Replies to This Discussion

Permalink Reply by JB13 on February 26, 2010 at 9:36

I have been presented with $175/3/16th/5 year.

Permalink Reply by Janet on February 26, 2010 at 9:41

Thanks for the information. I thought the offer was a little low.

Permalink Reply by Skip Peel - Mineral Consultant on February 26, 2010 at 9:54

Janet. It is not a shale related offer or play. Probably Smackover. The Haynesville formation along the state line and north is sand, not shale.

Permalink Reply by Mark on February 27, 2010 at 4:57

The play in Columbia county seems to be something called the Bossier Shale and while it does not have as much pay as the Haynesville it would appear interesting. Yesterday there were 15 landmen in the court house so something is going on here besdes just an oil play. Mark

Permalink Reply by Jim Thomas on March 1, 2010 at 7:57

How do you know it is sand not shale along the state line. Is it based on a test well in south arkansas? I am interested in knowing more.

Thanks
Jim

Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2010 at 8:21

Jim. There are numerous Haynesville Sand wells in the state line area. Some thirty or so years old and still producing. These are vertical wells that are capable of such production profiles because of the permeability of the sand formation. If the formation was shale (super low permeability), even with fracture stimulation they would not produce in these quantities for this length of time. There are also numerous Gray Sand and Smackover wells in the state line area that have penetrated the Haynesville zone. If the logs of those wells showed the formation to be shale capable of production, there are operators there that are capable of horizontal completions (XTO, Petrohawk, KCS, El Paso, etc.). The shale grades to sand somewhere in the area of 20N to 21N depending upon how far east or west the township is located. The shale in the 19N townships and possibly in some areas the northern half of the 18N townships, has even lower permeability than the HS further south. A number of wells have been drilled in the last 18 months to test it and all exhibited significantly lower production than the horizontal wells south of I-20. It will take natural gas prices in the $10 or greater range to make those wells economic.

Permalink Reply by Jim Thomas on March 1, 2010 at 8:41

Skip - thanks for the information. I have property in Union County about 14 miles from El Dorado south off of Hwy 82 toward Strong. What do you think of this area for the Haynesville Shale? Do you think it is Shale or Sand and what about the leasing potential for this area. I have a prominent mineral position in this area and would like to consider leasing it.

Permalink Reply by Skip Peel - Mineral Consultant on March 1, 2010 at 8:50

Jim. Unless the Haynesville formation somehow changes back to shale from sand this far north, you will be looking at interest in Smackover or other deep, tight sand formations that may be economic with horizontal completions. All the geology that I have reviewed would indicate that it is highly unlikely that Haynesville Shale exists in your area. Member Aubrey C. Sanders Jr. has mineral interest in this area and is also a geologist by trade. He is far more qualified than I to answer your question. I suggest that you seek his input.

Permalink Reply by RAZORBACK on February 27, 2010 at 11:14

I have been offered $175/3/16th/ 4years with option for 4 additional years in Columbia Co. Not really a good deal. Turned it down.

Permalink Reply by Jim Thomas on March 1, 2010 at 7:58

I was only offered $125/acre, 3/16, 4 years with option for 4 additional years@ $150/ac. Not real happy with offer either.

Permalink Reply by Jim Thomas on March 1, 2010 at 7:59

What county are you in.

Permalink Reply by RAZORBACK on March 1, 2010 at 8:30

COLUMBIA

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