http://dnr.louisiana.gov/haynesvilleshale/haynesville.pdf

I have noticed the trend is not looking good above 16n even 17n is slowing as far as drilling permits. With allot of leases in 18,19, and 20 nearing or past the halfway point of the primary lease I wonder when they are going to start developing the area. I think chk's success or lack of in s15 18n 12w will be a big factor. Since they have not applied for a permit in the ajoining units yet should this be a concern? There are claims that diamond has found good shale around the bellevue field but I have no way to verify it.

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A review of Chesapeake leases recorded in Caddo Parish over the last 90 days and by Twin Cities over the last 50 days reveals no leases in or north of the 19N townships and only a small number in the 18N townships. The leases covering tracts in 18N were recorded in July with one exception. Section 4 0f 18N - 14W continues to show leasing activity by both companies. This section is immediately west of the point where Hwy. 1 and Hwy. 71 split in north Shreveport just to the north of North Highlands and about 5 miles due east of Blanchard. Of note, both companies are recording numerous leases for residential lots within the city limits of Shreveport. Subdivisions from the far west to the far east south of I-20 are included. Quite a few of the leases are in the neighborhoods represented by the Shreve Centre Coalition.
Skip any chance of you checking on bossier? I'm actualy looking for some news.
Yep. After dinner. LOL! In the meantime, I'd like to solicit some speculation as to the means by which leases will be held where production does not presently exist. That is if anyone thinks that companies will wish to hold onto their HS rights in the northern townships until nat gas prices increase and/or better completion designs improve production. BTW, Catfish, reviewing leases takes some time. It doesn't happen in 15 or 30 minutes.
Chesapeake/Twin Cities have recorded a handful of leases in 18N -13 & 12W in the last 50 days. Small residential lots, fractions of an acre. There is no recent leasing activity in S15 - 18N -12W where the CHK Conger well is drilling. The bulk of leasing activity in Bossier Parish is in the 17N township and south.
Skip, I think some will hold either thru the drill bit or farm-out to others to drill. This may depend on how contiguous their acreage position is.
Good point, Les.
Thanks Skip you always give your best. Do you have an opinnon on where north of i20 is headed?
In areas where companies assembled sizable lease blocks at considerable expense and prospects exist for future commercial production from the HS, or other formations, at higher nat gas prices, I suspect that lessors will be offered extensions. If not enough lessors are willing to do so in areas where no vertical Pugh clauses exist, a company may drill a less expensive vertical well to a shallower formation in order to HBP. As an example in the Longwood Field, Cotton Valley verticals could be drilled on surface locations appropriate for future HA horizontal wells. The operator would case the well so as to facilitate reentry at a future date for a horizontal completion. In north Caddo, there are numerous shallow formations which are productive to some extent. Wherever HBP by a shallower and less expensive well is possible, it is an option. Also an operator may wait to the last possible moment, drill a well, declare it Code 33 (Shut in - Productive - Future Utility) and make shut in payments for the period allowed for in the lease. If nat gas prices do not improve considerably in 2010, companies desiring to hold leases will do so by whatever means at their disposal.
Any predictions on the chk well? Mine is 7 to 8 mmcd (I hope)
Some people i know in 20N 12W signed leases in 06 thru 08(before the rush) for pennies on the dollar compared to today prices. Their 3 year leases will expire soon. I was wondering if yall think the gas companies will extend these leases since they got them for next to nothing and would they drill shallow wells to hbp this far north before the extensions expire?
Depends on alot of factors, I would think being cheap they may extend them. If the rumors of what diamond have logged in and around the belevue field are true,could be a plus for that area.
gassius. There is no development activity in 20N - 12 & 11W. So it's a difficult call. You have to go to 20N - 10W to find any HA activity and that is by Diamond Oil. They have permitted several HA wells but have no completions. If lessees can, they may wait to see completion results from these well before making their decisions. Please keep in mind that it is quite likely that the leases you mention were taken for the development of formations other than the HS. With nat gas prices so low, it is difficult to make a profit drilling conventional formations. If companies do not believe there is HS potential in 20N -12W, they may just allow those leases to lapse.

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