Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on August 3, 2012 at 12:26

I'm not sure, tony.  I haven't seen COG touting any BD leasehold so I assume they are holding on the 13,000+ that they have reported previously.  They may be content to remain a Working Interest in BD wells operated by SWN.  SWN has locked up the majority of prospective leasehold in the area of the most recent wells as far as I can tell.  There may not be room for another company to operate.  If SWN can manage to surpass the economic threshold for the industry to buy into the BD, they will likely find a number of investors willing to supply development capital while retaining operating control of the productive BD fairway.  The aerial extent of productive BD acreage may not be sufficiently large to allow for more than one operator.

Permalink Reply by G Meaux on August 8, 2012 at 13:00

Skip,

 What are your thoughts on Cabot and the hearing scheduled on these 3 units? Do you think they will still wait on others?

http://ucmwww.dnr.state.la.us/ucmsearch_070611/UCMRedir.aspx?url=ht...

Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2012 at 13:04

SWN has published a play map which shows these units as their operated drilling units.  My thoughts are that a successful application for a drilling and production unit gives the applicant the right to operate or to designate the operator.  They may be Cabot units but it appears that COG has already designated SWN as the operator.

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