Fred – the engineer coming out in me… Pipe size, design and normal operating pressure, where is it starting, where is it going, when do you plan to start construction and what is the completion date would answer most all of my questions. I wasn’t raising the ‘pressure’ question as a safety matter… more an operations one. But the closer that pipeline gets to my barn, my house, where my kids play… the more it would concern me. Later – Buzz
Buzz, I have not gotten any paperwork yet, but will see what it says; pipe will carry gas. What operating pressure causes one to worry? Is there a common pressure where anything above that requires extra precautions?
r / Fred
berrytc,
You are very close to us. We are in Block 58 Sections 15-16. We have a 3 year lease with Petrohawk and have just ended the first year. Unfortunately I don’t think much is going on in our area. Still hoping.
Marian – likely neither the signature date nor the recoding date signal when a lease will end. The lease itself should state the beginning date, thus it would end ‘x’ years from the beginning date, unless held by production, extension granted, option exercised, etc. Later – Buzz
Comstock Resources, Inc. Announces Sale Of West Texas Properties
[http://phx.corporate-ir.net/phoenix.zhtml?c=101568&p=irol-newsA...](http://phx.corporate-ir.net/phoenix.zhtml?c=101568&p=irol-newsArticle&ID=1796703&highlight)=
Later – Buzz
Thanks Buzz for your response. We shall see what happens in the next few months. So does a lease end per the month it was recorded or signed?
Marian, Buzz is correct, and also look for continuos development clauses that may extend the lease a little.
Comstock paid Eagle $331 million for the Reeves properties. Sold for more than twice that.
I have a question, the presentation brochure of Rosetta Resources about “Permian Entry in Core of Wolfbone Vertical”
Mentions, “145 MMBOE of oil rich repeatable inventory (40 - acre spacing) provides long term productivity/growth.”
The 145 MMBOE is of what? The total expected production from all the acreage purchased, or production from each forty acre block? Or something else entirely?
I must admit ignorance and so am asking what these statements mean, and then of course, how they should be interpreted.
I guess I am asking, just what is Rosetta Resources hoping they can get for production per what unit?
Thank you, Lynn
Wade is of course right. I would also add that if you don’t know the gas to oil ratio, you will still be in the dark. Gas could be 90% of the BOE figure and have no more value than the 10% that is oil.
Million barrels of oil equivalent. Google BOE to see what it means.
What I do not understand is what the 145MMBOE is a measure of. I understand that it is a thousand thousands Barrels of Oil or Equivalent, but of what area is it a measure.
In other words, I do not understand what Rosetta Resources is stating concerning their Reeves County Wolfbone holdings.
Lynn – I can sympathize with where you’re coming from… I’m trying to reconcile the meaning of the 145 million barrel-of-oil-equivalent claim myself. I’m putting this table out more to invite discussion than as a claim my interpretation is correct. I listened to the conference call as well as reading the Rosetta Resources news release and still don’t ‘get it’… Hope this helps raise some comments. Later – Buzz
Lynn – the right had columns got cropped… here they are. Later – Buzz
< More Believable
Lynn,
Definition of ‘Barrel Of Oil Equivalent (BOE)’
A term used to summarize the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil. There are 42 gallons (approximately 159 liters) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700 kilowatt hours (kWh).
Clint Liles
Thank you Wade and Buzz. I checked the lease and it states the starting date of the agreement. This means the lease will end this August. There is a clause for a 2 year option. So…do we need to worry that we are not getting much response from Petrohawk at this point knowing that there is a permit for two wells. Buzz has indicated that there is drilling action close by. We are getting other lease offers once per month now for the last 3 months. Thanks again for your perspectives for us “newbies”.
Thank You Buzz.
I was trying to figure out what the 145MMBOE referred to, apparently the estimated amount of hydrocarbons in oil/ gas per square mile/section.
And then, how they came up with the 145 since Eagle had mentioned two separate stacked fields with a potential of 213MMBOE together.
Lynn, it could also mean the total in the acreage they bought. SEC allows you to only list de-risked oil and gas so that investors don’t see huge numbers that recovery cannot achieve. Much of the oil in place is still considered tight. You’ll notice that the company still sees potential. Sarah
Thanks Sarah.
I am still learning. I really don’t know how to interpret Rosetta’s presentation. I don’t know if they mean a potential production of145MMBOE from the acquisition or an acquisition that holds an estimated 145MMBOE in place, per square mile, subject to what can be extracted.
I mean, I don’t know how to ask as I am still learning the terms and the meanings.
Lynn
Thanks Wade. So I assume if BP, the huge company that bought Petrohawk (aren’t they the ones who were involved too in paying the settlement for the gulf oil spill?) is serious about the permit, then we should see “something” related to the 2 year lease option before the end of the lease?