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Comment by Alamo on September 10, 2008 at 16:45

COG is drilling 8 "earning" wells for ExxonMobil in the Trawick Gas Field and if those wells cost $1.5 million to drill and complete, that's an extra $12 million to add to their equation which would more than double the "$500 per acre" figure shown to $1000 plus an acre.

PXP is the only company that has paid what Haynesville acreage is worth--at this point in time. Wait until the CNG revolution takes place and see what Haynesville Shale acreage is really worth.

Remember the Barnett Shale lesson my friends. Today a land man told me , "With the recent dip in natural gas prices our acreage wasn't as valuable as it was last month"! Well then the counter argument would seem to be true that when the CNG demand factor takes place, that acreage will be worth the $50,000 an acre that Aubrey McClendon has predicted. Aubrey didn't get to be CEO at Chesapeake for being stupid.

Those $500 leases were negotiated when everyone was in the dark about the potential this gas field represents---IT'S THE LARGEST NATURAL GAS FORMATION IN NORTH AMERICA AND WE OWN IT. PLEASE DON'T GIVE IT AWAY. DOING SO, HURTS US THAT DO NOT WANT TO GIVE IT AWAY.