Les Bamburg

Thanks for the info.

Les,

Thank you for your reply. They field guys over at TigerDroppings had nothing really new that wasn't general knowledge.

However, they are continuing to put new pads out along this same area. I am interested in the more "privileged" info...but I guess clearing off for more pads is sort of a clue.

Thanks again for the FYI! If I can return the favor, please do not hesitate to ask.

DrWAVeSport 6/22/08 p.m.

Les did you attend the mtg last night in Nathchitoches? if so, anything you can share?

I too live out of state but own land in natch parish..you are very insightful on different areas and look forward to any information (esp anything i can find out in my area) thanks!

Is this the Les B from Hickory Grove?

Yes, I'm not very imaginative and I found the LSU Tigerdroppings forum before this one. Obviously I couldn't let them think I was one of them. (grin) I already have more user names than I can keep up with.

Where is it located on the homepage?

Please read my post per Force Pooling/July 9/08 p.m. J-W Operating Co. is force pooling several sections...and attempting to get the depth of the Lower Cotton Valley defined (per these sections) as between 10,030 ft. and 12,100 ft., Section 23, T16N, R13W, Caddo.
I thought this was considered the "Haynesville?"

I am interested in what you think per same. Thanks in advance.

DrWAVeSport 7/9/08 very late indeed

Les,

You seem to work in the industry. I know about o&g what I've learned in the past few months.

I'm trying to make some rational plans for my future, and hope you don't mind giving me some more insight. I hope you dont mind me not putting this out in the full room; I just don't want everyone seeing my business.

I have 99 acres of mineral rights in southeast DeSoto that I've leased to Chesapeake. The acreage is in two roughly equal sized tracts about two miles apart, one north of SR 346, the other on the road's south side.

I've never known of oil or gas at any level being on the land. Do you know if they could drill a shallow well there that would allow them to hold off on the deep drilling? Also, your $1,000/acre estimate -- I guess that is gross, not what I would get with my 25% royalty.

Thanks,

David Smith

I reread your answer. You answered my royalty question. I've been traveling all weekend....

Do you mind telling me who you are professionally. I'm a commercial appraiser, but being in Florida know nothing about mineral rights, as you can see.

David

Why are you anonymous here?

Gary Conlay is my parents lawyer. I don't think this is a forum where anonymity is best.

Les B:

Per O&G Reps., I should say I am requesting...J-W Oper. Co. or any O&G Co. Rep. that has submitted an application permit to the OofC that includes a "depth" change of a well-established drilling field like the LCV, etc. which technically reaches into the Haynesville...an explanation for same. I have not received any answer on this forum. However I did see this on "TD" forum per TigerDog83:
quote:

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What happens when they reclass or combine the zones? Like J-W is trying to doin Desoto right now.What exactly could an operator accomplish by doing this? Thanks.
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It doesn't really matter what they call the formation unless leases are past primary term. If the leases are still in primary term and have pugh clauses in them then it should not matter because drilling has to be done to the Haynesville to hold it and all depths above. Pugh clauses would adress this depth whether the zone was called Lower Cotton Valley or Haynesville. With primary term leases the only way this could benefit the operator is by keeping their activities secret from other operators. If the leases are past primary term then the operator could be trying this to hold the Haynesville through a re-definition of what the zone means. This would be advantageous to the operator. Knowing J-W and the area in question I think these leases are in the primary term since this is outside the Caspiana Cotton Valley area so the lessors are probably making a big deal over something that is insignificant in the long run. If J-W is pooling tracts here the lessors better stop holding out and lease or else J-W sounds like they'll be drilling. If you get too greedy instead of taking a good offer this is always a possibility especially when you only own less than 10 acres. A 2 acre tract is almost invisible to an operator in a 640 acre unit.

Thanks for your interest. I look forward to a better explanation from the man who is handling these requests...Mr. James H. Welsh

Les,

I have a cousin who's a geologist who values royalties by their percentage of top bonus payments in an area. He says, for example, if bonus payments top out at $16,000/acre and royalties are 25%, then the value of that acre (or royalty) is $4,000 (plus its surface value.)

As an appraiser, I'm trained to value by income: (amt of production x gas price)/discounted for time.

I also look at cap rates, and at $4,000/acre, one would expect annual income of $400 or $500/acre, which seems very low for a field of this supposed potential.

Any insight?

thanks, David

Les, I wondered if I could email you privately so everything I write isn't seen all over the world wide web.
Could you send your email address to my inbox?

Les, My calculations of 12 mcf daily at current gas prices show per acreage income in the $25,000 range.

I'm also curious about the quick and dirty valuation method based on lease payments and royalty percentage that my cousin used. Are you familiar with it?

David

Les,

My DCF, which estimates 12MMcf daily, beginning in Year 8 and dropping off 10% per year, current gas prices increasing by 5% annually and the $1,000/year you estimated from a small vertical well in Years 2-7, shows a 30 year well having a present value of $124,000 per acre for my 25% royalty. I've attached my spreadsheet.

Someone today offered me a quick $10,000/acre, and I turned him down.

SomeGasLeases2.xls

I looked around and saw there has been a lot more horizontal drilling than I had thought, and listened to a press conference where Chesapeake gave your 73% first-year fall off. However, I listened to some of the earnings conference discussion today, and I heard Chesapeake say it anticipates recovering 52BB cfe from each square mile in Haynesville. That is tough to square with such a high falloff rate.

Attached is one way to get to 52BB. Shows a PV of $82,000/acre.

I agree with Gatrpaw...thanks Les for contributing so much to these forums. Your knowledge is very appreciated around here!

Thanks for linking. You have solid knowledge and I appreciate the ed you are providing. All best.

Thanks for your contributions. I have decided to make you a featured contributor.

Woe! A featured contributor!!! How awesome is that? :)
I too wanted to thank you Les, for that last bit of info you sent me. And thanks tons for letting me ask you questions and freely giving advice.

BTW, I'm jealous of this long vacation you are taking. It's really not fair to the rest of us hard working people.
So,...don't enjoy yourself too much. Glad you're still hangin' out here though, not making yourself scarce.

Would you like to start the group.let me know and we will arrange it

"Also as you move south the CO2 content increases from 2.5% to 5.0%."

Les - read this comment to Jay when I was checking his response to my question. Thanks for that data. My question to you is "Where is south?" As you mention this wasn't public information, I'll understand if you're unable to disclose. Appreciate your help.

Les B,

That is a great idea. However, I am out of the group beginning business....what would be good is if you started the group. You can create a group and then i will approve it.

We are kind of new to the area, we moved there in july 2002.

Hi Les,
FYI...got a call from a surveyor yesterday about seismic testing in our area beginning in January.
M

Yes. The agent I talked to said that he was obtaining testing/access permits for 300 square acres.
Do you know anything about CGGVeritas?

Thanks Les, i appreciate your info,i have a little property just southwest of the Donner well, & 243 acres underwater just to the west of the Donner well.

Les - Would love to get a list going of HS wells in any part of southern Arkansas. Do you have any info on this part of the ark-la-tex?

thanks Les. But don't forget about ark. when you have confirmed info.

Hey Les,

In DeSoto Parish, Sec. 1, 15n 14w, the rig sign there is Patterson Rig No. 88 for the Camterra well.

Not to my knowledge, but my Mother recieves all correspondence about property.