Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on November 18, 2009 at 12:33

David. It's a good well. Good IP. Good Flowing Pressure. Especially for an area that has not had a lot of really good wells to talk about. The portion of the lateral containing the perforations is 4,040'. Though the number of frac stages is not listed in the Well Scout Report I would guesstimate that there are about 12. As a general observation, most operators seem to use 300 to 350' frac stages with about 85' spacing in between. Congratulations to the lessors.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 18, 2009 at 12:51

Agreed. I wonder if this will cause them to reconsider their north Caddo leasehold?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 18, 2009 at 13:42

Okay, let say north of I-20. Chesapeake allowed a state lease covering the mid-Cross Lake area to expire at a loss of approximately $20M about three months ago when the delay rental came due.

• ▶ Reply

Permalink Reply by alleyboy on November 25, 2009 at 13:35

if they were so scared of the cross lake area why did ]they bu]y all the leses tyhey could in 02 17n 15w RFor 17,500.00?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 29, 2009 at 10:29

alleyboy, think of the time line. The $17,500/acre lease bonus offers were in 2008. The wells in the Blanchard area (Longwood and Caddo Pine Island fields) were completed in early 2009. When the wells produced significantly less that the fields to the south, the offers in the area dropped from $17,500 to $1500 very quickly. In fact for many there were no offers at any bonus amount. Just as Chesapeake walked away from a $20+M state lease, they walked away from all those $17,500/acre offers after the prospective nature of north Caddo changed. Chesapeake and other HA operators will spend their development dollars where they think they can make the best wells. It matters very little, if at all, what they may have paid for the leases originally.

• ▶ Reply

Permalink Reply by J W on November 18, 2009 at 14:28

im on the south side of the lake and they have lease everthing around here.im in sec33 only two years left on the lease. lots of water on the lake for them to use to drill. maybe soon who knows

• ▶ Reply