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Permalink Reply by Skip Peel - Mineral Consultant on October 11, 2009 at 3:48

Those existing units that get drilled will be developed by Encana. Some will be assigned to other operators in an effort to consolidate lease blocks for development purposes (the Chesapeake deal is a good example). The wells that Encana is currently drilling or will drill in the near future in far south DeSoto, north Sabine and northwest Natchitoches will provide the science that will inform the decisions on which areas SWEPI/Encana will hold on to. Patience Henry, none of us would care to see vertical HA wells or farm outs to small operators for shallow wells in order to HBP leases but that could happen. I doubt that SWEPI/Encana will let many leases expire.

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Permalink Reply by Henry on October 11, 2009 at 4:19

Skip,
Let's hope you are right. The next 6 months will tell....

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Permalink Reply by Spring Branch,mineral owner on October 11, 2009 at 7:49

I wouldn't be surprised if they weren't being top-leased by other operators right now.

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Permalink Reply by joevic on October 12, 2009 at 7:48

Skip,

Could you explain a little about the Chesapeake deal you are referring to above.

Thanks,

joevic

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Permalink Reply by Skip Peel - Mineral Consultant on October 12, 2009 at 7:59

joevic. Encana/SWEPI assigned a number of their leases in southern portions of the Play (south DeSoto and north Sabine) to CHK. They are all listed in a conveyance document which is in the public records of the DeSoto Parish Clerk of Court.

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