Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant 21 hours ago

Yeah, Steve I do.  The answer in general is not for about another twenty-five or so years.  The more specific answer for Section 6 - 9N-11W is, its just getting started and has a long, long way to go.  You have only one well and it is on its last leg - 1452 mcf reported for December.  That section is proven for both Haynesville and Bossier shales and over time will get seven to nine more wells.  Chesapeake (EXE) will need to drill more wells soon.  Likely this year.  The timing depends on whether any mineral owners force the company's hand.  Chesapeake may attempt to wait to the last moment but your only well will likely not meet the production in paying quantities test in the next few months, maybe mid-year.

Drill, Baby, Drill is a silly political talking point with zero relevance.  I wish I could get mineral owners to realize that.

• ▶ Reply

Permalink Reply by Hale Yayuh 4 hours ago

Yep, it's pretty maddening to hear how many people think 'drill baby drill' has validity. It's nothing more than hype, propaganda and political posturing. What matters for oil and gas companies and their drilling schedule is price and profit and the feds do not control that at all. Nobody can just snap his fingers and get these companies to drill, he's full of it, you've been had. Over and over. What we all need is less drilling. To lower the supply so price goes up. Hopefully!

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant 4 hours ago

O&G majors will pay lip service to the idea but they will not out produce demand.  As our natural gas nears $4 an mcf, HA operators will keep managing supply to get to the $5 price target they have stated as their goal.  Above $4, all HA operators should be making an acceptable profit margin.  I don't think they need to get to $5 but we'll see.  We'll be getting some corporate presentations over the next 45 days that may shed some light on current F&D costs.

• ▶ Reply