Replies to This Discussion

Permalink Reply by obed w odom on November 20, 2013 at 9:46

Thanks, Skip and Matthew. It took me a while to realize it, but after a friend pointed it out to me, I now see that Tract 43649, in Claiborne, is only 4 miles east of our property, which I take as an encouraging sign. This tract is also about 2 miles east and slightly south of the Garrett well.

Permalink Reply by Matthew Kable on November 20, 2013 at 11:13

I've only done a quick scan through the tracts, but it looks to me like there is obvious interest in characterizing what lies geographically between Southwestern Energy's Garrett and Doles wells. Also, looking at the locations of the tracts, they seem to be consistent with where SWN seems to think the LSBD would be prospective for oil & gas (~9,000 to ~11,000 depths based on the isopatch maps SWN has published in their presentations).  Anyway just my quick thoughts.

Permalink Reply by Doug Boone on November 20, 2013 at 15:40

Is the Garrett still being flared?

Permalink Reply by obed w odom on November 21, 2013 at 4:19

Doug, yes, my contacts in the area indicate that the Garrett is still being flared. The permit to flare extended to January 14, 2014, I think.

Permalink Reply by obed w odom on November 21, 2013 at 5:07

On looking further at Tract 43649, I see that the western boundary of this tract actually abuts the eastern boundary of the Garrett 7 H unit, and the northern boundary of Tract 43649 is the AR/LA state line. Also, Tract 43651 is contiguous downstream on Corney Creek with Tract 43649, so these 2 tracts include all of Corney Creek from the state line into extreme eastern Claiborne Parish.

Permalink Reply by tony allen on November 21, 2013 at 8:42

Nice catch, obed! I think you are exactly right. I hope they form drilling units that covers all that acreage. Has to be good news for those around the Garrett.

Permalink Reply by Doug Boone on November 21, 2013 at 17:49

Thanks for the info.

Permalink Reply by obed w odom on December 11, 2013 at 3:58

If I am looking at the data correctly, there were no bids for the 2 Claiborne tracts yesterday (Tract 43649 and Tract 43651). Why nominate a tract if you are not going to bid on it? The good news is that all of the Union Parish tracts received bids of $155 per acre.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_min_leas_tract1

Permalink Reply by Skip Peel - Mineral Consultant on December 11, 2013 at 4:15

obed, companies that nominate tracts to the monthly state mineral auction do not set the minimum acceptable terms.  The public entity that owns the mineral rights sets the minimum bid.  Nomination signals an interest in leasing a tract but does not guarantee a bid.  Unless this is  an atypical circumstance, the nominating company chose not to make a bid that met the minimum.   The bids for Union Parish tracts, indeed all the tracts in the auction, should be available online, it's just in a different part of the database.  I'm out of town and on my laptop so I may not have a link.  I'll see if I can make one to post here. 

Hmmm, your link does have the bid results.  SWN acquired the Union tracts for $155 and a fifth.

Permalink Reply by Matthew Kable on December 13, 2013 at 13:14

I notice in an article published in the Times Picayune (New Orleans) that they're claiming several of the new leases awarded to Southwestern Energy on Wednesday were areas the company bid on and won two years ago.  Apparently areas where leases expired before the company could drill or figure out the code to finding economic quantities of oil/gas.

http://www.nola.com/business/index.ssf/2013/12/december_state_lease...

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2013 at 13:36

State leases have a primary term of one year.  If not drilled in the primary term the lessee is required to pay one half the original bonus amount to extend the term for each additional year.  For this reason companies usually leave state lands until they have acquired the complimentary private leases.  Lack of competition has allowed SWN some leeway in allowing leases, private and state, to lapse. 

Permalink Reply by Skip Peel - Mineral Consultant on April 15, 2014 at 3:27

For those who would care to inquire if SWN will exercise the option to extend their lease, I believe this is the current contact information.

Southwestern Energy

715 Sterlington Hwy.

Farmerville, LA 71241

318-368-4445

• ‹ Previous
• 1
• …
• 5
• 6
• 7
• 8
• Next ›
• Page