San Augustine, TX

Last I heard about that area was when Farmbrad signed with Encana Oct. 5th. If anyone is leasing anywhere they are being real quiet about it.

Oct. 5 was when he shared the news. Don't know what day he signed.

Thanks, If anyone hears of any activity or well results please let me know.

Some good info on development in SA county. Anyone have interests in these areas?
San Augustine County

In a lease 6 miles northwest of San Augustine, in the Angie (James Lime) Field, the Jacquelyn Bright Gas Unit Well No. 2H will be drilled by Cabot Oil & Gas. This well will hit 9,000 feet in the Holman, S Survey, A-135.


Cabot Oil & Gas will drill the John Oglesbee, Jr. Well No. 2H in the Angie (James Lime) Field. This well is 4.3 miles northwest of San Augustine in the Cartwright, T Survey, A-85 to 8,500 feet.

Another good completion for Cabot in SA/Shelby Co's:
San Augustine County

The Timberstar Well No. 3 is 11.8 miles southeast of Center in the Angie Field. Cabot Oil & Gas Corp. has completed the well to 11,955 feet. On a 64/64-inch choke it potentialed 9.363 million cf of gas per day. Production is in the James Lime formation.

Sounds like a really good well to me.

Good well. Seems the northern part of SA County is really good. Now we just need a good well somewhere south of 103.

JWC or anyone else that wants to jump in, What are the expectations of the southern part of the county? 1000's of acres are under lease by some big time companies according to the county records going back to 2005 and up to the present. Encana, Devon, Cabot all have large positions but nothing on the books wells except one way to the SE of Broaddus that was discussed earlier.
on another note a landman for Cabot told us last week that they weren't planning on doing anything on 5 yr leases they hold N of 103????? Why lease up 1000's of acres and then state that you didn't really have good "early test info" on the area. My searches don't show any wells being drilled, so are they talking about some other testing that can't be done prior to leasing? Isn't there some sort of research done prior to obtaining all this acreage that would have given tham an idea as to how it would produce prior to spending the millions of $ it took to lease. This is just a few miles south of the town so I don't understand how it could be out of the realm of possibilty that this area would contain gas considering what Cabot has been doing W and NW of town. Is this just a tactic to keep lease bonuses low or is this standard practice?

I talked to a guy with Cabot a few weeks back. He told me our land was just a little bit south of where they were leasing. He also told me that if I had been there a couple of weeks earlier they possibly would have been interested. I think the area just south of 103 will pick up at some point. I just don't have any idea when. Like I said earlier land north, east, south and west of me has leased. I certainly don't look for anything to break before late January or early February.

ALongview, considering that a 640 ac unit would cost almost $3-4 million just to lease even at the lower rate of $5-6,000 per ac. I don't see them leasing just to hold it at that rate. Maybe I'm wrong.

You all will have to cut and paste this pdf as I can't get a direct link. It involves Eagle oil and gas selling its resources in SA and Sabine Counties. The map is interesting as It shows a haynesville penetration in Sabine county and many, including penetrations farther south than I have heard, in SA county. Also the details read that in the highlighted area on the map have an approximate shale thickness of 200'. http://www.energyspectrum.com/admin/data/upload/Asset_Summary_and_CA.pdf

Do you think it's a good deal or are they trying to unload something on some 'investors'?

Can anyone tell with that small map in the PDF if Z Redmond is included in the Eagle Stone Acreage. Our family's land has Eagle Oil and Gas as our gas guys and nothing has come of it.

Intrepid, I highly doubt they are unloading anything on to some investors and feel like it will be better capitalized o&g co's that would likely buy it. If you go to their website and look at the closed transactions you will see names like Encana, Exco, St Mary , Anadarko, etc. who have utilized this broker to do deals on large acreage postions in many areas around the country. I found the site late and couldn't access the data section to see about the 200' of shale. If anyone would care to comment on that part of it I would certainly be interested to hear.

From that map does it appear there are several Haynesville penetrations south of 103?

JWC, That is what it looks like.

When they penetrate a zone what do they do? What does that mean.

East Texas Drilling Report 11-02-08

San Augustine County

The Timberstar Well No. 3 is 11.8 miles southeast of Center in the Angie Field. Cabot Oil & Gas Corp. has completed the well to 11,955 feet. On a 64/64-inch choke it potentialed 9.363 million cf of gas per day. Production is in the James Lime formation.

We need a few more of these in San Augustine County jffree1. Good well data is picking up.

Lessor, or anyone else that might know: any updates on the deep test taking place in SA County?

I have 150 acres in San Augustine County, I have been approched about leasing the property, but am unsure about this process. Just seeking some advice. Property around me has been leased. I have been told that the amounts may go up in 2009 from the 5000.00 an acre that have been offered. I have also been told that due to the economy, we may not see high prices again. How do you determine what the best price would be for your property?

If you guys don't look at the East Texas page regularly you might want to go read the article about Cabots budget for 2008/2009. It had some very interesting opinions from Cabot re: Haynesville/Bossier formations and stated that they will spend around 600 million (90% of budget) in '09 in East Texas and in the Marcellus Shale.

That article on "East Texas" is mostly about Cabot's budget. There have been several posts just lately that stemmed from Cabot's latest conference call. There should be a transcript of the call available soon, if it's not already.
In one of those posts it was stated that Cabot believe's that while the Haynesville may thin down the further west you go, the Bossier is upwards of 1000' thick in some areas and loaded with gas. In their opinion, it makes no difference what you call it, it is all the same formation and the gas is there and they are going after it.

Link to page 8 of Cabot's 3rd Qtr. Conf. Call:

http://seekingalpha.com/article/103038-cabot-oil-amp-gas-corp-q3-2008-earnings-call-transcript?source=trans_sb_previous&page=8

Wonder how far south into San Augustine they are looking?

I would like to know if anyone has heard anything from Cabot or a representative of Cabot if they plan on drilling any of the acreage they have leased S of hwy 21?

smithsee, Seek legal counsel. Look for someone who knows oil and gas law. Do not pay a % of bonus or royalty for legal advice. Hourly fee only. And don't sign a standard lease with anyone before you get legal advice.

Whatever you have to pay an attorney for a good lease will be worth every penny down the road.

I've posted some info on Cabot in the Shelby County group. Here is a qoute from an article which includes info on the third quarter conference call and a link to more Cabot info.

>>A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), pass code 66519033. The replay will be available through Saturday, November 1, 2008. The latest financial guidance, including the Company's hedge positions, along with a replay of the web cast, which will be archived for one year, are available in the investor relations section of the Company's website at http://www.cabotog.com.;

Thanks Intrepid, I'll blame it on "Sr. Moment" but I couldn't find that post or even remember where I'd seen it, LOL.

jffree, Cabot has pretty deep ties in both Shelby and San Augustine counties and their wells seem to be doing pretty good.

Yes, great wells. I wish they'd show some interest in Sabine.

From what I can gather, there will be quite a bit of activity in Sabine County in the next mnonth or two.

intrepid,
Are you watching the Katherine Von Goetz wells in the Kimbro Survey in SA county? #1 had initial production of 7mcf. We should know something about #3 about now. #4 was also recently permitted...all appear to be very close to each other. If you find out the production on #3 will you please post it. Thanks

ALongview, Or anyone who knows
Which OG's have the large acreage in Sabine County. Which OG is controlling the leases north and north west in Sabine County and down the western Sabine county line.

Cheerleader, Devon, Encana, and EOG hold positions in Sabine County according to county records. There are others but these hold pretty good size leases. EOG holds acreage closer to the county line with San Augustine in the Northern part of the county.

ALongview,
Thanks for the response. Do you have any opinions on why the acreage is under lease but no drilling permits to speak of in Sabine County? The concentration appears to be directly below the NW SA county line and across the immediate northern part of the SA county line with Cabot wells being drilled further south of the SA county line. THe OG's are definitely working their way from west to the east and directly below the SA county line.

CL, I think that things will start happening in Sabine County fairly soon. A good amount of acreage has been leased up all across the Northern part of both counties. I can only assume this is because they have better data on these areas. If and when thay get good results farther south of these areas they will start drilling more.

Just because a company leased some minerals doesn't mean it is ready to drill. Many things have to take place before a rig can be moved in, including leasing offset acreage, surveying, and having attorneys render title opinions...just to name a few. In a new lease play like Sabine County, I would say drilling the first well within one year of the first lease taken by a company would be a daunting task. So why is Cabot able to drill so many wells in SA County? They have been here for two years longer than everyone else.

And have some leases which are older than that.

ogmladvisor, so you think we may not even see a new permit in Sabine until when? late summer '09?

This is from the East Texas Drilling Report in the Tyler Paper. More good news for Shelby and San Augustine Counties:
San Augustine County

In a lease 6 miles northwest of San Augustine, in the Angie (James Lime) Field, the Jacquelyn Bright Gas Unit Well No. 2H will be drilled by Cabot Oil & Gas. This well will hit 9,000 feet in the Holman, S Survey, A-135.


Cabot Oil & Gas will drill the John Oglesbee, Jr. Well No. 2H in the Angie (James Lime) Field. This well is 4.3 miles northwest of San Augustine in the Cartwright, T Survey, A-85 to 8,500 feet.


Shelby County

XTO Energy will drill the Hearnsberger Gas Unit Well No. 1 to 14,000 feet in a wildcat field. This well is 12.8 miles southwest of Center in the Hill, W Survey, A-282. It may be drilled in the Stockman (Cotton Valley) Field, the Stockman, South (Travis Peak) Field or the Stockman, South (Pettit) Field.


The Wheeler Well No. 6 and the Wheeler Well No. 8 will be drilled in the Stockman (Travis Peak) Field by Encore Operating. The No. 6 is 8.9 miles southeast of Center. The No. 8 is 9.1 miles southeast of Center. Both wells will hit 9,000 feet in the Hooper, R Survey, A-356 and may also be drilled in the Stockman (Pettit-Lower) Field.


Samson Lone Star will drill the Hugo Well No. 1H in the Huxley (Fredricksburg) Field. Location is one mile south of Huxley in the Haley, J Survey, A-291. Depth will be 4,000 feet.

Here are two new completed wells:
San Augustine County

The Timberstar Well No. 3 is 11.8 miles southeast of Center in the Angie Field. Cabot Oil & Gas Corp. has completed the well to 11,955 feet. On a 64/64-inch choke it potentialed 9.363 million cf of gas per day. Production is in the James Lime formation.


Shelby County

EnCore Operating completed the Wheeler Well No. 3 in the Stockman Field to 8,800 feet. Location is 9.5 miles southeast of Center. On a 64/64-inch choke it potentialed 1.113 million cf of gas per day. Production is in the Travis Peak formation.

Has anyone heard of activity with BP in San Augustine County?

I don't know much about Sabine County activity, I am only stating general knowledge about a play. As for all the well permits Intrepid is quoting: a permitted well might never be drilled, it has only been permitted to drill. Hopefully, they will all be drilled, but until the rig is on site, nothing is getting drilled. To assume a well is imminent based on a permit application is short sighted.

ogmladvisor, good point you made about permitted wells vs. completed wells. Can you find how many have been permitted but not started in the last 12-18 months in Shelby or San Augustine county. What is a reasonable time frame from permit to start to completion? Overall, in Texas, is there data on how many wells are permitted but never drilled?
Thanks for your perspective.

I don't have that kind of information, not sure it would do us any good if I did. Since the reasons for a permitted well not getting drilled are various, it would be hard to compare one situation to another. More often than not, I would say the wells get drilled once permitted - I was just pointing out the difference between a well that has been permitted to drill, and a well that has actually spud. As mentioned before, let's hope they all get drilled!

Thanks, ogmladvisor. That makes sense. Of the wells I've watched it's around a year from the date permitted to the time I've seen the completion reprted in the East Texas Drilling reports. Funny thing is, I still have not found any output info on these wells reported to the TRRC.

Hello, Shelly! Just some activity as posted already. Mostly Cabot in SA-Shelby but some others also drilling wells. Good to see you still checking in.

Submitted 10/23/2008 Approved 10/28/2008 673779 405-30246 COMMON RESOURCES L.L.C. (169727) RED RIVER 164 1 06 SAN AUGUSTINE Vertical New Drill - 15000 Approved

Submitted 11/05/2008 674478 405-30247 ENERQUEST CORPORATION (252059) JARVIS 1 06 SAN AUGUSTINE Vertical New Drill - 11500 Drilling Permit

Submitted 11/06/2008 674559 SOUTHWESTERN ENERGY PROD. CO. (806668) TIMBERSTAR-MILLS B 6H 06 SAN AUGUSTINE Horizontal New Drill - 7800 Mapping

Submitted 11/10/2008 674733 XTO ENERGY INC. (945936) TURPIN GAS UNIT 1H 06 SAN AUGUSTINE Horizontal New Drill - 15500 Mapping

Submitted 08/29/2008 Approved 09/17/2008 670198 405-30237 FOSSIL RESOURCES, INC. (278844) COWBOYS GAS UNIT 1 06 SAN AUGUSTINE Vertical New Drill - 14000 Approved

1 FOSSIL RESOURCES 14000' COWBOYS GAS UNIT #1 DW PATRIOT DRILLING/M 5 (Spudded) 10/04/08 35 (days) DRLG AHEAD 10543

Submitted 09/22/2008 Approved 10/04/2008 671581 405-30240 CABOT OIL & GAS CORPORATION (121700) JOHN OGLESBEE, JR. 1H 06 SAN AUGUSTINE Horizontal New Drill - 9000 Approved

CABOT O & G/HOUSTON 9000' JOHN OGLESBEE JR #1 H DW HELMERICH & PAYNE/T 244 11/09/08 MOVING ON