Replies to This Discussion

Permalink Reply by Bill R on January 2, 2020 at 6:36

Jay -

So based on your reply should we not lease to BP at this time and seek others interested in leasing even if at a lower price or should we still take them on in anticipation of 2021 or 2022?

- Thanks

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Permalink Reply by Skip Peel - Mineral Consultant on January 2, 2020 at 6:43

Bill, I will be interested to see Jay's answer however the lack of detail in the BP lease offer makes it harder to provide an opinion.  BP as an operator is likely to provide better terms than a speculator or a smaller operator.  A somewhat less satisfying lease might get you wells more quickly than BP but that's a coin flip as whether it is better for a lessor.

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Permalink Reply by GoRicky on January 2, 2020 at 15:56

Yes - according to what I see, they act like the haynesville is the best GAS play anywhere around - on the other hand, I think I saw where they plan to only have 3 rigs for the entirety of the play... seems to me - the problem word may be GAS.  Some people say gas will go below $2 this year - - THANKS!

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Permalink Reply by jffree1 on January 3, 2020 at 5:09

I know they reduced their rig count down from 6 to 2 in E. TX. and I've been told by a BP lessor that they expect to maintain the slower drilling program into 2021. XTO has stopped drilling in Dist. 6.

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Permalink Reply by Skip Peel - Mineral Consultant on January 3, 2020 at 5:12

BPX has not filed for a Louisiana permit to drill since March 2018.

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Permalink Reply by GoRicky on January 3, 2020 at 7:18

WOW to the LA permit hiatus!  Didn't know it.  I DID accidentally meet a young nice-guy last year that said he was a company 'pumper' that had been transferred from LA to TX - 

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2020 at 7:00

Correction.  BPX has never filed for a Louisiana permit to drill.  The last wells listed for the company were permitted and drilled by BHP before the company was acquired by BP.

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Permalink Reply by Greg Whitson on January 4, 2020 at 10:31

BP still has not moved all of their wells to their org id in SONRIS.  There are active well still showing up with 

B6986

BHP BILLITON PETRO (KCS RESOURCES), LLC

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Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2020 at 10:35

Yeah, I noticed that only BPX and BPX (WSF) were listed.  Still no new permits under that listing (BHP BILLITON PETRO (KCS RESOURCES), LLC).

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