Replies to This Discussion

Permalink Reply by jffree1 on July 6, 2010 at 13:16

It just barely made it into Sabine Co. didn't it? That's a good question but do you think the paperwork has been filed yet? I think the deal is probably closed already isn't it?

Permalink Reply by jffree1 on July 6, 2010 at 14:40

ALongview, here is the SWN press release:

Houston, Texas – June 16, 2010... Southwestern Energy Company (NYSE: SWN) announced today that it has entered into a definitive purchase and sales agreement with EXCO Resources, Inc. (NYSE: XCO) for the sale of certain oil and gas leases, wells and gathering equipment held by the company in East Texas for approximately $355 million, subject to customary purchase price adjustments, effective April 1, 2010. The sale includes only the producing rights to the Haynesville and Middle Bossier Shale intervals in approximately 20,063 net acres. The company’s net production from the Haynesville and Middle Bossier Shale intervals in this acreage was approximately 10 MMcf equivalent per day as of April 1, 2010 and proved net reserves were approximately 31 Bcf equivalent as of year-end 2009. The company has retained the drilling and producing rights covering all other depths in the acreage, including the company’s current James Lime and Pettet drilling programs. The transaction is expected to close in the second quarter of 2010.

The company will continue to have an active drilling program in East Texas, which includes approximately 10,500 additional net acres under which it believes that the Haynesville and Middle Bossier Shale intervals are prospective. The company is currently drilling its second Haynesville/Bossier well in this additional acreage and expects initial production to occur in the fourth quarter upon the completion of pipeline infrastructure.

"The sale includes only the producing rights to the Haynesville and Middle Bossier Shale intervals in approximately 20,063 net acres"

I think this is the Common Resources JV acreage in San Augustine, Shelby and Nacogdoches. The Sabine County acreage is most likely not part of this package, IMO.

Permalink Reply by ALongview on July 6, 2010 at 14:54

I think you are right. They must like what they see to permit another Haynesville well on the remaining acreage. They also just leased and recorded a bit more acreage in NW Sabine in the last 2-3 weeks which is also a good sign. It seems infrastructure is a bigger issue to the development of Sabine County than anything else.

Permalink Reply by jffree1 on July 6, 2010 at 15:04

If they are planning to bring on production by 4Q, they should be drilling now... 'specially if it takes 2 months to complete the well after it's drilled.

Permalink Reply by DJG on July 17, 2010 at 18:44

East Texas Drilling Report - 7/18/2010:

Southwestern Energy will drill the C. Crest Well No. 1H to 12,700 feet 14.4 miles southeast of Shelbyville in the Carthage (Haynesville Shale) Field. This well is in the J. Buckley Survey, A-504.

Permalink Reply by Frank Coday on August 6, 2010 at 1:53

Notice Southwestern just permitted 2 directional wells located near ends of the Crest C-1H and Harris B-1H laterals on 40 ac. units with directionals to the north. Both platts show tracts to the north and none to the south toward the horizonal pads. Guess they will amend later for laterals and unitization??? Your thoughts pls.

Permalink Reply by jffree1 on August 6, 2010 at 3:52

Frank, I try not to stress too much over what these guys are going to do in the future with any particular well. They may drill directionals to look at the economics of that profile next to a horizontal profile. And it could be just to hold some acreage with a less expensive well. Lots of experiments going on right now.

Permalink Reply by Frank Coday on August 6, 2010 at 4:23

Thanks jffreel, forgot about HBP. Guess we will see a unit expansion from 40 to 600 or 700 ac. if this is the case. One thing I've learned, you can't predict this business!!!

Permalink Reply by jffree1 on August 6, 2010 at 17:48

That is a fact! It will all be clear as mud shortly, LOL!