I posted about a month back about the talks between Penn and Devon, and now they have officially announced the plans to buy Devon's Lavaca acreage..also some it is in Dewitt and Gonzales counties I believe. The link WI has on his post will direct you to the Penn presentation.
Also as I had stated before Penn is also looking at acquiring Sanchez units "H" and "I". However, Sanchez wants all or none deal for the Prost units, and all of its other Fayette units as well. So we will see if Sanchez decides to deal with Penn or not. IMO I do not see that deal going through at this time.
At first Penn was only looking at certain Devon units...Roosevelt, Nitro, Jeffries...but Devon also wanted a all or nothing deal, which included the Sabine units that Devon bought of the Berkenhoff and Olsovsky units. Even though the Berkenhoff has a strange shape to the unit, Penn will now use it to run laterals through an adjoining unit. Also as I had reported before Penn leased up all the tracts between the Chickenhawk/J.Berger units and Oslovsky unit this year..mainly in the JWilder, Mary Lewis surveys...although Delago did creep in and get some of those tracts. This is also the place Devon's Big Five unit was suppose to go.Devon also has a nice water tank they built off of CR 261 that now Penn will have. Most of, if not all of the Lavaca Devon units only have 1 HBP well, so this is great for Penn since most of these Devon units are very close to the "pressure boundary" they are drilling close to.
Now for Penn's units east of hwy 95, this will delay Penn going into those units again, as they get into the Devon units closer to the pressure boundary.
There were also 2 units Capstick and Shadrack ,that Devon permitted and built the pad, but never drilled that Penn will get. Devon went back and re-leased the tracts...have not heard what Penn's intentions are on those as yet...these 2 units were a little east of NFR's Sustr unit off of FM 532
GeoSouthern is leasing property on each side of FM 615 east of SH 77, just north of Schulenburg. Rumor has it that they will permit a well just off of SH 77 and south of FM 615.
I'm trying to only show permitted wells on my map (not that it's that exact in the first place) but I decided to show the 'FSNN' well just this once so we can all get a perspective of where it may be. I'll probably remove it in the next revision.
Not sure if this was posted yet, but Sanchez sold its "Marquis" properties to Lonestar Resources out of Ft.Worth. This would be all Fayette and Lavaca holdings.
And even though I can't cut/paste it for some reason, particularly read the last paragraph on page 1 where the CEO says that they will '...enhance the value of these assets by better managing the producing assets and by applying Lonestar's technical abilities to drilling new wells on the properties.' Amen to that.
John, I'm not really sure but on the surface it doesn't look like you'll be included but don't rely on my opinion, I'm not a landman. See attached unit maps.
I've attached my latest map that includes the 'FSNN Well' that eja mentioned above. All of the rest of the red pins are actual permitted wells that may be of interest to our area. The yellow pins are known leases showing perimeter, more or less of what's happening.
Thanks WI, I look at this site probably 90% of the time on my IPhone and I hate the way it works compared to the PC. I don’t see your attachment on the IPhone but I do see it on the computer.
Wildhorse just released it's quarterly earnings and had big news on the chalk development to the East of Fayette. They drilled a well in Washington County in the chalk - about 5,000' in the vertical section, big frac and came on at 2,300 BOE/d. Here's the full presentation: WRD Earnings Presentation (go to page 5). This should be great news for the overall chalk trend which appears to extend from Lavaca through Fayette into Austin and Washington counties. GeoSouthern is permitting wells all over the area and the rumor is that the ones they've drilled so far are looking like 30 BCF wells. It's now looking like this is the real deal - the third Austin Chalk Renaissance!
Go one page further to 6 of 36 and look at the footnote for Net Acreage Positions. That info is from Investor Presentations, which means that only publicly traded companies are included. So privately held companies such as GeoSouthern are not even on the map. That will make it look even better. Pretty exciting.
Wildhorse said that 2,387 boe/d average they reported was 26% oil and 36% NGL's. Some companies, usually not public ones, have stretched things converting to boe's but reporting 26% as oil seems to say it averaged 621 bpd of oil/condensate plus a bunch more NGL's. Wildhorse hasn't filed a completion or preliminary production report with RRC yet. It will be interesting to see the straight volumes they report versus these boe's.
In their conference call today Wildhorse said they plan to spud two offsets to this new well before the end of the year but when an analyst tried to pin that down they wouldn't give any details. They indicate control of 100,000 acres with Chalk potential but talk like it's third on their priority list behind the EF in South Texas and what they have going in North Louisiana.
