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Permalink Reply by Spring Branch,mineral owner on January 23, 2010 at 6:05

I like it, Les. Looks good. Regarding the Encana/Shell arrangement.......is it your opinion that Shell can operate a well in a unit applied for by Encana and vice versa? I'm trying to figure out how interchangeable they are with each other. It would seem to me that Encana has many more rigs working than Shell, and therefore can drill a lot more units than Shell. Or am I looking at it wrong?

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Permalink Reply by Skip Peel - Mineral Consultant on January 23, 2010 at 7:03

Thanks, Les B. I am looking forward to Devon increasing their rig count this year. And drilling some LA. wells.

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Permalink Reply by Les Bamburg on January 23, 2010 at 10:33

SB, that definitely seems to be the case. It appears that EnCana & Shell made a decision a few months ago for EnCana to drill more of the wells in the southwestern portion of the play and Shell to move their focus to the shallower area in northern Red River and DeSoto Parish.

The ratio of EnCana rigs to Shell rigs is about 3 to 1 so EnCana is the more active operator by far.

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Permalink Reply by Crunchy on January 23, 2010 at 10:56

I don't know if this helps...but Shell unitized us (before the partnership) and Encana is drilling us.

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Permalink Reply by Spring Branch,mineral owner on January 24, 2010 at 0:05

Helps a lot, Crunchy.................Thanks.

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Permalink Reply by king john on January 26, 2010 at 2:42

thanks for the overview les. i would like to know your opinion as well as others on the sight...
in locations where the rig count is concentrated, would that be attributed to "good rock" or expiring leases???
kj

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Permalink Reply by Spring Branch,mineral owner on January 26, 2010 at 2:57

I'd say both .........good rock,expiring leases, and also, once pipeline infrastructure exists, it probably makes sense to drill out the area of the infrastructure.

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Permalink Reply by Les Bamburg on January 26, 2010 at 18:35

KJ, I concur with SB that DeSoto Parish is a focus because it is highly economic, leases are expiring and there is not existing shallow production in much of the area to hold acreage. I am still waiting to see if some rigs migrate into southern Red River Parish, northern Natchitoches Parish and Sabine Parish later in 2010 as those leases begin to expire.

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