BP America is developing a 2,500 acre tract owned many years ago by the Angelina County Lumber Company. This company is now defunct although the minerals were retained and are currently owned by the many heirs of Joseph H. Kurth, Sr., Simon W. Henderson, Sr., and Sam Wiener (the original founders). Originally EOG Resources planned to develop this tract and they joint ventured with working interest partner Black Stone Minerals (and others) to develop this prospect. EOG drilled the Sarge Unit to test the prospect and the Sarge production volume has been one the best producers in the Haynesville Play. A large area 3D seismic effort was subsequently completed during the 2012-2013 period. Late last year and due to EOG’s current business strategy of focusing on west Texas oil production, EOG sold their interests to Black Stone Minerals. Black Stone has now partnered with BP America to develop this tract.
I applaud these two businesses for developing this area and increasing the value of adjacent mineral tracts like mine. However, I have recently seen relatively unsophisticated mineral owners, with smaller tracts that are needed to fully develop these 960 acre units, accept subpar leasing terms. I would advise anyone reading or researching the Go Haynesville Shale Forum to educate themselves on current mineral lease market values in the north Angelina, west San Augustine and East Nacogdoches Counties.
Thanks and good luck.
Mike what are these "Subpar terms"?
A 9/40ths. royalty with the right cost free clause can be as good or better than one quarter without. Is the no cost language in the lease form supplied by the lessee? Or an experienced O&G attorney working for the lessors? I am aware of recent LA Haynesville leases at a quarter with some royalty deduction limitations but that doesn't mean there are any in E TX.
You're welcome, Mike. It's a good story to stick to. Hard to come by much leasing intel in that part of E TX so much appreciated.
I think his EUR map is off somewhat. There are several wells in southern Shelby County that have already produced or will soon produce over 6 BCF.
You can probably safely ignore that map (no offense, Mike). It's from Art Berman who has been talking down about Haynesville from the beginning.
Trouble is that he is comparing apples to kumquats because a lot of the existing wells are Phase I (my term for 2009-2010) hbp wells surrounding a handful of exceptional Phase II (2011-2013) wells which had longer laterals, smaller stages w/more perfs and (probably) different frac design. Now we're in at least Phase III and possibly Phase IV with lateral length, staging/perfs & frac design but everything besides lateral length is hard to to discern because XTO and BP don't put that data on their public reports... and they are they only operators still drilling today.
I am in the middle of two wells that are being developed right now near the FM 1669 area, most of us leased in this area at the beginning of the year. I heard yesterday that there was an even better well that was completed not far from here that is a good producer, has anyone heard anything about it?
I also saw on 1669 they are clearing land right on the side of the highway and wonder if this will be another well site. Seems not very many people around this area know to look online or have found this group. I would like to thank everyone for posting and making the information available to the new people. I knew to hire an attorney to have my contract written up and it was money well spent. Thanks again and if anyone has any information I would love to hear it about my area.
Rumor is a second well is planned for the Huntington area. The Amp Angelina pipeline should be near completion which will allow for further development. BP wells north of Huntington are good producers. If you look at the completion reports, these wells have potentialed between 10 million and 15 million cubic feet per day (per bore). BP typically drills two bores per permit (exploratory wells are single bore). Four rigs are currently running north of HW 103E and are focused in an area where Black Stone Minerals has a heavy concentration of minerals that they recently purchased from the Angelina County Lumber Company heirs. BP is quite methodical with their well placement, with infill drilling being a norm. This is a long term development effort, and it's going to take some time for BP to fully appraise and develop the massive amount of acreage that they have currently leased.
I am near the wells they are drilling north of HW 103E and talked to a man that is doing the land research that he says is the last step before they bring in the rig. What I am wondering is when I look at the wells they have drilled, I see #1H and #1HB and figure these are the two bores you speak of. What do the H and HB stand for?
H = Haynesville, B = Bossier.
Thank you for the explanation.