Replies to This Discussion

Permalink Reply by Bradley McWilliams on July 28, 2011 at 11:22

Check out the latest from SWN's web page-

http://www.swn.com/investors/Press_Releases/2011/2Q%202011%20Earnin...

Permalink Reply by Bradley McWilliams on July 28, 2011 at 11:57

I wouldn't call it a play just yet, but at least there not saying "no thanks"

Permalink Reply by Hale Yayuh on July 28, 2011 at 11:58

Well, we have a concept. Hoping for something good.

Permalink Reply by Skip Peel - Mineral Consultant on July 28, 2011 at 14:07

I do not think that SWN is responsible for all the lands leased.  At least if the comments here on GHS are anywhere close to accurate.  I think there may be other shoes yet to drop.  If the Brown Dense is proven economic, it definitely rates a quarter royalty.  And any mineral owners in the targeted areas who have declined to lease previously will likely get it soon.  AR. mineral law is still outdated and detrimental to the interests of mineral owners.  Maybe after lease offers increase and development commences some of them will be willing to spend a little of their lease income in supporting an effort to amend the mineral code.  Its way over due.

Permalink Reply by Arkansas Traveler on July 28, 2011 at 17:38

SWN owns all of the EOG (Border), Triad and Pine Belt leases taken in South Arkansas and North Louisiana.  They have the Abstract Company leased in Columbia County.  If and when they lease the Abstract companies in Lafayette and Union Counties, it will be next to impossible for another company to compete with SWN.  This is the same pattern that SWN used in the Fayetteville shale play.

Permalink Reply by Skip Peel - Mineral Consultant on July 29, 2011 at 1:07

Even if SWN does indeed have all the Triad and Pine Belt leases in N. LA., they do not own the development rights to all the lands included in the prospective area by a long shot.  There is significant legacy leasehold by other companies and considerable unleased lands within the area.  It is possible for other companies to get in on a L SMK/BD play if one proves economic.  Devon has already permitted their first L SMK/BD test in Morehouse Parish.

Permalink Reply by Skip Peel - Mineral Consultant on July 29, 2011 at 2:28

You are correct, tony.  And the prospective area may extend east and west to some significant extent beyond the counties and parishes you mention.  Now we will finally get to see some wells drilled by capable operators. 

I have a suggestion for you and the other members who own minerals and follow the BD developments.  Discuss where things go from here as regards GHS.  In order to consolidate information and make searches for that information relatively simple, should someone or Keith set up a separate Brown Dense Group page?  Should there be standard discussion threads for units, permits, tracking rigs, completions, etc.  Think Les B.s regularly updated Drilling Rig Locations. Also think about the fact that we will all be tracking an emerging Play that covers two states with different regulations and mineral laws.  That can confuse the heck out of newbies.  One of the standard discussion threads should be devoted to AR. mineral owners and the laws that pertain to their mineral interest.  I suggest that you communicate with Keith and get a format in place before things get too busy.

Permalink Reply by John Brewster on July 29, 2011 at 3:05

I agree with everyone's analysis, and Skip's suggestion that we consolidate several threads into a central Brown Dense site.  It would be terribly helpful to follow permitting, spud, completion info although in my experience the AOG either gets that data late or releases it slowly (don't know which).  My only comment would be it is premature to encourage people to expect 1/4 royalty.  We know who the operator is and the magnitude of the play, but we haven't seen the results so there is no reason yet to expect the higher royalty.  Certainly if good wells are reported, the value of our minerals will increase but we'll need to wait and see.  The other factor that could cause higher bonuses and royalty, as Traveler, Tony, and Ray suggest, would be someone like CHK coming in to take "in-fill" leases or leases on the fringe of the fairway (hoping that drilling will extend the play).  Chesapeake makes a living doing that well (Barnett, Woodford, Fayetteville).  I suspect they have already been active as they don't need to wait for a press release to know who is doing what.  That may also be what EOG was doing, hence their assignment to Pinebelt which indicates SWN bought out EOG's position.  Murphy Oil (through their family company) took some leases in Union County.  I suspect they might become more aggressive in buying more, and in my judgment they would probably participate rather than farmout to SWN when their leases are proposed for drilling.

Permalink Reply by John Brewster on July 28, 2011 at 17:06

Thanks so much for noting this and posting it.  Mystery solved!

Now let's all watch for the results.  Good luck to all who leased.

Permalink Reply by BirdDawg, plain ole' idiot on July 28, 2011 at 17:43

I don't think the mystery is solved.

Permalink Reply by Skip Peel - Mineral Consultant on July 29, 2011 at 3:06

While you guys are waiting to compare notes with Keith, I suggest that you look through some of the existing group pages and get some ideas.  Help Keith out by making suggestions that he can work off of, you know he values your input.  Here is another suggestions for a page within a new BD group, one dedicated to helping members learn how to access information from the AOGC database.  And it would be great to recruit one or more experienced O&G attorneys as long as they follow Keith's rules.  You could have them join and communicate with Keith so there are no misunderstandings.  Start brain storming and discussing what you want the BD portion of GHS to be.

Permalink Reply by John Brewster on July 29, 2011 at 3:56

Today's prepared telephone conference notes say the first well in Columbia County, AR will spud in August to 8,900 ft TVD with 3,500 ft lateral.  Second well will be in Claiborne Parish - 10,000 ft TVD and longer lateral.  Planning ten wells in 2012.  Don't know whether those notes are on the SWN website, but they are in an 8-K available at Edgar website.

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