Replies to This Discussion

Permalink Reply by ALongview on May 4, 2009 at 3:49

We have a little land just South of that survey in the Hereford surveys also leased to Cabot. It seems Cabot (Elite is leasing for them) is focusing their efforts farther North and West of there at this time.

Permalink Reply by Bob on May 20, 2009 at 2:07

If that acreage in the south ever gets drilled, it probably will not be for some time. If you've got acreage down there and you are holding out for more money, you are doing yourself a disservice in my opinion. By the time any of that acreage goes HBP (if it ever does), the primary term of a lease will have run out or almost run out. If you don't lease at this time (unless the offer is just bad) for 'market' or close to it, I don't think you are doing the right thing. That's just my 2 cents.

On the other side, I think that any company still leasing for a 3 year primary term is going to regret it later.

Permalink Reply by ALongview on May 20, 2009 at 6:08

Bob, What do mean by "any company still leasing for a 3 year primary term is going to regret it later?" Do you think they will have a hard time holding it and the price for leases will increase after primary term is up? Also, how far South in your opinion is "in the South?" It is our southernmost holding in the C. Hereford survey. Petrohawk has that area in the Shale in their most recent presentation. Goodrich has it in the James Lime Trend in their latest presentation and GMX has the shale it looks like at around 200' in theirs. I am asking your opinion because when I asked about the possibility of drilling to Cabot, they said they would probably not get to it in the next five years. I can't figure out if that is just smoke or they have better areas and limited time and resources at the price of gas currently. Thanks.

Permalink Reply by leo bishop on May 20, 2009 at 13:18

I am anxious to hear his opinion also... I don't think you can get all the acreage drilled and pipelines in place with a 3 year lease in SA. Most of the Surface Owners don't have all the minerals and it takes time to get it right. You need to have a 5 year plan to get your acreage drilled. There is not much infrastructure in SA county. When you look at what Cabot has, it covers a large area. Remember that Elite and Rock Ridge are leasing for them also, they also picked the PXP leases too. Encanna is shutting down their leasing office at the end of the month. They can't find a Partner for their drilling program.

Permalink Reply by ogmladvisor on May 20, 2009 at 14:08

One only needs to step inside the SA Courthouse, and pull up all the Unit Designations filed by Cabot (and others) to see how much acreage is already being held. Thousands and thousands of acres, with new permits popping up weekly, to hold even more acreage. They (Cabot, SWN) didn't just start out here yesterday...this ball has been rolling for some time now, and doesn't show signs of stopping.

ALongview: how do you reach someone at Cabot, just call the corporate offices?

Permalink Reply by ALongview on May 20, 2009 at 15:12

We have two leases with Cabot in San Augustine. We dealt with Elite. I should have said in my post, "when I asked the landman leasing for Cabot about the possibility of getting a well in the Hereford survey, he said they probably would not get to it." The other (small piece) is already in a well unit being drilled now. The man we dealt with was David Scoggins 936-652-4091. Really nice guy and easy to deal with. Their bonuses are not that high but hey, they drill wells.

Permalink Reply by Martha McWhiney on May 20, 2009 at 17:53

Yes I agree with you about Mr. Scoggins, He is a very nice fellow to deal with. The bonus that I received last year was pretty nice. Mine is one that my siblings and I inherited from our mother since she is deceased. Ours was split up between us and each one of us got a pretty fair amount.Maybe I need to get back in touch with Mr. Scoggins again and see if there is anything else coming our way. I live in Shreveport so I'm not down there close where it's happening

Permalink Reply by Martha McWhiney on May 20, 2009 at 17:36

Are you talking about the San Augustine Court House?

Permalink Reply by ogmladvisor on May 22, 2009 at 13:38

Yes