http://www.aogc2.state.ar.us/Hearing...01-2011-01.pdf
This should prove to be very interesting!
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http://www.aogc2.state.ar.us/Hearing...01-2011-01.pdf
This should prove to be very interesting!
If they are going to create two section units, this could backfire and cause more people to ride down or participate.Originally Posted by latech80
http://www.aogc2.state.ar.us/Hearing...01-2011-01.pdf
This is in Union County, on the Arkansas/Louisiana state line.
Of course I know due to the land description but your are correct, in Arkansas the operater can petition the court to force integrate an unleased interest.http://www.aogc2.state.ar.us/Hearing...01-2011-01.pdf
This is in Union County, on the Arkansas/Louisiana state line.
Pinebelt has leased a lot of land in NE Claiborne. 23 N 4 W and 23 N 5 W which is due south of SW corner of Union County AR. The lease rates are running $300 per acre and seeing 1/5th. Have heard large land owners getting more but have seen no proof. Leases are excluding Haynesville horizon. Seems like the leases are for 4 yrs with a 4 yr renewal.
I have been told it was a Smackover play. I have been told it was a Bossier Shale play.
Have also been told they are going to 3D the area but haven't heard when that is to start.
had someone express interest in our property for northwest lincoln, only offered $150 with 1/5th. cousin that actually knows the guys tried for $250 but said they wouldnt budge. Cant remember the name of the company but starts with an "S".
Stroud Petroleum/Shreve?
Today I recieved my copy of the January issue of Shreveport Geological Society Newsletter. This issue contains notice of subject symposium to be held on March 24, 2011.
Per this notice: "This one day program will focus on the Lower Smackoverof South Arkansas and North Louisiana" "Registration will be limitted."
This is an excerpt of a posting on another board by a geologist who is a Tech alumnus.
yep, thats it
Yeah, we're hopeful this Smackover well comes in big. It's due south of the Three Creeks area. We have mineral interest in a section just 2 sections east of where J-W Operating is drilling the horizontal. Our current lease was for $300/acre and 1/5 royalty for 5 years. With oil being near $100/barrell, if they hit a good one you can expect a substantial increase in lease prices in southern AR and north LA or wherever they think the Smackover is.
Is this mainly oil?
Yeah, from what we've been told they're going after oil. I'm not sure Smackover produces nat gas at commercial rates but I could wrong.
A recently drilled and closely watched well (operated by Brammer Engineering) that tested the brown-dense portion of the Smackover in Arkansas on the western side of Dorcheat-Macedonia field has tested non-commercial and will be temporarily abandoned and likely permanently plugged. It tested a limited amount of natural gas, very little liquids, and a lethal amount (2%) H2S gas.
This is very disappointing news for the Brown Dense. A well is permitted by JW Operating in Union County Ark. that will also test the Brown Dense and a third test by a third operator is also anticipated. But there are now two unsuccessful tests of the Brown Dense so do not let the large leasing effort fool you. There is nothing proven and in fact all information so far is negative. If anyone has the opportunity to lease, you may be well advised to "take the money" and not hold out for more because if these next two wells are unsuccessful, and the odds now point toward that result, this play is dead. Of course, if either should work, the play could get much hotter; but the odds do not favor it.
Okay, let me preface my remarks by saying I am not an industry insider, just a landowner. If what you say is true, then someone is spending quite a bit of money on worthless leases and dry holes in North La/South Arkansas. This doesn't make economic sense, given the increasing precision/technology that is now available for oil and gas companies, and the scarity of money available on the open market for such ventures.
They (Southwestern Energy through their leasing agent Pinebelt) are spending a ton of money. But it is no reflection of their certainty about the play. Since their parent company is a utility, they have very deep pockets and prefer to lease first and ask questions later. The philosophy is that they don't want to take all the risk of establishing a new play only to have others compete with them for acreage. So they lease a very large area solely in the hope that they make a discovery. If they don't, they simply "write-off" the acreage cost and move on. EOG did the very same thing in western Arkansas ($20-30mm in leases) prior to drilling their dry hole early last year and have now sold everything that they had for pennies on the dollar (possibly to Southwestern).
I'm not telling whether to lease now or not if you have the opportunity, I'm just telling you the geologic facts as they are (I'm in the business in case you couldn't tell).
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