Many RR Parish leases were signed in 2005 for nominal consideration (relatively speaking). These leases had a primary term of 3 years, with an option to extend for an additional 2 years, effectively making them 5 year contracts. 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; we would have the convenience of selling a new lease for "significant" money to the highest bidder. What is the general consensus regarding these Red River Parish properties? Do you think the production company will get to them by the expiration date?
Sportsman, EnCana has stated they intend to have all their core acreage held by production by 2011. There current plans call for drilling 50 net wells in 2009 which may be equivalent to 60-70 gross wells and could hold 40000 acres. I am not sure how much core acreage EnCana has in Red River Parish or how many of their wells are targeted for RRP. It will be interesting to see where EnCana focuses their attention between now and mid-2010.