Replies to This Discussion

Permalink Reply by jffree1 on August 19, 2011 at 4:49

Nick, EOG also has four additional permits in the Haynes Unit.  I expect that EOG will maintain a presence in Nacogdoches and San Augustine Counties as will Exco who has eight new permits in the Cameron Minerals Unit.

Permalink Reply by j garrett on August 21, 2011 at 16:37

The Cameron Minerals Unit and It's new wells are side-by-side with the ACLCO unit and it's new wells.  I believe all or part of the minerals in both units are owned by the old Angelina County Lumber Company. A possible reason for the development they've laid out might be a clause in the ACLCO lease requiring full development.  Either that or this is some kind of test to gather development data for future wells.  Expensive test though, therefore I'm guessing ACLCO required it.

Permalink Reply by jffree1 on August 21, 2011 at 17:11

I had wondered if that might be the case (with a development clause).  Why would anyone want all that gas produced now with the price falling again?  It doesn't seem to make good sense. 

Permalink Reply by j garrett on August 22, 2011 at 4:22

My understanding is that the ACLCO minerals are in the hands of 100-200 "inheriters" whose ancestors owned the stock in the company.  A single entity manages the minerals, including getting all the leases signed for any party willing to pay their price. With such fractured interest, it may take a bunch of wells to make a check of decent size.  That said, I sure wouldn't mind if my grandaddy was a stock holder!

Permalink Reply by nick waters on August 22, 2011 at 3:02

Thanks, this all makes sense.