Replies to This Discussion

Permalink Reply by king john on December 17, 2009 at 3:10

i've been holding back a little bit on this whole xom/xto deal because i have mixed emotions about it. i am in a lease with xto and i can tell you they have been great to work with. i've been waiting to hear how this merger is going to go down, will xto continue to operate as xto/ an xom company? or will they be swallowed up and now i will deal with xom and their land office. i can tell you i would rather deal with a bull than a gorilla.
when i first heard of the buyout, it made my stomach sick. i question xom's motives. it occurs to me, with xom, just having gone into the LNG bizz, there may be a little more to it than meets the eye. i have seen before in bussines, where one company will buy out their competitor because it less expensive than competing. with NG being cheaper and easier to produce in other countries, and LNG inexpensive to ship, why would they want to produce domesticly now??? my point is that if xom were to remove xto's market share and then another major did the same thing with another independent, that could really boost the price they are able to get for their LNG. trust me i hope thats not the way its gonna work out.
kj

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Permalink Reply by Spring Branch,mineral owner on December 17, 2009 at 8:47

I would possibly agree with you, king john, except that XTO is a relatively small portion ot the total shale play in this country. For example, I am not sure what percent of the Haynesville completions in Louisiana are XTO copmpletions, but I can assure you that the number would be very, very small and certainly not enough to affect price I wouldn't think. A quick review on Sonris does not seem to indicate a single publicly available IP on the half dozen or so wells they have drilled or are drilling.

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Permalink Reply by Spring Branch,mineral owner on December 18, 2009 at 2:36

I'm not sure what XTO has done with the Haynesville in Texas, but they have done very little in Louisiana compared to most of the other operators. I'm actually looking at some minerals that were leased to Hunt Petroleum in 2008 in Southern DeSoto, so I guess I might have Exxon as an operator if I acquire them. I'm not sure if that is good or bad. If they operate like Swepi, it is very, very bad.

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Permalink Reply by jffree1 on December 18, 2009 at 5:50

SB, here is my best guess for East Texas:
Panola Co.
38 permits of which 9 are completions & 2 are drilling now.

Shelby Co.
8 permits with 3 completed

San Augustine Co.
1 permit in bossier and 2 wildcats

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Permalink Reply by Spring Branch,mineral owner on December 18, 2009 at 10:44

They just today filed hearing applications for 8 wells in Bethany-Longstreet, 13/15 and 13/14.

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Permalink Reply by jffree1 on December 18, 2009 at 13:23

Maybe they are about to get busy...

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Permalink Reply by Skip Peel - Mineral Consultant on December 18, 2009 at 13:35

SB. Considering that well permits do not require applications, I assume you are referencing alternate unit wells.

Permalink Reply by Henry on December 18, 2009 at 2:38

ShaleGeo and Spring Branch,
A quick tour of sonris shows XTO with only 6 permits issued for Haynesvill wells. Not a major player (yet).

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Permalink Reply by Spring Branch,mineral owner on December 18, 2009 at 2:41

Yes six equals a half dozen or thereabouts. Thanks Henry.

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Permalink Reply by Henry on December 18, 2009 at 6:36

SB,
Oops, I missed your "half dozen" number in the earlier post. My bad.

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Permalink Reply by Spring Branch,mineral owner on December 18, 2009 at 10:42

No prob

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Permalink Reply by Spring Branch,mineral owner on December 19, 2009 at 0:21

Skip, that woild be correct.

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