Replies to This Discussion

Permalink Reply by Charles Shelor on May 6, 2013 at 5:06

WildHorse Resources is a relatively new operation out of Houston (Katy).  They would like to buy every production unit in Lincoln Parish.  Obviously, they won't get all of them, but they are trying ;-)  They bought a big chunk of wells from Petrohawk and Clayton Williams in mid 2010.  And Comstock in mid 2012.  These are wells that I had owner interest in, they have purchased several others.  They are aggressively drilling new wells and are doing a good job with horizontal wells in the LCV.  16 wells permitted in the last 6 months with some of them testing 16,000 - 22,000 MCF and 100 - 200 condensate per day.

Charles

Permalink Reply by ATLGator on May 6, 2013 at 7:09

How do you know they sold it to WildHorse?

Permalink Reply by Charles Shelor on May 6, 2013 at 7:35

I got a letter from each of the 3 companies that I mentioned, indicating that they had sold the production rights to the properties that they had been paying me royalties on and that WildHorse would be the new payer of those royalties.  Probably very similar to a letter that arkiegirl received from Indigo that prompted her question.  I had been contesting the owner's percentage on some properties with Petrohawk for several months, so I drove to Houston and talked with a WildHorse executive about my dispute.  I learned about WildHorse and their plans during that discussion.

Permalink Reply by ATLGator on May 6, 2013 at 7:40

Interesting...Thanks for sharing!

Permalink Reply by Karla Barham on May 7, 2013 at 0:41

Are the Wildhorse Wright 13-001, 002, 003,and 004 new wells or alt wells?  Anyone with this knowledge?

Permalink Reply by Skip Peel - Mineral Consultant on May 7, 2013 at 1:43

All recent wells spud since March.  Keep in mind that these are vertical, not horizontal wells. 

Permalink Reply by Charles Shelor on May 7, 2013 at 10:25

Dianne,

If you take a well at 10,000 mcf/day at a current price of $4.00 per mcf, you get $40,000 per day. Your orri of 0.0099999 would yield almost $400.00 per day before taxes and expenses. So 30 days of production is $12,000. if the well comes in at 16,000 mcf/day, then multiply the $12,000 by 16/10 or 1.6. This is not counting the condensate or oil that many of these wells are producing and can be another 30% to 50% of the gas income initially.

Of course every well is different, and I have not performed exact calculations, but In general it appears that production drops in half every 3 to 4 months until it reaches about 10% of the initial rate for the LCV horizontals

Permalink Reply by Diane on May 7, 2013 at 10:37

Thanks so much!  Looking forward to the new production!  I am supposedly also included in an allocation well that is being drilled. 

Permalink Reply by ATLGator on June 11, 2014 at 12:49

I'm not sure if everyone here has heard, but the parent company of WildHorse is going public. See link to info here: http://www.nasdaq.com/markets/ipos/company/memorial-resource-develo...

All of WildHorse's assets are included in the new company. After reading the S1, it doesn't look like much is going to change as far as development plans, but I thought it pertinent info for all of you Lincoln Parish folks.

Permalink Reply by Skip Peel - Mineral Consultant on June 11, 2014 at 13:08

Thanks, ATLG.  Diane, how'd that new production turn out?

Permalink Reply by obed w odom on June 13, 2014 at 4:36

There seems to be a lot of interest in this IPO. It began trading this morning under the symbol MRD. After opening at $19 per share, it is trading at $21.99 per share as of 10:20 AM CDT.

Permalink Reply by arkiegirl on June 13, 2014 at 4:14

Good, now maybe someone will answer the phone or return a call or reply to an email.....