Replies to This Discussion

Permalink Reply by ALongview on May 8, 2009 at 11:05

Do you believe it has nothing to do with the quality of these acres and just an inability to get to them within the leases terms?

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Permalink Reply by Les Bamburg on May 8, 2009 at 11:14

ALongview, EnCana/Shell controls a significant amount of acreage in the southern portion of the Haynesville Play play in Red River, Natchitoches & Sabine Parishes under leases that will expire in the next couple of years. It is logical for them to priortize the acreage they can get drilled and try to sell, swap, JV etc the remaining acreage to other companies. Otherwise they will just lose the acreage and recieve no value.

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Permalink Reply by ALongview on May 8, 2009 at 11:20

So, is most of the acreage they leased up not HBP? In comparison, Devon's acreage on the main page poll looks huge but a large portion of it is HBP so they may not have the same issues. Do you think the acreage they put up is a reflection on its quality or just 6 of one half-dozen of another? Thanks for the answer.

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Permalink Reply by Les Bamburg on May 8, 2009 at 16:06

ALongview, I would think EnCana/Shell would use several criteria for assessing the priority of their acreage with geologic parameters being one of those. Another may be the % of the acreage they control in a section. For example a lot of the acreage for sale in T13N-R8W is located in Haynesville Units operated by Samson.

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Permalink Reply by Skip Peel - Mineral Consultant on May 8, 2009 at 11:19

ALongview. The first report was that Encana had placed it's leasehold in 13N - 8W and 12N - 8W in an on-line auction on an Internet website utilized by the industry. My first reaction was that seemed an unusual way to dispose of leasehold that was prospective for the HS. Therefore, the first thought was that Encana/Shell did not care to develop the area as it was not sufficiently prospective. Now comes this Calgary Herold article that indicates that Encana/Shell is looking for a partner to develop the leasehold. Placing leasehold in an on-line auction seems a strange way to seek a development partner. I am not an "industry expert" and much of the activity in the play leaves me scratching my head. I suspect that future reports will clarify this situation. We all know that sooner or later the edges of the play will be determined and that many will be disappointed when that happens. This is just another chapter in the long running serial, "As The Shale Turns".

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Permalink Reply by Les Bamburg on May 8, 2009 at 16:09

Skip, one possibility is EnCana/Shell are using this as a way to determine the value for acreage that would be utilized in making a deal with a new partner.

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Permalink Reply by Les Bamburg on May 9, 2009 at 3:14

Jim, I would just say EnCana/Shell are retaining most of their acreage in T12N-R8W & T13N-R8W. So it is not a complete exit.

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Permalink Reply by Les Bamburg on May 9, 2009 at 5:06

Jim, the news article quoted the JV would be for acreage in Sabine & Natchitoches Parishes. This would seem to fit as that is where a lot of their undeveloped acreage is located.

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Permalink Reply by Grayling on May 9, 2009 at 2:58

The edges of the shale does not end at 13N 8W or 12N 8W according to the experts I've talked to.

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Permalink Reply by Grayling on May 9, 2009 at 3:41

I wonder why.......

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Permalink Reply by ALongview on May 9, 2009 at 4:26

Jay, Could you look at the depths of the log that I put on pg. 3 of this discussion and tell me how they relate in terms of depth to other producing areas? I know your area of expertise is in LA but maybe it compares to somewhere on that side of the shale. Also, it seems that the estimates in conference calls are for around 200 foot thick shale in the area referenced. Are most similar depths recording similar bottom hole temps or does it change based on the composition of material on the way to that depth or maybe the thickness and therefore pressure of the rock? Thanks for sharing your knowledge.

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Permalink Reply by VSC DeSoto South on May 8, 2009 at 11:22

If they would move a little faster they could get to all of it. They are very slow in comparison to the other players. Not to say they will not need another partner to explore and drill, but I do believe if they were serious about exploring all of their acreage, they would move faster.
I am just a person with a layman's opinion, don't mind me.
I am leased with them, I am in the southern part of DeSoto, at this rate if they find a partner and the partner moves faster than they do, then I want the partner. Mind you, I also want the price of NG to go up. I;d also like the deepest, easiest to access shale ot be on my land.

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