshore ultra-deep (ILTC) well at Lineham Creek in Cameron Parish.  Ultimately CVX decided not to try a completion attempt after spudding well on 12/31/2011 & P&A well on 1/26/2016.  FCX then condensed that time frame considerably and made a successful completion below 29,000 ft. in St. Martin Parish.  So I think the cost of the St. Martin Parish well (Highlander) was quite a bit less than what CVX and partners (FCX & EXXI) spent on Lineham Creek.

Permalink Reply by kittycatmama on July 6, 2016 at 15:47

That guy is a legend in the oil and gas field. We were heavily invested in FCX  a few years back. Got out of the investment when oil went south and actually didn't lose any money. I grew up in the oil and gas industry as my dad was in it and had been a Wildcatter in his younger days in Texas. Jim Bob is the epitome of that Wildcatter. Gotta admire the guy for the guts!!! Also he is such an normal guy even when he was worth a fortune. Used to go duck hunting in south La and wouldn't let anyone pick his ducks.

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Permalink Reply by Robert Boulet on July 6, 2016 at 5:15

Another interesting part of that well is that only the lower "Tuscaloosa" pay was perforated.  According to FCX pay was also logged in the upper "Wilcox" sections.  I remember listening to Jim Flores speak on an webcast about this well saying that they stopped drilling "in pay" and that another location updip had been identified.  Gross resource potential for that leaehold ( ~50,000 acres) was estimated at 3 Tcf.  However due to the collapse in prices making this emerging onshore play uneconomic , FCX has released all but the ~ 9,000 acre production unit.  Interesting story line following MMR and FCX activities in SW La.  Thanks for all the responses and GLTA.

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Permalink Reply by a on July 6, 2016 at 2:30

I received a letter from Freeport yesterday requesting my consent to assign my lease to Chesapeake in Caddo Parish. I am not sure how much Chesapeake is buying back.

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Permalink Reply by hayden on July 7, 2016 at 9:07

CHK is purchasing all of Freeports Haynesville assets back.

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Permalink Reply by Skip Peel - Mineral Consultant on July 7, 2016 at 11:26

No doubt.

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