Replies to This Discussion

Permalink Reply by Ron Jon on March 14, 2011 at 14:14

Did that tract catch any bids?

Permalink Reply by Skip Peel - Mineral Consultant on March 14, 2011 at 14:34

http://www.gohaynesvilleshale.com/forum/topics/march-2011-la-state-...

Permalink Reply by Ron Jon on March 14, 2011 at 14:35

Thanks Skip!

Permalink Reply by Spring Branch,mineral owner on March 6, 2011 at 4:37

I think "upwards of $50,000" is stretching it by about $20,000 for the Haynesville.

Permalink Reply by Dion Warr, CPL on September 26, 2011 at 7:01

SB:

 

Depends upon who's doing the metric on the contract.  If one adds the bonus and the potential rental / extension payment(s) together, this is not out of the realm for leases acquired "at the top of the market".  Most industry people would not measure the contracts in that manner, as the race to HBP typically occurred within the initial primary term (most of maximum value bonuses would have been set to expire this year between March and this month).  Most of these leases if not already HBPed have been allowed to expire.

 

So, if you're looking at the paid contract strictly as "sunk costs", you would be absolutely correct.  If you're reading like the average newspaper writer might look at it, adding up the birds in hand and all of the ones in the bush would lead to the most sensationalistic result.  Which is the number that would sell the most papers.

 

Apologies for the tardy reply; I just happened to see the thread bump.  But I would would count on this high figure being bandied about in the press as the play unfolds.

 

Permalink Reply by Joe Aldridge on September 26, 2011 at 7:23

DW,

I have a friend with a Sister that has property in the HA and he told me that she got 30,000 an acre. I don't know how much acreage was involved. I'm sure there were small land owners that probably got the 50K. And I'm not sure they figured in the rental or whether there was a rental. The reason he told me this is he and she also own property in the TMS in MS and she signed an extension on a lease with a company for free and then the company comes to him and expects him to also extend it for free. The last I heard he had a problem with that.

Permalink Reply by Keith Mauck (Site Publisher) on April 1, 2011 at 8:27

New Tuscaloosa Group Added

 

http://www.gohaynesvilleshale.com/group/tuscaloosamarineshale

Permalink Reply by DJG on May 5, 2011 at 7:16

From Devon's Quarterly Conference Call yesterday:

------------------

 

Operator

Your next question from the line of Scott Hanold from RBC Capital Markets.

Scott Hanold - RBC Capital Markets, LLC

I was wondering could you provide a little bit more color on what you're seeing in the Tuscaloosa Shale? I mean, did you have some like vertical well penetrations that you like to see? And I apologize, I missed some of your color that you did provide around it. Did you phase now just to another shale play in the area?

David Hager/Devon

Well, yes, let me just give you a few of the things that we like about the Tuscaloosa Shale. And having said that, this is a frontier place, so I do want to mischaracterize it as something else because -- and frankly, we have been leading the industry by taking our position here. So it is a frontier play. But let me tell you some of the things that we do like about the play that give us reason for encouragement. It is the stratigraphic equivalent to the Eagle Ford Shale. It is deeper than Eagle Ford Shale about 11,000 to 14,000 foot depth, but it is a stratigraphic equivalent to it. There has been oil production established up dip in the Tuscaloosa Shale also. There have been some vertical wells that have been drilled in there that indicates that you're getting for a shale-type play, that has good porosity and permeability. We're also seeing some carbonates in there, which indicate that maybe somewhat brittle and able to be fractured. We've seen IPs on the vertical wells up to 300 barrels per day. They were just about -- just a very small number of horizontal wells have been drilled a couple or 3 years ago, and they were of limited horizontal link on the order of 1,500 to 2,000 foot with only 3 stages. But they tested up to 500 barrels per day from these very limited and minimally frac-ed wells. So all of those give us reasons for encouragement. Now having said that, it's very early on, and we're going to start drilling some horizontal wells, we need to get more data on rock frac-ability. And there are some sands below that are wet, we need to stay away from those. We need to get more information on the phase, oil and natural gas because just aren't that many wells. We know exactly who are on the play, the boundaries between those are. So there are some risks associated with it. I don't want to mislead you. But there are some encouraging qualities to establish a 250,000-acre position for less than $50 million, that's kind of thing we're successful. We can create an awful lot of value.

Scott Hanold - RBC Capital Markets, LLC

Okay. Great, great. And you said, you're going to drill 2 horizontal wells there this year, is that correct?

David Hager

Yes, we're going to have a rig out there here in the second quarter.

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