Replies to This Discussion

Permalink Reply by Chris on February 9, 2010 at 8:28

It doesn't work like that. Often multiple companies will hold leases in a unit. They will partner up and sign an agreement sharing the costs and profit. The companies usually do not do the drilling they outsource that to specialized firms.

Permalink Reply by ALongview on February 9, 2010 at 9:32

Chris, This lease is by one owner to one company(Crimson). The permit is not pooled yet it was filed by Eagle. I guess my question should be, why would someone who owns a lease that does not need to be pooled have another company file for the permit? What would the advantages/disadvantages be in that scenerio? I attached the lease and the permit above.

Permalink Reply by jffree1 on February 9, 2010 at 10:26

Are you positive there are not multiple (undivided interest) owners to the same acreage?

Permalink Reply by ALongview on February 9, 2010 at 10:50

Eagle does own quite a number of leases in the survey. That would make sense if Eagle owned more undivided interest in the same tract......assuming you only have to pool different tracts and not different interests. Is that the way it works? It would seem that some sort of documentation would need to be filed. Maybe the undivided interest that Crimson holds has been assigned and not yet filed? They sure don't make it easy to figure out who is doing what, where!

Permalink Reply by Chris on February 16, 2010 at 10:44

Assignments of interest among companies are often not filed, or filed later after the well is already producing.

Permalink Reply by 5thGenTexan on February 9, 2010 at 11:56

Played my first round of golf there......

Glad to see drilling in that area. Have a few net mineral acres in that survey also. Mine is leased to Eagle but not close enough to Fairway to be in that pool.

Permalink Reply by Wilma Watts on February 11, 2010 at 10:28

Not sure Crimson has a bunch of experience out here operating either, other than watching Devon drill their Kardell well.

Can anyone fill me in on Eagle? Who are these folks?

Where is the nest, er, I mean offices?

Permalink Reply by 5thGenTexan on February 11, 2010 at 10:50

http://www.eagleog.com/contact.html

Dallas Office
5950 Berkshire, Suite 1100
Dallas, TX 75225-5854
214-369-1545
Fax 214-369-2217


Wichita Falls Office
2525 Kell Blvd, Suite 510
Wichita Falls, TX 76308-1061
940-723-7322
Fax 940-723-1478

Midland Office
500 W Texas Ave, Suite 1225
Midland, TX 79701
432-687-3784
Fax 432-687-5163

Permalink Reply by jffree1 on February 11, 2010 at 14:48

I had about the same reaction, Wilma. They each have a small number (3-5) of Barnett horizontals but I don't have any idea what they may have accomplished outside of Texas.

Permalink Reply by Wilma Watts on February 12, 2010 at 1:57

You are probably correct JR. Here are the ratings and stock target price for CXPO, if you put any wieght on analyst work these days after all the scandals:

Barclay’s – Overweight / $8.00, Morgan Keegan – Outperform (doesn’t give target), Pritchard – Buy / $5.50, Rodman – Market Outperform / $7.00, Stifel Nicolas – Buy / $5.50

I think the company is a good one, just would like to see them get down the road a bit here. Exciting times for the Haynesville, operators and owners.

Permalink Reply by jffree1 on February 17, 2010 at 11:03

Fairway Farms #1H (405-30325) was finally approved. It is 3.1 miles from the Sabine County line as the crow flies.

Attachments:

• Fairway Farms 1H.jpg, 79 KB