Replies to This Discussion

Permalink Reply by Les Bamburg on May 29, 2009 at 18:08

RB, here are a few points or observations regarding the presentation:

Page 10 - Map is isopach showing contours for original gas in place (Bcf/section). Red River Parish looks good as all areas seem to have at least 200 Bcf/section OGIP.

Page 11 - Log at bottom shows the Mid-Bossier Shale can have similar potential as the Haynesville Shale. EnCana indicated they control a major portion of the Mid-Bossier Shale play as the thicker parts are located within EnCana's core area.

Page 12 - Well drill & complete costs are coming down and initial flow rates are increasing.

Page 14 - Colbert Well is completed in the Mid-Bossier Shale and is performing well despite producing from only 3 frac stages.

EnCana plans to increase the drilling rig count to 12-15 by the end of 2009.

http://www.encana.com/investors/presentationsevents/

Permalink Reply by sportsman on June 11, 2009 at 3:41

What is the general consensus regarding leases that will expire in approximately 12 months if they are not unitized? As of today, there are many sections of land in Red River Parish that have not been drilled. I noticed in your comment that the projected rig count for Encana could be 12-15 by the end of 2009. As most are aware, many Red River Parish leases were signed in 2005, giving the production company a primary term of 3 years, with an option to extend for 2 more years, effectively making the lease a five year contract. I received $37.50 per acre for each of the yearly extensions. In my opinion, many landowners would benefit if their land is not unitized by next summer; the leases would expire and we would have the convenience of selling a new lease to the highest bidder.