Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 3, 2014 at 9:56

Thanks for posting, mel.  Here is a little more detail for interested GHS members.

PRESTON EXPLORATION, LLC

• Significant operated working interest in long-life East Texas gas fields
• Working interest averages 75% with average overall NRI of 78%
• Operated interest in 39 wells in Harrison, Panola & Rusk Counties
  • 32 producers, 4 shut-in, 2 inactive, 1 salt water disposal
• Overriding royalty interest in one well in Panola County
• Current Net Production ~ 3.5 MMcfepd (2.5 MMcfpd, 35 bopd, 125 bnglpd, 750 bwpd)
• YTD Average Net Cashflow of $314,000 per month (Jan ’13 through Apr ’13)
• Low operating costs < $1.04/mcf
• Substantial acreage position of over 14,948 gross acres and 12,202 net acres
  • Predominantly HBP acreage (8,544 net HBP / 3,658 net term)
• Term acreage is located in Upshur County in the SE Gilmer area
• Upside potential for horizontal development in Cotton Valley Sands
• Average EUR of 6.0 BCFE for 58 Proved Undeveloped locations
• Attractive PUD rate of return of 50%
• Low F&D costs of ~ $ 1.12/MCFE
• Additional unquantified upside in behind-pipe Upper Cotton Valley Sands
• Long reserve life index of 10 years PDP and 100+ years Total Proved (1P)

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Permalink Reply by adubu on January 4, 2014 at 7:38

Skip--- there are also proven Shale below CV and Lime below shale near their acreage

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 8:09

adubu--I know.  Anadarko has been drilling Haynesville Shale w/liquids in addition to CV for 3 years in Panola.  Other operators, Devon and BP come to mine,  are also drilling exploration wells in those counties and some adjoining.  Wet gas is a popular target and the Duke facility at Carthage offers good connection to markets.

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Permalink Reply by JHH on January 4, 2014 at 10:47

Thanks for posting this!

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Permalink Reply by adubu on January 4, 2014 at 14:30

Skip --- I am still looking to find those Haynesville Shale Well that You talk about APC drilling in East Texas with liquids and condensate. The only one I find are Dry Gas. Yes they have some excellent CV, TP, and Petti with good NGLs. So if you be kind give me the Well API # so I can look up production on RRC website and see these "wet Shale" wells THANKS I see some shale well report 40 or 50 BOE every 8-9 months when get about 2 BCF of total gas---3 or 4 barrels/ month will not get you there except for the NG most shale well are mostly totally DRY in east texas -- if you can show me the well I be happy to yield to you---I bet Jay correct they got only surface down to CV but I have not read report on deal---Skip do you know if only to CV or did they buy deep rights also?

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 14:48

adubu, you are not looking hard enough.  And the article is quite specific that it is CV rights that are conveyed.

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 15:02

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Permalink Reply by adubu on January 4, 2014 at 16:10

Skip/Jay ----not ready to yield yet for you have to explain to me --yes I see the G-5 above but on the G-1 report on well( same tracking #55655)IP gas only 5401 mmcfd and says NO CONDENSATE --- then look up production on this well through Oct 2013 it reports 1,862,609 total mcf gas ( 1.862 BCF) but ZERO Condensate, oil, or liquids --- well lease number 267415. API 36537852 on well # 53HH ---simpler data also on well #54 ---this data on statewide production data query system under specific lease query ---so as they say "what happen to the oil" please explain this then I yield -- call RRC RE: production record of well since IP -- I hope you are correct and I have to yield -- I wonder if R Owners getting paid for any liquids or just gas -- look forward to your explaination--this confusing---also check on GIS MAP click on icon of this well open production same numbers of gas but NO OIL--ALl Zero each month

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Permalink Reply by adubu on January 4, 2014 at 16:27

Skip/Jay typo should be 5401 mcf not mmcf Man that would be MONSTER well

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 16:31

I don't think I can persuade the RRC to alter their reporting regs just for your sake.  The fact that APC has drilled over 100 of these wells in the last few years on acreage already HBP should be more than enough proof.  You can also review their corporate presentations for further proof.  Here is an excerpt from one.

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 16:42

Here's a cut and paste of a reply by tc in a recent discussion thread.

Reply by tc on December 18, 2013 at 2:21pm

Panola is all about liquids.  As a NG only play its so-so, but add in liquids and it profitable.

• CGU 27 #53HH, Anadarko E&P: 2.275 MMcf/day IP, 16.0 Bbl/day liquids, 18/64" choke, 5,015 psi; Perfs: 10,997-15,741, length: 4,744 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DILLARD, H, A-166 
• CGU 11 #52HH, Anadarko E&P: 5.66 MMcf/day IP, 162.0 Bbl/day liquids, 20/64" choke, 5,115 psi; Perfs: 11,060-17,198, length: 6,138 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DUNCAN, S, A-158 
• CGU 11 #51HH, Anadarko E&P: 6.14 MMcf/day IP, 180.0 Bbl/day liquids, 20/64" choke, 515 psi; Perfs: 11,032-17,177, length: 6,145 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DUNCAN, S, A-158 
• CGU 24 #56HH, Anadarko E&P: 2.919 MMcf/day IP, 69.0 Bbl/day liquids, ?/64" choke, 5,340 psi; Perfs: 10,855-16,176, length: 5,321 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: BLANKENSHIP, D, A-48 
• Parker-Hopper (Allocation) Unit #1H, EOG Resources: 9.601 MMcf/day IP, 135.0 Bbl/day liquids, 64/64" choke, 4,875 psi; Perfs: 11,142-19,130, length: 7,988 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: LINDSEY, C, A-386 
• Parker-Pierce-Hopper (Alloc) Unit #1H, EOG Resources: 5.225 MMcf/day IP, 136.0 Bbl/day liquids, 23/64" choke, 4,706 psi; Perfs: 11,142-18,641, length: 7,499 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: LINDSEY, C, A-386

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Permalink Reply by jffree1 on January 4, 2014 at 17:30

adubu,

You won't find any condensate reported on APC "HH" wells but if you will go look up the new EOG wells in Panola Co. they are reporting their condensate production. I have had this discussion with others and it appears that APC is sending the wet stream to a gas plant for separation. As Skip said, APC has drilled upwards of 100 wells since they announced that they had wet Haynesville. They aren't after dry gas.

EOG wells:

Parker Unit #1H  lease ID #267450

Boynton A #1H lease ID #267272

Morris Unit #1H lease ID #268326

Parker-Hopper (Alloc) Unit #1H permit #764163

Parker-Pierce-Hopper (Alloc) Unit #1H permit #764398

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