Replies to This Discussion

Permalink Reply by Keith on January 16, 2013 at 3:43

I think at this point I would wait for a little more on the lease bonus. We know that Halcon found enough pay on the horizontal section to make them drill the lateral on the Broadway. As you say, we know that they are planning on drilling more in the area. We know that EOG has made an economically viable well in the area and that EOG paid around 1000 per acre for some properties in Avoyelles parish. We know that EOG is going to drill more in the area. Plenty of upside in this play.

Now what if the economy tanks, the price of oil follows it down, and then funding for Halcon and it's competitors drilling activities in our area dry up for an extended period of time? What if some draconian fracking rules get implemented making shale plays non viable? What if Halcons Broadway well doesn't produce anywhere near what they expect and it's determined that the geology in the local area is the problem?

So do they take the money now or wait and see what the future brings? That is a difficult choice.

Permalink Reply by Jean on January 16, 2013 at 4:47

Thanks Keith for your input....I realize its a gamble like you say..  I think I will pass your advice around and wait and see...no one thinks they would get what some people got in Haynesville but I do believe the operators are low balling everybody in that area.

Permalink Reply by Two Dogs, Pirate on January 16, 2013 at 5:38

358 BOPD on a 10 million dollar well is economically viable? Who got $1000 per acre? My experience has been  that rig hands will tell you what you want to hear as long as you are buying the beer. Why are the landmen and abstractors being laid off?

Permalink Reply by Keith on January 16, 2013 at 11:44

Two Dogs, Jean, it was $801 per acre that was paid for either parish or state property in Avoyelles my memory was faulty on the exact amount. Sorry!  Below is the area details, look it up.

 

AVOYELLES 16 T03N R06E
AVOYELLES 16 T03N R04E
AVOYELLES 16 T02N R05E
AVOYELLES 16 T02N R06E

 

My guess is as good as yours as to why land men are being laid off. One guess would be that they may have aquired as much land as they need for a solid  explorationary drilling program. I would advice Jean to take all of that into account. I gave my opinion on the good and the bad of holding out versus taking the money now. Myself I took the money that was offered on the second offer (prior to the Dupuy rig finshing the horizontal section) because I didn't want to risk the bird in the bush.

 

I'm also not giving much weight to the 358 BOPD. They are supposedly on a small choke and they aren't shutting any rigs down due to being dissatisfied with the overall results, so lets see what the long term production is and what the decline rate is.

Permalink Reply by Jean on January 16, 2013 at 11:56

I am pretty sure the person who told me he got a thousand an acre (across the river from Poland) is not lying and another person did not come out and say how much her parents were getting but said that's about right when I mentioned $1000. I personally believe that the oil companies hired a lot of local people to be "landmen" and after 90% of the people got leases they didn't need them anymore so laid them off. The driller wasn't getting free beer when he said repeatedly that people in the Poland area would be very rich...he and his wife were together at the time and I can't think of a reason why he would say such a thing unless he really believed it.....By the way what does BOPD stand for? Thanks

Permalink Reply by Keith on January 16, 2013 at 13:35

BOPD (barrels of oil per day)

Permalink Reply by Two Dogs, Pirate on January 17, 2013 at 5:24

Keith the state lease is $800 per acre per year, so if it is maintained without drilling  that would be $2400 for a 3 year lease. As I have said before the people claiming $1000 per acre are adding the $500 per acre for the 3 year primary term and the $500 for the 2 year option to extend.

Permalink Reply by Jean on January 23, 2013 at 4:21

A follow up on Broadway well...the rig is gone as of yesterday and supposedly moving it to Woodsworth...

Permalink Reply by blackjackjackson on January 23, 2013 at 4:46

i think it was moved to lambright property behind buccaneer truck stuff 8222 hwy 165..  might be able to see it from twin bridges rd.

Permalink Reply by blackjackjackson on January 23, 2013 at 17:17

i drove 2.5 miles w on 488 (twin bridges rd) past jackson st. ext.

i could see the rig equipment and 2 cranes about 1.5 miles across field.  (no crops in the way.)  the rig will be up in a couple of days.

you can't see it from 8222 hwy 165 entrance.

Permalink Reply by Jean on January 24, 2013 at 1:51

I'm hoping the well there is a good one!!!!

Permalink Reply by blackjackjackson on December 26, 2012 at 17:11

wow, well, start to finish:

http://eaglefordshale.com/news/typical-eagle-ford-well-start-to-fin...

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