Replies to This Discussion

Permalink Reply by Rock Man on October 5, 2020 at 8:05

Been around since 2003. I am sure that Skip knows something about them and their management team

http://www.arpentenergy.com/

Permalink Reply by Natchitochesman on October 5, 2020 at 8:09

THANKS !

Permalink Reply by Skip Peel - Mineral Consultant on October 5, 2020 at 8:16

They deal in minerals, don't drill wells.  They are not listed as a Louisiana "operator".  Other than what you can find on their website which isn't much help for what you are looking for, you can perform a site search.  At the top right of the page is a blank box and next to it a button labeled, Search.  Enter "Arpent" in the blank and click the button.  You will find one or more previous discussions on Arpent.  Scroll though the archived discussions and check for member replies on Arpent.

All Louisiana landmen appreciate the company name.  Many early land grants along Louisiana waterways were established as arpents.  Generally deep, pie shaped tracts along rivers and navigable bayous laid out so that each tract has river frontage for transportation access.  Also a unit of measure.  Louisiana arpents are still appear on many maps although sometimes overlain with the PLSS land system of section-township-range.

ar·pent

/ˈärpənt,ˈärpäN/

 

noun: arpent; plural noun: arpents

1. an old French unit of land area equivalent to 3,420 square meters (about 1 acre), the standard measure of land in those areas settled during the French regime and in use until the 1970s.

Permalink Reply by Natchitochesman on October 5, 2020 at 8:23

Thanks Mr. Skip as always.  I received a letter from them today and thought the same.

Permalink Reply by Natchitochesman on October 5, 2020 at 8:29

Good information at the Haynesville Shale search link in the upper right of this page about Arpent in the past in year 2014.

Permalink Reply by Skip Peel - Mineral Consultant on October 5, 2020 at 8:35

You're welcome.  If you refer to my running rig report on the Main Page you'll get a good idea of just how much development focus Indigo has on your corner of the parish.  It is obviously a high priority for the company.

Permalink Reply by Natchitochesman on October 5, 2020 at 8:38

According to documents at the DNR website..... apparently  Arpent has done their homework in NW Natchitoches Parish.  I am doing mine as well ....

Permalink Reply by Skip Peel - Mineral Consultant on October 5, 2020 at 9:24

Good.  Homework often pays off.  And being knowledgeable places the company offering to acquire the minerals on notice that they are not dealing with someone who is unaware of the value metrics.

Companies like Arpent likely review the Commissioner's docket daily.  I do.  Applications that appear on one day are heard weeks later.  The applications that were listed on the docket last week will be heard at the Nov. 10 hearings.  So five weeks to prepare and send offers.  I helps to know that the Commissioner rubber stamps 99+% of applications so there is no need to wait until the hearing date to see if an application is approved.

Approved applications are a somewhat limited "early indicator" of development plans.  The resulting Field Orders are effective indefinitely but may be dissolved in a future application.  There's been a good bit of that going on since it became clear that the Commissioner has no problem approving multiple section Haynesville drilling and production units.  So an applicant can dissolve two existing HA units and then apply for them to be approved as a single unit of +/- 1280 acres, or more in some cases.

Just because an applicant seeks approval to drill say 12 wells doesn't mean they plan to drill all of them at one time.  Since a horizontal permit to drill must be preceded by a "spacing approval", it is good business to apply for more "slots" than wells to be permitted initially. I've got a spreadsheet for that too.  It is always worth keeping in mind that even one well holds all the unit leases in force for years.  In times of low natural gas prices, a company may apply for 12 wells with the intent to permit one or two in the short term.  For that reason any mineral owner considering a sale may be better served by waiting to see how wells get permitted as a group.  The more wells permitted, the more valuable the minerals are to a buyer.  Also, a unit proven for Haynesville Shale and proven or prospective for the Mid-Bossier shale qualifies for 12 wells in total, 6 HA and 6 BO.  So 12 "well slots" in all.  The more remaining un-drilled slots, the greater the remaining reserves and the more valuable the minerals.

Permalink Reply by Rock Man on October 5, 2020 at 9:40

Great comments on homework and its positive impact.

In a recent personal example, my small royalty interest in the Eagle Ford of Central Texas was continuing to to get a lot of mineral interest purchase requests over the past 12-24 months as my original 3 productive wells were in the 7-8 year low rate phase of production (and royalty payments). 

• Basically in the $100 per month range.

Based on my personal research, I knew that there was room for 4-5 additional laterals on the unit - plus shallow lateral options that would be HBP by the original production.

Even though I was not interested in selling my minerals, these "future" opportunities made me comfortable in rejecting any mineral purchase interest (of which some were pretty strong).

This past weekend, I discovered information that the new operator had completed four new laterals on my unit (these were essentially stealth wells since the permits that were filed by the original operator had expired but had been renewed without that info being obviously cited in the Tx RRC site.)

• Plus the drilling activity was not picked up by DrillingInfo / ENVERUS).

So I am presently waiting on Division Orders for these four new laterals - all completed with the latest state of the art stimulation approach that is being used in the Eagle Ford trend.

• Note the initial three wells were kicking off $10,000 per month in royalty payments to me in 2012.

Echoing Skip - knowledge is key as to these issues. If one cannot figure out the remaining upside associated with their minerals, they should look to work with those who can give them a good evaluation of what may be left to be exploited in their units.

Permalink Reply by Natchitochesman on October 5, 2020 at 9:48

Thanks to you and Mr. Skip for both your insights regarding this today.  I do appreciate it as always.  One thing for sure activity in NW Natchitoches Parish is not dead.  :)

Permalink Reply by Natchitochesman on October 5, 2020 at 9:47

Thank you.