Lower Smackover Brown Dense

Rebecca:

What broker firm does your landman work for?  Who is their client (SWN)?  What are they offering?  You will not be integrated for less than what you have already been offered, and if they have offered or leased for better terms in the area, you would be entitled to comparable terms.  So don't be intimidated.  Ask him or her what the best lease terms anyone has given in the eight sections surrounding your section.

Skip-these minerals are in S5 T20SR27W, Miller County Old Kelly Bayou Field.

Thanks.  Can you answer John Brewster's questions also?

John -Brokerage firm is McGinty Durham out of Alexandria LA & said they are leasing for Stroud Exploration --S'Port. Offer is $100 3/16 and 3/2.

Check the Bossier Group for discussions regarding J B Land.

http://www.gohaynesvilleshale.com/group/bossierparish/forum/topics/...

http://www.gohaynesvilleshale.com/group/bossierparish

Has anyone heard when they were gonna start frac on the Johnson #21 well. last i was hearing was august but no set date. 

Noticed coil tubing unit rigged up on Johnson #21 well for the last couple of days. Possibly doing TCP for frac.

Thanks, oft.  SWN has another webcast scheduled for August 15.  Maybe the Johnson will be flowed and provide some reason for comment.

Skip, Dont believe they can have well fraced, plugs milled out and flowing by then. Iwill keep eye out, this well is just down the steet from me.

Thanks, oft.  There are a couple of other presentations in the near future.

Aug 15, 2012 Enercom O&G Conference 2012

Aug 30, 2012 Simmons & Company International 2012 European Energy Conference

Sep 6, 2012 Barclays Capital CEO Energy-Power Conference

Does any one else have ther land Leased throught Prestiage Exploration out of Laffayete and having problems contacting them. All i can find is the office out of Shreveport and they list a bogus number.

Business: PRESTIGE EXPLORATION, INC. Charter Number: 35693164 D Registration Date: 4/26/2004 Domicile Address 111 JOMAR RD. LAFAYETTE, LA 70508 Mailing Address C/O STACEY A. CARRIERE 111 JOMAR RD. LAFAYETTE, LA 70508 Status Status: Active Annual Report Status: In Good Standing File Date: 4/26/2004 Last Report Filed: 4/2/2012 Type: Business Corporation Registered Agent(s) Agent: STACEY A. CARRIERE Address 1: 111 JOMAR RD. City, State, Zip: LAFAYETTE, LA 70508 Appointment Date: 4/26/2004

My Dad leased a parcel to Prestige and it ended up w/Cabot.

Sara how can i find out if mine has been sold off ? who do i need to talk to or what do i need to do. Thanks

Thanks Skip for the info

OFT, I don't know how to find out if yours has been sold off but I have heard that Prestige represented Cabot.  My Dad's parcel that was leased to Prestige is in S23 T22 R2W.  Someone who knows more than me might have a better recommendation but I would continue trying to contact Prestige to confirm they sold to Cabot.

There should be an assignment of ownership filed in the courthouse if Prestige assigned any leases they picked up to a client company.

That would be my best guess as to how to find out who ended up with the lease

I have heard from a reliable source that SWN plans to stack their rigs when they are finished at their current locations--Dean and Doles.  The reason I heard was to get exiting well into production and that rigs would probably remain stacked until towards the end of the year. 

Thanks for the info. John i know it"early but SWN just leased a 2 acre track that connects to my property. Im just wondering who ended up with my lease. The landman  who leased this property from my brother said they are ready to drill in this section. This section is between the Johnson 21 and the doles well. ( I Know this will have to run it"s course im in the business myself)

Red's December 28, 2013 was the last comment posted prior to yours.  Most replies are posted to individual discussion threads instead of to the group's comment wall.

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SOUTH ARKANSAS FORMATION PROVES DISAPPOINTING SO FAR

by Michelle Corbet  on Monday, Sep. 15, 2014 12:00 am  arkansasbusiness.com

After the booming success of the Fayetteville Shale Play, it was easy to get excited about the prospect of exploiting another geological formation deep under Arkansas soil.

But the Lower Smackover Brown Dense formation has, so far, been a disappointment for exploration companies, mineral rights owners and state regulators hoping for a 21st century oil boom in south Arkansas and north Louisiana.

While investors haven’t given up, the excitement has definitely waned. In Southwestern Energy Co.’s first-quarter earnings conference call, CEO Steve Mueller compared the Brown Dense to a playground bully.

“Sometimes they tell you that when the bully comes up, the thing to do is go fight him,” he said. “But you don’t want to do that too many times. You get beat up too many times if he keeps beating you up. And right now Brown Dense is beating us up.”

The Lower Smackover Brown Dense formation is an unconventional oil reservoir that straddles the Arkansas-Louisiana line. Oil and gas extraction companies have been investing in untapped land for a number of years in hopes that modern drilling techniques could make the oil beneath the thick limestone economically viable.

Southwestern Energy, which moved its headquarters from Fayetteville to Houston in 2001, is the primary exploration and production company in the Brown Dense, just as it was on the cutting edge of Fayetteville Shale development. Evidence of slipping enthusiasm was included in Southwestern’s second-quarter earnings report released at the end of July: Planned investment in the Brown Dense for 2014 had dropped by almost 40 percent, from $178 million to $110 million, of which $69 million was invested in the first six months of the year.

As of September, Southwestern was holding the rights to 396,000 net acres in the Brown Dense, down from almost 460,000 at the end of 2013.

Larry Bengal, director of the Arkansas Oil & Gas Commission, said although several wells have been drilled, none has been successful to date on the Arkansas side of the formation. Several wells are in production on the Louisiana side of the formation, he said.

In its September investor presentation, Southwestern Energy shows a map of 14 wells; 12 of them were testing or producing, one was waiting on completion and one had been “shut in,” or closed off.

Bill Way, Southwestern’s executive vice president and COO, told investors in July that Brown Dense efforts were being redirected from drilling to a 3-D seismic project that will enable engineers to “get a better picture” of the company’s wells, both successful and unsuccessful.

The 3-D seismic project will cover a 75-square-mile area in Union Parrish, Louisiana.

The Upper Smackover fields have produced oil and gas through conventional wells since the 1920s. Extraction companies had hoped that the Lower Smackover, a dense, limestone formation with vertical depths ranging from 8,000 to 11,000 feet, can be reached with horizontal drilling.

And, in a departure from their typically secretive culture, the producers have been sharing well data to see if anyone can “make a go of it,” Kelly Robbins, executive vice president of Arkansas Independent Producers & Royalty Owners, said.

“At this point it is very much in the exploratory stage,” he said.

It’s not just the oil and gas companies that want to see this succeed, Robbins said, but also people who own mineral rights and those who own surrounding businesses.

When do they expect to get the results from the 3-D seismic project?

I don't have the slightest idea.  We haven't received much information from members living in the survey area.  The recent 4 L SMK unit applications likely indicate that SWN will have to drill in the near future to HBP the leases covered by those units, seismic survey or no seismic survey.  I suspect that the acreage under lease totals quoted in the arkansasbusiness.com article are no longer up to date.  At this point every week brings significant numbers of leases to their expiration dates.  The last quarter of the year will be very much a drill 'em or lose 'em time for SWN.

Always appreciate your insights, Skip. The silence from the oil companies is deafening.

You're welcome, abraham.  I go to the SWN website at least once a month hoping to find updated information on their Brown Dense page, http://www.swn.com/operations/pages/browndense.aspx

The information there was posted  Feb. 28, 2014 and the leasehold total is from Dec. 31. 2013. 

Southwestern Energy plans to flare Walkerville well

Posted: Wednesday, September 17, 2014 3:26 am  magnoliareporter.com

Southwestern Energy will flare natural gas from a well in Columbia County.

Southwestern Energy Production Company has received permission to flare gas at the workover of its McMahen well near Walkerville.

In a recent letter from Gary Looney, assistant director of the Arkansas Oil and Gas Commission, to Cathy Rowan, Southwestern representative, Looney noted the request and granted it under certain conditions.

The flaring of natural gas will not exceed a 20-day period from the start of flaring. If hydrogen sulfide is detected, precautionary measures will be implements and the commission’s El Dorado office will be notified. Gas production from the well will be metered prior to flaring, and the appropriate royalty payments will be made to owners. The commission will also be notified when flaring ceases.

The request to burn off natural gas is the latest step in a process during which Southwestern Energy will reexamine its deep well into the Lower Smackover Brown Dense formation.

As was reported last week, a letter on file with the Arkansas Oil and Gas Commission says that the company will place a workover rig at the McMahen No. 19-21 No. 1-7 site in a wildcat field west of Arkansas 19.

At the time the well was first drilled last October, there were hopes that it would find a large quantity of oil in the LSBD. The well was drilled to a depth of more than 11,000 feet. But perforations between 10,976 and 11,305 feet produced only four barrels of 40.1 gravity oil daily. The well was completed on December 17.

A letter from Rowan, a Southwestern Energy production analyst, said a workover rig will be used to perforate in the same zone but at a higher interval. There are no plans to fracture stimulate the well, but those plans may change. Rowan told the commission by letter that if Southwestern does go ahead with fracing of the well, the commission will be notified.

Southwestern Energy has let go thousands of acres leased for mineral purposes in the Columbia County area since its initial interest in the Lower Smackover. An exception has been the acreage that includes the square mile around the McMahen well site.

You have been looking at the recent 3 D shoot Ken? In your opinion the BD won't be productive because of the lack of a seal or sporadically productive where there are seals? Thanks for any input.

Are you saying they will probably focus on conventional Brown Dense traps? Looks like the LSBD has a lot of variation throughout the extent. Maybe there are layers within the Brown dense which are sealed similar to the CV. I'm no geologist but it appears the seal not only prevents leakage of hydrocarbons but also causes the very high pressures i.e. > than 0.45psi/ft. When I've reveiwed old well data throughout north louisiana it's interesting how at one depth of a formation the flow pressure will be 200psi then at 30 or 40 ft deeper or shallower the flow pressure will be 4,000 psi. I've observed these variances in the Hosston, CV, and Smackover and I've wondered what causes this pressure difference.

Ken,

I know you were in the business. Do oil and gas companies extensively study old wells before proceding with any exploration?

I was just wondering because SWN has some interesting wells on land they have already leased. Here are a few such as a HA well producing 200bopd with BHP of 4,000+psi, a HA well making 400bopd with BHP of 4,000+psi, a smk A well producing 300bopd with BHP of 6,000+psi. There are many more examples.It almost seems O&G companies should get old wells and look for these high pressure areas and then lease the footprint, test, and then step out if productive.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

Very interesting. Thanks for the insight. Do most companies get tunnel vision on new projects? Take SWN for example, will they only look at the LSBD on the land they have leased or will they take this opportunity to look at all potential targets? I understand they can't go on a wild goose chase but at the same time if you have property locked up you should try to maximize all returns if possible.

Your dialogue, while interesting, is hard for a novice lease owner to follow. What is bottom line? Should we be encouraged or discouraged by the latest findings?

Appreciate the response. Wish it was better news...

What would you expect SWN to do with existing wells producing at commercially viable levels?