AOGC has put a stipulation on the Triad Atlanta well permit which states Triad must identify the operator behind the leasing before the state will allow them to drill. This means we'll either find out who's behind Triad or they won't drill the well. I guess we'll see soon. Any other thoughts?
No I was not at the meeting.I quoted the AOGC attorney.I spoke with him shortly after the meeting.I don't think Triad had a response.I think they may have been caught of guard.
Here's what you'll have been waiting for!!
Unveiled a potential new unconventional horizontal oil play.
§ SWN has put together a 460,000 net acre position targeting the Lower Smackover Brown Dense formation, an unconventional oil reservoir found in southern Arkansas and southern Louisiana. The formation is found at vertical depths from 8,000 to 11,000 feet and appears to be laterally extensive over a large area ranging in thickness from 300 to 550 feet. The region has produced oil and gas from the Upper Smackover since the 1920s.
§ The average cost paid per acre is about $325 with average royalty of ~18% and average primary lease term of 4 years with 4-year extension.
§ SWN plans to spud its first well in Columbia County, AR later in 3Q and to drill a second well later this year. The company will drill up to 10 additional wells as they continue to test the concept in 2012.
I'd look for a different schedule than what is actually called for here. At $325/acre, that's about $150 million in leasing, not including the costs for landmen and associated services. If either of those two wells pan out with decent liquids, SWN will very likely up the planned drilling in 2012, probably into the 30-40 well range.
Do you think Triad and Pinebelt are one in the same.I know TS Dudley (SWN) took over Pinebelt's interest but do you think they aquired Triad as well. North La. on this site has also mentioned a few others that were leasing.Do you think SWN is behind it all?
I'm pretty sure that TS Dudley is fronting for SWN. In their release they mention a Claiborne Parish well and as you may know Dudley recently filed for a large unit for a lower Smackover horizontal. I've also heard rumors that they plan to drill 3 wells back to back so there may be a 3rd unit/location appearing soon. We shall see. J-W assembled a 20,000 acre block in southwest Union County and have been looking for partners. It wouldn't surprise me if they have sold to SWN. Remember that they also have an approved unit so it would be easy for SWN to drill there for one of their initial wells.
There was a question about porosity and perm in another discussion.Can you give me your take on these numbers and are they comparable to those on the Brammer well?
Not being picky but I think that is "southern Louisiana and NORTH Louisiana". Not "southern Louisiana".
How about "southern Arkansas and northern Louisiana".....