I've noticed a trend of late in the RigData Weekly Rig Report. There has been a significant shifting of rigs further south in the LA fairway. DeSoto continues to be the parish with the most rigs and there are 2 rigs running in Bossier and 4 in Caddo. What catches my eye is the increase in Sabine Parish, 8 rigs where there have generally been 1 to 3. Including the Comstock rig drilling in the Logansport Field, that's 9 rigs below Mansfield. For those who are familiar with location by section-township-range, the Town of Mansfield is a good benchmark to divide the play into north and south halves on an east/west line. Mansfield lies in 12N 13W covering the northern two thirds of the township.
Not far south of Mansfield, the early play lost it's momentum when natural gas prices cratered. There is a lot of good rock down to at least the 9 North townships that will get some wells this year and give us a better idea of how much room the play has to run. Those townships could very well contain the best Mid-Bossier reserves so a two for one. It will be interesting to watch. Good luck to those in the south.
This is a good point given that long laterals and dual-laterals have been employed with increasingly better results on the west side of the Sabine. What is left to uncover is how well the strata will behave as one gets closer to the ancestral islands around the uplift.
Dion, there is leasing and infrastructure work going on in that area now. It will be interesting to see just how close economic wells may be drilled to Natchitoches Island.
to this point, and I've mentioned this before on another thread, I have acreage in 2-9N-12W that had a CUL completed in September 2016 by Vine (GEP owns 1/2 of the well), and the production declined very little for the first 17 months. April showed a drop, but this is a great well. I never can tell if the well is a Bossier or not, but Bossier is strong in that area.
For the unwashed, can you tell us just exactly where the ancestral islands, uplift and Natchitoches Island are located.
Steve, I am marginally familiar with Natchitoches Island as the old timers referred to it. I know nothing about the other geologic features that define that immediate area. Suggest that you ask Dion.
Skip, would you consider 10-13, 10-14, 10-15 in the area? I believe those are correct. They are both just north of Sabine line. I think it is referred to as the Benson and Converse fields. Have you seen anything here? I know there was one permitted for I believe 10-14, but the permit expired.
Most of the activity I have noticed is "pre-drill". Before companies drill alternate wells, they must apply to the state for spacing. I've seen a good bit of that type of activity that is now turning into rigs on the ground. Benson and Converse are certainly in that area.
Good news! :) As always, I appreciate your quick responses!
BP seems to be looking at the same trend in East Texas. I believe they have about 4 rigs running in areas where Blackstone has a strong mineral position. Angelina, Shelby, etc.
Always like what you have to share Skip.
I am helping a friend's family with a lease negotiation on some acreage in Red River Parish (Red Oak Lake Field).
I was wondering if you have heard of any leasing activity in that field.
In the extended dog days of low natural gas prices, new leases are no longer about the bonus up front. Yes, get the most up front you can but make sure you get the best royalty you can and the absolute best no cost clause. Since you will be living with this for a long time, that more than makes up for the difference in a few dollars of lease bonus. Better yet, use a really good oil and gas attorney.
Louis, there has been some lease interest west of Lake End by Indigo. I've heard several lease offers from clients but they vary quite a bit by specific location and tract size. I think Indigo has brought in a land company to do the leasing but don't recall the company name off the top of my head, it's in a discussion thread somewhere here on the site.
Indigo is showing some interest in that general area. I've hear of several offers but hesitate to post them because they vary so much. Obviously specific location and tract size has a lot to do with the variations.