Replies to This Discussion

Permalink Reply by Bradley McWilliams on July 14, 2016 at 14:37

Pretty interesting, somewhat surprising. I kind of got the impression the LSBD was pretty much a "been there, done that" kind of prospect. What's your thoughts?

Permalink Reply by Skip Peel - Mineral Consultant on July 14, 2016 at 14:49

Hard to make any sense of this.  Ergon is a small Monroe independent with no producing wells and a single listing in the state database for a well permit that expired.  Their proposed units are a long way from the proven Brown Dense fairway and they are requesting 1280 acre units (designed for horizontal development) with no experience in drilling horizontal wells and no seeming background that would indicate the ability to fund a horizontal well.  We'll have to wait and see if the Commissioner approves the units and then see if any wells get permitted.  If so, I would expect vertical exploration wells in an attempt to generate some science that would support further development.

I actually think that the Brown Dense will get additional exploration in the future with better commodity prices.  If a company could develop the proven area with vertical wells they might be able to make a reasonable profit. 

Permalink Reply by Bradley McWilliams on July 15, 2016 at 1:06

First off, full disclosure; I read ergon, but for some reason was thinking EOG. I guess that's why I was surprised. Might be a little different scope...
However, are they related to Ergon refining in Vicksburg? They are at least a good sized company, but I didn't think they done production. A person wonders if they don't come up with a familiar name hoping for mistaken respect. Yet my company is very small and unknown, but that doesn't mean we're crooks, just unknown. So I wish them well, albeit usung other people's money.
I can tell you that I haven't heard the BD mentioned by the folks at a major BD leaseholder we work for in months. Of course, they haven't said much of nothing in months...

Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2016 at 1:18

I have no idea what other company they may be related to.  Here is what I glean from the operator information in the LA state O&G database.  In their entire operating history under this name they have one well permit for a ~6000' vertical in the Rodessa Field, S1-23N - 16W, which expired and was never drilled.  The Rodessa is a far different rock than the Brown Dense and the Rodessa Field is a long, long way from the Monroe Field.

Organization Id	Organization Name
2023	ERGON EXPLORATION, INC.

 

Cnt

Well Serial

Well Name

Well Num

Status

Org ID

Field ID

Permit Date

Sec-Town-Rng

Parish

1

201667

LEAR

001

03

2023

7746

26-SEP-85

001-23N-16W

09

 

Org ID	Name
2023	ERGON EXPLORATION, INC.
Oper Type		Addr1	Addr2	Add Type		City, State Zip	ATTN Name	Contact Name	Phone Num	Phone Type
01		P. O. BOX 14476		01		MONROE, LA 71207-0000		TERRIE L. DARBY	(318)322-1414	OFFICE
									(318)232-5025	FAX-OFFICE
01		P. O. BOX 14476		03		MONROE, LA 71207-0000		BROCK KITCHINGHAM	(318)322-1414	OFFICE
									(318)323-5026	FAX-OFFICE
01		P. O. BOX 14476		05		MONROE, LA 71207-0000		TERRIE L. DARBY	(318)322-1414	OFFICE
									(318)323-5026	FAX-OFFICE
01		P. O. BOX 14476		06		MONROE, LA 71207-0000		GEORGE BECK	(318)322-1414	OFFICE
									(318)323-5026	FAX-OFFICE
01		P. O. BOX 4761		09		MONROE, LA 71211-0000		CHARLES D. KITCHINGHAM	(318)322-1414	OFFICE
01		P. O. BOX 14476		11		MONROE, LA 71207-0000		CHARLES D. KITCHINGHAM	(318)322-1414	OFFICE
									(318)323-5026	FAX-OFFICE

Organization Officers

Officer Name	Title
CHARLES D. KITCHINGHAM	VICE PRESIDENT
ROBERT E. PRITCHARD	VICE PRESIDENT
GEORGE W. BECK	VICE PRESIDENT

Organization Red Flags

Effective Date	End Date	Warning Status	Warning Description
01/01/1977	01/01/1977	S	FORM R-4 SUSPENDED FOR PRODUCTION AUDIT DISCREPANCIES

Permalink Reply by Bradley McWilliams on July 15, 2016 at 9:34

well, maybe it is Ergon Refining. According to their web site, there is Ergon Exploration in the Monroe Field, plus Ergon Energy Partners in the Austin Chalk. Doesn't mean a whole lot, but Ergon is a reputable and sizable company. I would think they have the ability to at least try it.
Ergon.com if you're interested.

Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2016 at 10:11

Thanks, not interested.   All I need to know is in the state database.  If the company follows through with a well permit, I'll post it.