Replies to This Discussion

Permalink Reply by The_Baron on July 7, 2009 at 6:26

EOG holds the leases, Border is doing the drilling.

They are trying to Horz. complete the smackover.

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Permalink Reply by Cecilia on July 7, 2009 at 6:30

Thanks. Some similarities to what EOG has done on northern end of Barnett. Significant oil production. Any idea whether it was EOG that backed the first Etoco well? There was help from someone with deeper pockets than Etoco.

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Permalink Reply by Skip Peel - Mineral Consultant on July 7, 2009 at 7:24

Cecilia. IMHO, the ETOCO backer in Missionary Lake North is Devon Energy.

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Permalink Reply by Cecilia on July 7, 2009 at 7:37

Devon offered leases at $4k / 4yrs as far as 22n last summer after the first Mission well was drilled, though I don't think they had any takers. They did sign some leases in 21n of Webster Parish last October at the same terms. For an outsider looking in, there are some compelling stories along the fringes of this play. Devon's northern interest is one of them, particularly with this Smackover horizontal in Arkansas.

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Permalink Reply by Skip Peel - Mineral Consultant on July 7, 2009 at 7:48

Devon didn't need many takers, Cecilia. The tracts up there are quite large. Besides Devon was underwriting ETOCO's lease acquisitions. Or so the story goes. There were nondisclosure clauses in some of the larger leases. The leasehold extends from 21N through 23N. When the economics of the play went down the tube, the leasing stopped abruptly.

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Permalink Reply by Mark Myer on July 8, 2009 at 13:39

I dont know about that - where did you hear that. From what I know of EOG, they are pretty up-front about their activity

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Permalink Reply by Skip Peel - Mineral Consultant on July 8, 2009 at 13:46

Mark. I'd respond but I'm not sure what you are taking exception to. These preceding comments are concerning DVN. Not EOG. I can tell you for a fact that there are no recent conveyances recorded for Caddo Parish that have any obvious connection to EOG.

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Permalink Reply by Cecilia on July 7, 2009 at 14:15

From what I can tell, there were large lease blocks that Devon signed up directly from 21n to 23n, Caddo to Webster. A few older leases in 23n from Etoco and Stephen M Jenkins Inc. Most of Devon's instruments were signed July 08 - Dec 08, recorded Oct 08-Jan 09.

If Devon was involved in Etoco's wells, and the first Etoco well hit TD on 21 May 08, Devon had ample time to do some science on the wells and saw something of interest. To date, 19n is transitional for the productive shale. With time we may come to understand their interest.

Interesting to note that, while DVN has a large acreage position on the Texas side, they didn't get into the bidding war in the Louisiana core areas.

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Permalink Reply by Skip Peel - Mineral Consultant on July 7, 2009 at 14:41

Devon is conservative. And does not tend to telegraph their intent. Leaving opportunity for speculation. And the possibility to misinterpret their actions.

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Permalink Reply by inthestix on July 7, 2009 at 19:20

Skip do you know of a company by the name of Berkshire Operating that is drilling vertical wells to the smackover formation in T22N Sections 10 and 3 in Northeastern Bossier parish? Is anyone underwriting them? They are rigging up on their 3rd location within a couple of years as we speak.

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Permalink Reply by Skip Peel - Mineral Consultant on July 8, 2009 at 2:02

I am aware of Berkshire but do not know of any connections they may have to other companies.

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Permalink Reply by WHuguet on July 8, 2009 at 3:03

I don't know why all the borderline "conspiracy" stuff about the Etoco/Mission wells (I guess it gives people something to talk about).

Etoco has its own pockets - they have plenty of expensive, great wells they operate in Texas (with no backing). You guys are talking about 3 wells holding only 480 acres (160 ac. units).

The Etoco Wells are primarily Cotton Valley Oil wells, and if this Smackover horizontal stuff pans out and is economical they might try it. FYI, the Etoco project started well before the Haynesville madness. Everybody wants to see in these wells something that isn't there.

As I understand it, Clayton Williams was poking around in the area last summer but never really pulled the trigger.

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