Replies to This Discussion

Permalink Reply by BKG on May 22, 2015 at 7:28

The unit lines, both existing and proposed are a little difficult to see on the exhibits. Does this activity mean anything for sec.16 r2w twn18n. This section is north of and adjacent to the proposal....Bkg

Permalink Reply by Two Dogs, Pirate on May 22, 2015 at 9:31

Section 16 is in CV RC SUD which is an already existing unit.

Permalink Reply by BKG on May 22, 2015 at 12:17

Gotcha, thanks. So would that mean that the company holding the unit that sec.16 is in, is not allowed to drill a lateral  into sec.16 from this newly created 5 section unit? They are 2 different companies, I believe....Bkg

Permalink Reply by Two Dogs, Pirate on May 22, 2015 at 13:12

If you will take a look at the unit application that North LA posted you will see about half of Section 16 with the unit designation CV RC SUD. If you will notice the first unit map in North's post you will see that they are cancelling one unit. Units are formed all the time that never get drilled, so whoever formed the unit really doesn't matter. Leases change hands all the time also and that is just standard practice. You will never no what is going on unless you go to the court house and look for assignments of the leases. Most companies hire land service companies to buy the leases and some use different names to buy leases. I helped a fellow with the wording of a lease on the East side of Choudrant and that lease was taken in the name of Wildhorse. I think that the parent company of Wildhorse has been buying leases in their name recently. I don't remember their name but am fairly sure someone will comment with the name.

Permalink Reply by North LA on May 22, 2015 at 13:37

Memorial Resource Development fully or partially owns Wildhorse.

Permalink Reply by Two Dogs, Pirate on May 22, 2015 at 13:39

Thanks North LA.

Permalink Reply by BKG on May 22, 2015 at 14:42

Sec. 16 designated as CV RC SUD is I believe, one of a 6 section unit formed by another company other than MRD/Wildhorse.

Permalink Reply by Skip Peel - Mineral Consultant on May 22, 2015 at 14:59

Nadel & Gussman Ruston formed CV RC SUD and additional CV RC units in the Choudrant Field in March, 2014.  The application was approved as Field Order 260-X-3.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

Permalink Reply by BKG on May 22, 2015 at 15:16

Thanks fellows, maybe something will happen one day. I don't think they are building and investing in gas processing plants, wells, and pipeline construction for nothing. Kinda exciting for Lincoln parish.

Permalink Reply by Martin Howard on May 26, 2015 at 6:03

Actually, while there was common ownership and backing between MRD and Wildhorse I in the Terryville field, there is no such connection between MRD and Wildhorse II (which is the entity currently operating all of the new wells in the Tremont/Choudrant area). In fact, I'm told that they are competing for leases in certain areas. As for Sec. 16-18N-2W, that should be a Wildhorse II operated area. N&G and Wildhorse did an acreage swap in that area, and N&G controlls the sections just north of Section 16 (i.e. Sections 7-11 of 18N-2W).

Permalink Reply by North LA on May 26, 2015 at 8:08

In that case I guess i won't invest in MRD right now.

Permalink Reply by Martin Howard on May 26, 2015 at 8:18

I wouldn't avoid MRD by any means (they are a public company with a lot of their CapEx committed to drilling wells in their core Terryville position north of Ruston, which are still economic dry gas wells despite today's lower nat gas prices), but I don't think they are involved with what Wildhorse is currently doing around Choudrant (i.e. trying to "prove" that the Tremont area can produce comparable results to the Terryville wells by applying the same drilling techniques they used on the Terryville wells that MRD now owns and operates).

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