Replies to This Discussion

Permalink Reply by obed w odom on July 25, 2012 at 10:33

North LA,

These look like the same units that Paul Peterson said earlier were being formed by Cabot. Could he have meant SWN?

Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2012 at 10:43

They are the same.  A unit order from the LOC allows the applicant to operate or to designate the operator of their unit.  Considering Cabot's recent announcement that they would observe developments by others in the LSBD before committing any further capital it would be logical that the "others" would be SWN.  A unit order is good indefinitely and does not require wells to be drilled in any time frame.  The lease term expirations within the unit boundaries are the ultimate driver of development timing. 

Permalink Reply by obed w odom on July 27, 2012 at 7:34

NL,

I think the LSMK RA SUB unit shown on the SWN map is the Cabot unit in S19/18-22N-1W, and that SWN is showing all units or proposed units, not just SWN units. If that is the case, then the new proposed units shown on the map look like the Cabot units. In fact, do we know that these proposed units are not still Cabot units? Your link above seems to indicate that Cabot was still claiming them as of July 24, 2012. Maybe they will later designate SWN as the operator.

Permalink Reply by North LA on July 27, 2012 at 8:04

You're right obed. I'll delete my post so there isn't any confusion.

Permalink Reply by Sarah Randolph on July 27, 2012 at 7:53

I am confused.  Is SWN applying to create units for sections 22 thru 27 in T22 R2W?  Did SWN send out a letter?

Permalink Reply by North LA on July 27, 2012 at 8:05

No Sarah. I was mistaken. It appears that Cabot and SWN are proposing these units together.

Permalink Reply by Sarah Randolph on July 27, 2012 at 8:24

OK, thanks.  The map attached to the unit application looked like sections 10 thru 15 again and I didn't see sections 22 thru 27 included, except on the separate plat map. 

Permalink Reply by Doug Boone on July 25, 2012 at 11:16

Interesting the increase in royalty offer. Was it SW that made that offer?

Permalink Reply by North LA on July 25, 2012 at 11:36

Yes it was SWN and the offer was ac

Permalink Reply by GoshDarn on July 27, 2012 at 8:05

Norte La.:

Forgive my incompetence -- since I don't know that much about the particulars of your area, nor have I spent much time tracking the intel that far east.

Was that 22% royalty a "first offer," or have you been haggling for awhile?

 

 

Permalink Reply by North LA on July 27, 2012 at 8:11

It's not the first offer. I haven't been haggling. I just haven't signed yet. I've been offered 4-5 times but haven't made a counter yet. Not that it matters that much but I typed the offer wrong. It was actually 22.5% royalty and was offered 6/19/2012.

Permalink Reply by GoshDarn on July 27, 2012 at 8:43

Norte:

Sounds to me like you have 'em treed.

And per what little I know -- I mean, if it was me, I know what I'd counter with.

Congrats.

GD