Replies to This Discussion

Permalink Reply by adubu on February 11, 2011 at 8:06

Kaye----Does lease have 2 year option to renew? Call the landman who did the lease and inquire if unable to contact then call the Land management department at Devon they can look up your lease and maybe let you know their plans. Let me know I have lease up to north of you in the Joel White A-774 that also expires in May but not with Devon. I donot want to call who leased mine because when I leased I was not very infomed as now and found out later he was a flipper.

Permalink Reply by Kaye Fink on February 11, 2011 at 8:37

The landman no longer works there...will try the land management department @ Devon.  Will let you know.

Permalink Reply by Kaye Fink on February 14, 2011 at 11:59

Response from Devon:

 

Thank you for contacting Devon recently about renewing your oil and gas lease covering the following acreage:

 

110 acres, more or less, located in the Joel White Survey A-773 and the Lewis Watkins Survey A-808, and being more particularly described in a Deed from W.O. Keener et us to W.E. Holt, dated November 21, 1923 and recorded in Volume 121, Page 626, of the Deed Records, Shelby County, Texas.

 

Unfortunately due to the significant drop in natural gas prices over the last year and a half, Devon has decided to hold off drilling any new wells in Shelby and surrounding counties. Your lease will be allowed to expire in May.

 

Permalink Reply by ALongview on February 14, 2011 at 14:16

They are the only company not pursuing a HBP policy in the entire southern part of the Haynesville Shale(which has been very productive of late).  i just don't get it.  Some are trying to JV their acreage to get it held due to funding issues but none that I know of are flat out walking away from 30,000-40,000 acres.  They have no rigs running in TX or LA and have one outstanding permit and it is for the James Lime and they have a few billion in cash from the GOM sale???????

Permalink Reply by adubu on February 14, 2011 at 15:54

I'm sad to hear that but it may be more than low NG prices because several wells drilled with in 10 miles surroundimg the area and all marginal in the shale we may just not be in a good spot. Most of better wells more to south about 20 miles SW in the shelby-san augustine county line

Permalink Reply by ALongview on February 14, 2011 at 16:08

They said they would not be renewing in those areas either.  That is the crazy part.

Permalink Reply by DJG on February 17, 2011 at 4:58

Here's a link to the transcript from Devon's 2010 Q4 report yesterday:

 

http://seekingalpha.com/article/253329-devon-energy-s-ceo-discusses...

 

Not one peep about Haynsville/Bossier plans or activity.

 

What a difference a year makes.   With their 2009 Q4, Hayesville/Bossier plans had a prominent position in their presentations and they were still highly touting the "success" of their Kardell well IP in San Augustine and their development plans for their Greater Carthage and Southern Region acreage in East Texas.

Permalink Reply by ALongview on February 17, 2011 at 5:56

I just hope Chesapeake, and Crimson show that the Haynesville/Bossier is productive in Sabine County with the Bengal, and Horton.  I feel that if they do then someone will come in and pick up the North County acreage at some point.  Southwestern stated in their last presentation that the 10000+ acres they have at the Shelby/San Augustine/Sabine County lines is all but a done deal and a sale is imminent.  I suspect it is Exxon/XTO as they have the majority of the area already.

Permalink Reply by Mike on March 2, 2011 at 12:07

Today I have heard directly from Devon. They will not HBP their holdings in the southern part of the Texas play and will allow the leases to expire. The person I spoke to did say they will monitor gas prices, but oil is the focus.

Same story others have gotten.

Permalink Reply by ALongview on March 2, 2011 at 13:17

They told us essentially the same thing.  They are really the only company not trying to HBP the acreage they have in the southern part of the play to at least flip it at a later date a la SWN.  Crimson's Tiger prospect which includes the Bengal 1H is  roughly 1 mile from our acreage so I hope someone is planning on picking it up eventually.  See attached map from Crimson's pipeline agreement with Tenaska.

Attachments:

• tiger map.doc, 106 KB

Permalink Reply by JE Palmer on April 5, 2011 at 13:14

We signed with Devon for minerals in San Augustine, TX,  just found out they sold it to Chesapeake. You might want to check with them to if they still hold the minerals.  We were never notified of this, just happened when my father contacted the Landman to ask some questions about when and if they were going to drill. Our lease expires in Oct.2011

Permalink Reply by Kaye Fink on April 5, 2011 at 13:35

Check with Chesapeake or Devon? 

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