Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 26, 2018 at 11:11

Nothing has come across my desk.

Permalink Reply by Bradley McWilliams on April 26, 2018 at 11:35

Maybe we will hear more soon.  I still have connections that requires me to be a little cautious about saying much, but if I'm understanding correctly it may be a good thing.

who knows how long before my "connections" evaporate. Life in the 'patch'...

Permalink Reply by Skip Peel - Mineral Consultant on April 26, 2018 at 12:10

Ankor is the only company showing current interest in the Brown Dense and SWN is the only company with significant leasehold HBP.  I would be surprised if there were any other players beyond the possibility of some private equity.

Permalink Reply by Bradley McWilliams on April 26, 2018 at 12:36

That kind of fits the story I heard.  If you don't mind giving your thoughts, but do you think Ankor sees something others missed, or do you think they are a lower cost operator that can make it work?

Or are they just plumb crazy?

Permalink Reply by Skip Peel - Mineral Consultant on April 26, 2018 at 12:46

The LSBD explored footprint isn't large enough to attract a major, or mid-major for that matter, but if a smaller company such as Ankor could unlock the secret to proper completion designs, it would make for the kind of asset that O&G types constantly search for.  SWN would undoubtedly like to divest their acreage.  They've given up.  So the acquisition price would be heavily discounted.  And if the proper well design is vertical, the well cost would be low enough that Ankor could likely afford to handle development on their own without bringing in a bigger operating company.  Ankor could also be interested in solving the completion design and then selling to a larger company.  There is an opportunity that is available for a modest investment that could be a financial windfall if Ankor solves the puzzle.

Permalink Reply by Bradley McWilliams on April 26, 2018 at 12:59

Very sound reasoning.  Circumstances require a company that is in a "sweet spot". Large enough to put capital and engineering into it, but not a public company that has to answer to shareholders for every gamble taken.

Permalink Reply by Rock Man on April 26, 2018 at 17:57

Maybe SWN sold their position - they were marketing it at NAPE a couple of months ago

Permalink Reply by Skip Peel - Mineral Consultant on April 27, 2018 at 1:10

I'd like to think that is the case.  If so, there would be an instrument evidencing the sale in the public records of Union Parish.

Permalink Reply by Bradley McWilliams on April 27, 2018 at 1:29

SWN has their first quarter conference call this morning, maybe something will be said on that?

Probably depends on all the T's being dotted and the I's being crossed...

Permalink Reply by ddozier on April 28, 2018 at 1:22

Unless there would direct news of a sale/farmout I doubt they would even mention the LSBD they haven't said anything about it in last few calls. Its a black eye for them in the investors eyes. I hold about 220 acres in the "fairway" that was under lease to SWN. They approached me to top lease last fall with an offer that was just an insult to my intelligence, I suspected something was up. I am in unleased in their most recent unitization. Hopefully someone with some kahunas will come along and give it a go.

Permalink Reply by Bradley McWilliams on April 28, 2018 at 9:44

Playing devil's advocate here, but I think what you're telling us is proof that SWN is "sticking to their guns".  They've been saying for the last two years that they are only interested in investments that are expected to pay a certain yield.  When the LSBD is compared with the plays in the north east, it comes up woefully short.  I'm guessing the amount they offered was the most they were willing to invest in the acreage you have, regardless of insults or compliments.  Same goes for their willingness to make a go of it there.  Lots of money to be gambled on science and hunting for the sweet spot verses relative slam dunks in WV/PA.  Kind of along the same lines of not expecting someone with 200K acres in the permian to move resources to the LSBD.  Hopefully someone will move in down there that has the resources to focus on it. On the other hand, not too many companies that have the resources are wanting to chance it.  

Permalink Reply by Bradley McWilliams on April 28, 2018 at 9:46

However, I do agree fully that it's a black eye.  It's funny and sad to go back a few years and listen to the glowing reports of the LSBD before they drilled anything there.  According to the talk at the time, by now it was supposed to be Midland/Odessa moved to south Arkansas...

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page