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Permalink Reply by Skip Peel - Mineral Consultant on July 31, 2017 at 14:50

 A line from approximately Converse (Hwy 174) due east to Spring Ridge south of Pleasant Hill to the Natchitoches Parish line would define the southern most limit of the current development activity.  Anything north of that line will see the possibility of new wells depending on the price of natural gas over the next 12 months.

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Permalink Reply by Doctor Joe on August 1, 2017 at 6:07

Let's hope Indigo eventually decides to move further south.  There are some very good wells in Sections 30 and 31 of T9 13W.

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Permalink Reply by Kurt grussendorf on August 1, 2017 at 6:51

Skip: Thanks for the info, Skip. I had a landsman look into who had the minerals rights to my tract some years ago as I purchased in 2006 before the first wave of gas drilling. The investigation was never completed although it appeared the seller may not have held them as his uncle swapped land flooded by the lake for the tract owned by International Paper. Covey has a well near me and I tried to contact them for some info in June but got no reply. Left lots of voice mails. But Indigo called 10 days later and offered the water deal. Coincidence?

Kurt

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Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2017 at 8:13

Kurt, the minerals under lands flooded by the lake are not subject to prescription so they are owned indefinitely until sold or conveyed in some other manner.

There are only 25 HA wells producing from 9N-13W which is a very small number compared to townships further north.  The wells that I have reviewed in 9N-13W do not appear to be economic, in other words they never paid out.  There is a fair amount of variation in apparent rock quality across the entire township and new well designs and NG prices stable above $3 may make some wells there economic in the future.  My comment regarding the southern extent of apparent current develop interest is strictly based on applications for alternate unit wells that I review daily.

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Permalink Reply by Martin on August 1, 2017 at 7:35

Doctor J:

   Many of the sections of T9 13W have good NG wells.

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Permalink Reply by SL on August 1, 2017 at 8:58

I know they are building a staging pond right there where 481 makes that sharp turn going to 191.  I believe the staging pond is in Sabine.  The line is right there somewhere. 

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Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2017 at 9:14

That stretch of 481 is on the parish line.  10N - 14W.

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Permalink Reply by SL on August 1, 2017 at 9:18

Skip, have you heard anything about this pond they are building?  I was told it was Indigo's pond and it was going to be a staging pond for water from the lake.

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Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2017 at 11:11

On the pond, no.  However it makes sense to source from a pond than directly from the lake.  There are a number of fields that are within reasonable proximity;  Benson, Pleasant Hill, Converse, San Miguel Bayou, San Miguel Creek. etc.

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Permalink Reply by Kurt grussendorf on August 1, 2017 at 9:45

SL: Would be interested to know if that is Indigo or some other outfit. You can't frack with out water!

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Permalink Reply by Martin on August 2, 2017 at 9:34

Does Indigo need any form of state permission to draw large quantities of water from Toledo Mend lake? It is shared with Texas.

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Permalink Reply by Skip Peel - Mineral Consultant on August 2, 2017 at 9:47

The LA Sabine River Authority would issue a permit.  They've done so multiple times in the past and it doesn't appear to be much of a process.  The energy company or their subcontractor usually gets a short term lease to use private property to access the lake.  If the distance is not too great to the staging pond they may install a temporary, above-ground pipeline.  If not they will need enough of a footprint to stage tanker trucks and road access into the site.

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