Replies to This Discussion

Permalink Reply by ken hatcher on March 22, 2011 at 8:39

So, what are your thoughts?

Permalink Reply by ALongview on March 22, 2011 at 9:07

Ken, I think they will learn from that one and probably improve upon the result.  Unfortunately they are going to finish and complete the wells they are currently working in San Augustine and that looks to be the extent of their capital outlay in the Haynesville for 2011.  We will likely have to wait til 2012 to see them back in Sabine County as they are shifting available funds to the Eagle Ford and other oily plays where they have acreage.  They will be selective on retaining acreage in the area and keep concentrated positions where they can be the operator.  They mentioned it is difficult in Texas to put together a unit with so many diluted shares of mineral interests.

They didn't at all make it sound like they were giving up on the area, just that they can't spend that kind of money to drill and complete wells unless they produce more gas. 

We have three more Chesapeake wells in Sabine to clear up the picture a bit but there will be a lot of available acreage in the County that will be valuable again once the price of gas rises a bit. 

Crimson stated that to put more capital to work in the area they need $5 plus gas.  I think that we will get there soon.  In the meantime, we wonder how we could be stuck in between to great areas of development(San Augustine & Sabine Parish) with not much to show for it, and we wait for the answer to play itself out.  What do you think?

Permalink Reply by ken hatcher on March 22, 2011 at 12:33

I'm not exactly sure what the next plateau is for natural gas but it is going up and soon. I have no land interest in Sabine County but if I did I would remain optimistic. Your right, it is just a bad set of circumstances to get whipsawed on the end. Now the lobbyist have a progran that is saying Natural Gas is only minimaly cleaner than coal. A huge battle looming there.