What is the thickness of the AC in Avoyelles Parish as compared the the thickness of the AC in West Feliciana Parish.?  And is there any advantage for greater thickness?

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Thanks, Jay.

Jay, I don't understand COP paying the kind of money they paid in an area with no porosity or permeability and a lack of natural fractures. I don't understand this matrix stuff. How do you create a reservoir with no product?

< How do you create a reservoir with no product?>>>

Doesn't matter. They're gonna flip this baby just like Aubrey showed them.

Who they gonna flip it to, Bob?

Anyone know who might have bought Goodrich's interests in East & West Feliciana for $3 million?

Or Australis.

Spring Branch,

Actually a lot of it may have already been flipped, going by the recent transactions: Marathon, EOG, Conoco Phillips.

So now the suckers are who we're looking at. 

You lost me there!
What does that mean?

Flipping involves the purchasing and subsequent sale of something at a markup in price, in this case (oil and gas rights) at obscene markups for some pretty iffy prospects.

EOG acquired the majority of their central LA AC leasehold at $200 to $300 per acre.  That was their first mover advantage although they have continued to lease and paid up to $1500 per acre since the cat has been out of the bag.  I suspect that their average price per acre is well under $1K.  COP has stated an average price per acre of $900.  Petroquest appears to have spent around $350 per acre.  None of these prices are obscene in comparison to other recent land program costs.  In fact, they are down right cheap.  Price is relative to return on investment. The true value of the acquisition cost will not be known until a number of wells have been drilled.  Considering the areal extent of the land leased to date, I'd say the second half of 2019.

I agree with Skip. The risk/reward crunch out seems to have a pretty favorable value at $70 oil on E&P. Plus, there's the added benefit of the TMS as a hedge on the AC that's north of the Shelf. As Radar from M*A*S*H would say: "Wait for it."

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