Arkansas - Natural Gas Drilling

[mitch2]

I read an article lately that a couple of companies are still hard at it in the Fayetteville Shale. My real question for those that live in the area is how people feel about it - generally speaking about drilling operations... as with anything there are the extreme pros and extreme cons. I am wondering what these 2 companies know that others do not... hhhmmm. With natural gas prices soooo low at the interim... I wonder what the word is by "normal" folks.

Thanks for replies and opinions.... I have to say that this board gives an average Jane ;-) a place to mingle with people from all around the country that are peers, and find out things happening without reading it through a filtered media mouth.

BTW - I work "loosely" with the natural gas industry and things are soooo slow right now so I was just curious about the Arkansas area.

Michele

 

[1982vett]

If they are still drilling @ $2.00 gas, the wells must be really good. But another reason to continue drilling are holding on to the leases. Depending on the contract. The only way to hold on to them might require them to drill which would go back to being good wells. Leases aren't always dependant on continuous production, but most do have a specified time for development to begin, such as a 1 year lease. Once in production the lease is locked in and production can be shut in or produced only enough to hold the lease.

If you remember, a lot of money was spent to obtain the lease. The company will lose the up-front money plus the lease if production hasn't begun by the end of the lease term. In many cases, drilling would be cheaper than risk loosing the lease or having to re-lease.

 

[HerefordSire]

I am south about three hours where they are drilling. Historically, Arkansas is a natural state. The owners of the state, have a usury law capping what banks can charge people for interest rates. This prevents large banks from coming in along with companies thereby preserving the state of the nature at the risk of employment. One early gas driller ended up buying the Dallas Cowboys with gas profits. I recently saw on PBS how the drilling was polluting the water. It was very scarey to me, but I feel like it was presented from the greensters point of view. I say keep drilling and then levy cleanup penalties if necessary.

 

[HerefordSire]

By the way...the huge gas patch is south of me about 1.5 to 2 hours around Shreveport. A friend of mine in my R & D department just retired after his family sold mineral rights. Long ago, his family had a large cotton plantation and owned the majority of Shreveport. Last I heard, 75 descendents each received millions up front and signed a 20 year deal.

 

[HerefordSire]

No floor in sight for natural gas; prices plunge

Natural gas prices plummet to seven-year lows; many will see huge cost cuts for heat

NEW YORK (AP) -- Natural gas prices tumbled again Thursday, dropping to new seven-year lows after the government reported more supplies were put into storage as the entire country pares down on energy usage.

http://finance.yahoo.com/news/No-floor- ... et=&ccode=

 

[mitch2]

Seven year low...Thats what I am saying!.... Shreveport area is on "our list" also.

Michele

 

[backhoeboogie]

But another reason to continue drilling are holding on to the leases. Depending on the contract.

That is exactly what's happening.

 

[TexasBred]

By the way...the huge gas patch is south of me about 1.5 to 2 hours around Shreveport. A friend of mine in my R & D department just retired after his family sold mineral rights. Long ago, his family had a large cotton plantation and owned the majority of Shreveport. Last I heard, 75 descendents each received millions up front and signed a 20 year deal.

Get all you can up front cause I'm hearing (street talk) that the Haynesville is not materializing as they had hoped. IP's not nearly as high as expected and production falling much faster than anticipated on the wells that have been drilled. Still money to be had but not as much as hoped for.

 

[hillsdown]

Mitch2, MR. HD is in the oil field on the perforating and logging side. Mostly all natural gas. Things got so bad here after break up that 2/3 of the companies shut their doors, not just closed for now ,but closed for good. Employees were locked out . Thank goodness hubbies company just reduced their staff by 2/3rds and made everyone staying take a pay cut.

It is picking up again a little bit finally ,and with predicted record low temps this winter for the US and Canada expect prices to sky rocket again and drilling to get back to business as usual.

Fingers crossed.

 

[lavacarancher]

But another reason to continue drilling are holding on to the leases. Depending on the contract.

That is exactly what's happening.

I agree. That's what they are doing. They may not produce now anyway depending on how the contract was drawn up. They may wait until prices go back up - and they will, before throwing the thing on line.

I can't tell you what to do if it's your well but my gas well is shut in right now. The reserves just aren't all that good to be giving it away so I instructed/asked the operator to just hold off for six months or so to see what happens to the price. Personally, I'd like to see $13/1000 again. :lol:

 

[lavacarancher]

By the way...the huge gas patch is south of me about 1.5 to 2 hours around Shreveport. A friend of mine in my R & D department just retired after his family sold mineral rights. Long ago, his family had a large cotton plantation and owned the majority of Shreveport. Last I heard, 75 descendents each received millions up front and signed a 20 year deal.

Get all you can up front cause I'm hearing (street talk) that the Haynesville is not materializing as they had hoped. IP's not nearly as high as expected and production falling much faster than anticipated on the wells that have been drilled. Still money to be had but not as much as hoped for.

Haynesville is tough drilling and logging. Temperatures very high, long horizontal sections. I wonder how they can do it for $2/1000.

 

[kenny thomas]

Drilling is booming just north of here. One company using 13 drill rigs now. Several other smaller drillers also. Most is directional drilling. My cousin is making a fortune just delivering the fuel and oils for the rigs.

 

[mitch2]

Drilling is booming just north of here. One company using 13 drill rigs now. Several other smaller drillers also. Most is directional drilling. My cousin is making a fortune just delivering the fuel and oils for the rigs.

Where are you and your cousin located? (loosely)

Michele

 

[bigbull338]

as for the gas drilling going on.the gas companies have the leases an they are drilling on them.im betting if they hitt gas they cap the well off for later use.i know trans canada is going full blast building an oil pipeline from canada to the gulf coast here in texas.

 

[kenny thomas]

mitch2, we are located in the SW tip of Virginia but they are also drilling in eastern KY and southern West Virginia. Seven trucks delivering fuel to the rigs, running seven days a week, 14-16 hours a day. Just the soap for the drill's keeps one small truck busy delivering. Servicing 23 rigs now and a few coal company's on the side. Get us some business, we need some money for a vacation.

 

[Alberta farmer]

Drilling in Alberta has been real slow the last year but there is going to be some shallow shale happening this year...mostly exploration. The rumor is there is a big shale play under most of central Alberta. There are also rumors of a huge expansion coming in the coalbed if prices improve a bit this year.
Our provincial government chased away most of the companies by raising the royalties last year and there might be a shortage of shallow rigs as they mostly moved to the Bakken shale in Sask.,Manitoba, North Dakota and eastern Montana.