San Augustine, TX

No activity I could find for Shelby-San Augustine counties in the East Texas Drilling reports this week. Anyone else find anything new?

WOW sounds like they're cheating you...

Please refer to the following link:

http://www.cabotog.com/pdf/111308_pres.pdf

This might help put things in perspective. Cabot has a completed Haynesville Test well near the Katherine Von Goetz #4. Check out the Bank of America presentation on Cabot's website. Check out the County LIne information. Check out the 2009 budget for the Gulf Coast portion. We now have bona fide Haynesville well in San Augustine County. Information is not even near sketchy at this point, but it's coming. BE PATIENT. We should hear something very soon. From what I have gathered, it is not bad news, not at all. It is the end of the year. Yearly leasing budgets are almost depleted if not already. They (any company) want to sign you for peanuts. Things have temporarily changed economically , but the success of this Haynesville well will equalize or undo that. Watch what happens after the announcement of this well.

I can't wait to hear the results. What do you think the odds are of this helping prospective leasing further South in the County?

Lessor:

I have checked the RRC website, and there is no such well as the Katherine Von Goetz #4 as you stated below, maybe you got bad information from someone? Can you elaborate, or tell me where I can find this Haynesville well location?

That is a Cabot mistake on this presentation. It is the No. 3, NOT the No. 4. It is a 16,000 vertical. The API No. is 405-30231. I cannot elaborate any further as it may compromise my interest.

There is another Haynesville test located in the southern part of the county, but I do not have any info on that one. At this juncture we at least have it verified in the northern part of the county. Someone needs to get after info on this other southern well. If I find anything I will pass it along.

Lessor:

Since you are local to the area, have you seen any other rigs in SA County other than Cabot's?

Could someone give me some insight abou this well. permitted about 10 years ago by Marathon to 17000'. Cotton Valley Lime target. Stokes Well #1x as a horizontal sidetrack? J Simms abstract #247. API # 405-30176. It says that it is temporarily abandoned but on schedule. How is that possible from 10 years ago? Also if the Cotton Valley Lime was the target of this well does that verify that it is indeed in SA County? Any help to understand this would be appreciated.

I do not know of any other rigs in the county as I am not local to the area; however, I do have information from other sources on the ground there. All that being said, if I lived there, I would look for standing rigs, but that is not too practical when the pines are as tall as the rigs. So I understand the problem. Other than that, you have to go on local chatter, which is, well strictly that with alot of BS thrown in as well. Then you look at these websites which are fairly impressive, but are more geared toward investors than landowners. You end up taking a little bit from all sources and letting your gut tell you what is actually happening. I hope you understand what I am saying here. There is no perfect science to the "Oil Bidness". It is supply and demand.

You are on the best site that I know of. We the actual people are the information center. I have my hand on the industry because of my experience. You are there and maybe together we can string it together, if you know what I mean. My only problem is that I cannot watch all of this go down on a daily basis. My attention to this is limited at this time, but I am watching.

Lessor, what light can you shed on Cabot's hedge position as detailed in the Hedge Summary? Do you feel it's beneficial to the Company? Royalty Owners? Any info appreciated.

I know leasing has stopped until next year but did anyone in the A Hotchkiss or Z Redmond survey get their land leased?

I didn't personally lease anything in either abstract but Devon leased some in the summer in A Hotchkiss and in Z. Redmond. Also, Eagle Oil and Gas leased in Z. Redmond. I believe this acreage was part of what Eagle was tryng to sell at auction not too long ago.

Our family has land in Z Redomond but has had no news from EO&G at all since.. I've sent an email to EO&G for a status of what they are doing but it was ignored..

ogmladvisor:

Fossil Rsources is in JJ Hennis A-139 permitted vertical to 14000, drilling 10,880 as of 11/14.

Thanks for the update. Maybe after the first of the year they will pick up some more land in the Z Redmond and A Hotchkiss surveys.

Here's my latest grapevine news (which came from a landman in Hemphill, and I promised not to say who):

Devon is finishing up all leasing for the 2008 budget. When the budget funds for 2009 leasing are released, they will begin a new round of leasing in Sabine, San Augustine and Shelby Counties.
EOG is also at the end of 2008 budget looking toward 2009. More active in San Augustine than Sabine. Doesn't look like they are leaving the area anytime soon.
Crimson is still in Sabine (don't know about SA) but are in reduction mode. Have let go of some office space.

No word yet on what offers will be like in '09. EOG has already dropped theirs to 2500.00/ac. in SA Co.. Don't know if Devon will follow suit or maintain their 5K of '08.

IMO, yes the bonus is imporant. But, getting a good lease with terms that will pay additional for roads, well pads, pipeline, etc..., good (25%) royalty (low or no cost) with a company who intends to drill and produce is MORE important. JF

Thanks again jffree! This is so true about the importance of good terms. The terms can affect the next 20 years and you may only get one chance at it.

Jffree do you happen to know the API number for the Fossil Resources well in the J. J. Hennis? Where did you find the 10,880' number as far as their current depth? Any info is greatly appreciated. And you are SO right about terms. Right on the money. It's now or never.

Lessor,

405-30237 FOSSIL RESOURCES, INC. (278844) COWBOYS GAS UNIT

A friend let me look at his rig locator. He's a hotshot operator. Depth info and drilling days lets vendors know about how long a rig may remain at any particular location but not all well operators give out that info. It just happens that this one did. And, if/when I do see something of this nature it's not always timely...sometimes (usually) it's already weeks or months out of date. Luckily, my timing was good, in this instance.

Thanks for the update jffree1. Good information. We appreciate you.

Double dittos. Absolutely.

Is there any seismis work going on in the area between 7 and 103 in San Augustine County? I had heard there was but am unble to find any permits on file?

yes seismigraph crews are working out 21 west in the Denning area.

Does anyone know about any activity in the E.Quirk Survey north of San Augustine on Highway 147?

Info on a new completion in SA County from the East Texas Drilling report: San Augustine County
The BP Well No. 12 is located 16.5 miles southeast of Broaddus in the Brookeland Field. KT Operating completed the well to 15,274 feet. On a 48/64-inch choke it potentialed 784,000 cubic feet of gas. Production is in the Austin Chalk, 8800 formation.

smithsee, we are leased in E Quirk to St. Mary's. They have permitted and drilled a few there in the last year or so. All shallow though and nothing really recent.

The BP Well NO. 12 located 16.5 miles southeast of Broaddus. Would that be considered a decent well? If not what is considered a decent well?

Last year, well before the run up of NG prices, they didn't consider it a "Good" well unless it was producing near or over a million cfd. After this summer, who knows? I'd say that for an AC well, the volume is respectable. The trouble with that formation is the steep and swift decline.

Thanks jffree1. I wasn't sure where that well was.

Looks like it's in the water.

Lots of seismic north of the north end of FM 354. Cut into my gate chain and put in their own lock. We got no notice. Do they owe us notice, we are leased to South Western.

etx44,
Do you mean 353 instead of 354? If you mean 353 is this the north end of 353 up by Blandlake?
If you mean 354 could you be more specific where the north end of 354 is located.
Do you think it was Southwestern who cut your lock?
What OG's are doing seismic testing in north San Augustine County?

FM 354 ends 6 miles north of Denning in NW San Augustine county. The seismic crew cut my chain and put in their own lock, my lock is ok. It can not be South Western Energy as the survey grid covers many square miles.
Do they by law need to give notice ?

etx44,
Look on this website under "GEOLOGICALLY SPEAKING"
The topic is "SEISMIC QUESTION". "Alongview" is asking a question about Seismic. He received a letter. Maybe he will share the procedure with you. Lease or not...breaking and entering is not acceptable. Particularly if they are locking you out of your own property. What is the reason for them to change the lock when they could receive access from you if they have the right to be present on your land? Look at your lease and see if they have exploration rights including seismic which they probably do. Call Southwestern and ask them if they sent someone onto your land.
I don't understand how you know it is NOT Southwestern.
Good luck!

A mineral owner (including undivided interest owners) may sign a seismic permit allowing a company to conduct seismic surveys on their land, eventhough the mineral owner may not own any surface. A surface owner may not prevent a mineral owner from "developing their mineral estate".
Some seismic companys do these seismic surveys either for an oil company or sometimes as a speculative survey or "shoot". The seismic company will then sell the information to the companies piecemeal or also as a whole. Also, the lock is put in the existing link of locks and chain in order to allow the seismic crew access in and across the property. Owners sometimes construe this to mean they are being "locked out", which is not usually the case, just mis-communication.

Lessor, Are you saying that mineral owners as well as surface owners(if they are different) both get paid if siesmic crew wants to shoot?

The person who signs the permit would be the one receiving payment. The surface owner may have to negotiate surface damages eventhough he did not sign a seismic permit; or if he did sign, he may collect on both.

Lessor, Did you find out aything new about JJ Hennis Survey?

Hey Jffree, no I haven't. Been out of the loop with Thanksgiving and all. Do you know of anything new?

Lessor,
Do all of the mineral rights owners have to give permission when the mineral rights are undivided, for a seismic company to obtain a seismic permit? OR is one mineral rights owner and or one landowner's signature sufficient for a permit?

Lessor and Jffree,
Are you referring to the Cowboy well in the JJ Hennis survey? What do you know about this well so far??

This seismic survey is at least 4 x 8 miles, from the Attoyac river to Denning along SH 21 and 8 miles north. I know I am not locked out by a chain of locks. I own the land and minerals but am leased to South Western. I have no way of knowing who is doing the seismic survey. They seem to be doing as they please where they please. I would be ok with seismic done legal. Seismic permit deals should include small fees per acre or damages or both, not just jump on 30 square miles do as you please and leave.

ETX44, How did you find out the parameters of the survey? They are doing seismic to the East of that area as well.

I went to check on my proberty this week end. I did not check E of Denning. I did drive SH 21, FM 354, CR 229 & followed survey lines to the Attoyac.
South Western Energy has exploration rights on my land , but who is this on my land ? That is my concern. Does SW have rights to over 30 square miles in this area.

Cheerleader,
The last report I saw Cowboy GU Well #1 was still drilling on 11/21 @
11238'. Permitted 14,000'. So, by now they should be at TD. We may not hear anything else until Fossil decides to release test data.

Thanks Jffree,
What is TD? TEST DATA?
Are they obligated to release test data? I can't remember the info on the permit was it wildcat horizontal? Will they test and then go horizontal? What determines, at a particular depth, that they decide to stop vertical and proceed horizontal?

TD = total depth

The Cowboys GU Well #1 was permitted as a vertical well, so unless they amend the permit it will stay that way.

They have a set amount of time to release data to the RRC, I think either 60 or 90 days from first sales. However, the operator can choose to skip that deadline, with the penalty of a daily fine.

Hello San Augustine, My parents just got a letter from a Seismic Company .. Can someone give me heads up to what this is all about...... Hope everyone had a wonderful Thanksgiving!! Shelley