Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on March 10, 2009 at 3:17

I am with you Jay, it is too hard to follow the current discussions.

Permalink Reply by widowwoman3 on March 10, 2009 at 12:11

agreed

Permalink Reply by J. A. on March 10, 2009 at 3:45

What townships and ranges are generally accepted as the core area of the shale? We have some acreage in the greenwood waskom fields and were curious from the geology view.

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Permalink Reply by widowwoman3 on March 10, 2009 at 12:17

skip, just noticed on the scheduled of public hearings that samson has applied for cotton valley and haynesville in T11 R12 at the i49 evelyn exit. they have my property listed as pending unit which is strange because i leased probably 100 acres to encana. we were told by shell that the chemard lake field at evelyn west of evelyn i49 exit was a shell/encana field so does this mean that samson does not intend to be the operator as you suggest? Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on March 10, 2009 at 12:24

I do not have a unit order on my list for Samson in 11N-12W. What date is this hearing set for?

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Permalink Reply by olddog573 on March 11, 2009 at 3:19

http://dnr.louisiana.gov/CONS/CONSEREN/hearings/2009/04APR/09-410&a...

here is the link WW3 was referrring to I think.

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Permalink Reply by Skip Peel - Mineral Consultant on March 11, 2009 at 4:52

Thank you, olddog. WW3. If olddog has the correct unit application, and I suspect he does. 11N-12W is not included. This Samson Contour application is for S31-12N-10W, S36-12N-11W, S6-11N-10W and S1-11N-11W. The "pending label" on your section does not indicate that it is pending for Samson Contour, just that a unit application has been submitted but not yet approved by some operator. Though this area in general is an Area Of Interest (AOI) for Encana/SWEPI, there are other E&P companies active there as well. In the first township listed above, Encana has 5 sections, SC 1. In the next, Long Petroleum 2, SWEPI 4, Petrohawk 1, Chesapeake 3 and SC 1. In the third, Samson adds 1 to their existing 3, no other operators have unit apps in this township. The fourth, SWEPI 2, SC 1. We may have to start calling Samson Contour the Energizer Bunny of the Haynesville Shale. Even at sub $4 natural gas they keep going and going. The 4 sections included in this unit application bring their grand total to 73. Unit status approaching 50,000 acres. As to who will be the operator, I do not have sufficient information to even make an informed guess. I just doubt it will be Samson Contour. Strange doins in HS land.

Permalink Reply by pilgrim on March 10, 2009 at 3:33

Thanks for all the information- I really wonder if SC is serious about drilling -Now are they are in the heart of the play- are they going to produce or is SC going to drill vertical just to hold it in production? We have a small amount of acreage in our unit, but most of the big land holders already have leases, some of which will expire later this year- we are just wondering will SC drill and hold and try to flip it. We are thinking of remaining unleased- If you were in our situation what would you do? SC first offer was $1000 bonus and 25% royalty.

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Permalink Reply by Skip Peel - Mineral Consultant on March 10, 2009 at 4:19

pilgrim. I do not have sufficient information to advise you on leasing. I do have a suggestion that may help. For those lessors approaching the end of a lease term and are undrilled, learn to access drilling permits on SONRIS. In the recent past, if there was no permit application within 90 days of the term date, it was practically impossible for most operators to move quickly enough to hit the dirt with a drill bit before expiration. That time period has probably shortened somewhat now that rigs are available on short notice. But in some cases, even with rigs available, the lessor has capital constraints. If Samson Contour intends to HBP by vertical completions, I suspect they will need to pick up their drilling pace big time. And soon.

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Permalink Reply by Cathaus on March 10, 2009 at 4:35

Skip,
Are we in the North Caddo section just out of luck when it comes to the Haynesville? I am in T18 R15 S10. Can we expect anything positive to come our way?

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Permalink Reply by Skip Peel - Mineral Consultant on March 10, 2009 at 4:53

Not out of luck, Cathaus. But the value of the minerals are in question because of the HA wells reported to date. There is value in a well that has an IP of 4 MMCFD. It's not as valuable as a well that IPs 15-20 MMCFD obviously. And operators who have leasehold in north Caddo and areas further south in the play will probably spend their limited capital where production is best. With additional completions in north Caddo in the next few months, more will be known about the reservoir characteristics and the possibility of utilizing different completion profiles. With low ng spot prices and operators with severe capital constraints, the near term effect will probably be much less drilling in north Caddo for the foreseeable future. If the HS is of a lessor quality in north Caddo, there still remains the possibility of valuable "combo plays" that commingle HS production with other zones. A similar scenario will occur along the periphery of the play over time as development picks back up in the future and more step out drilling determines variances in the prospective nature of the shale. We are still in the very, very early stages of this play. We all still have a lot to learn.

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Permalink Reply by J. A. on March 10, 2009 at 4:41

jim will you post the link

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