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Q: Enron Oil and Gas drilling in northeast Erath County, TX ( No Answer,   1 Comment )
Question  
Subject: Enron Oil and Gas drilling in northeast Erath County, TX
Category: Miscellaneous
Asked by: trixieroscoe-ga
List Price: $100.00
Posted: 02 Aug 2005 14:52 PDT
Expires: 04 Aug 2005 14:26 PDT
Question ID: 550974
We own ranchland property, a total of 1600 acres in the northeast
corner of Erath County, TX, which is next to both Hood and Palo Pinto
counties.  We are in the second year of a 3 year mineral (gas) lease
the Enron Oil and Gas (EOG).  Several gas wells have been drilled by
various companies within a 10-30 mile radius of our property.  All of
these are producing wells.  We appear to be within the Barnett Shale
gas play.  Our questions are:  1) To what degree has gas pipeline and
infrastructure, allowing for further drilling, been placed in our area
by all companies? 2) What time frame should we expect for pipeline and
infrastructure to be placed in northeast Erath county?  3) What would
be a projected date for EOG to actively drill in this area,
considering the acreage of the lease?  4) What are the better websites
to track the progress of pipeline, infrastructure and drilling in our
area by all companies? (especially free websites if any)
Answer  
There is no answer at this time.

Comments  
Subject: Re: Enron Oil and Gas drilling in northeast Erath County, TX
From: d0ofus-ga on 02 Aug 2005 18:53 PDT
 
EOG (it's not Enron anymore since it was spun off as a separate
company and has no connection to enron, to the overwhelming approval
of their employees)says in their second quarter conference call that
they have 490,000 acres in the play, and that most of their current
activity is in Johnson County.  You can listen to the call at
eogresources.com.  They drilled 2 wells in Erath last year and are not
drilling there now.  When you say "several gas wells have been
drilled" remember that those wells cost well over $1MM each and unless
they will pay back that and more there won't be more drilling or a
pipeline, so it has to be an economic gas well, not just a well that
made some gas.  490,000 acres divided by 100 acres or so per well
means they have to drill 4900 wells to develop all of their acreage. 
In the next two years they can't possibly drill more than 300 or so,
and those will be in the areas where they have had some encouragement
(ie Johnson County mostly).  They were way too aggressive in their
leasing and spent way too much money.  Plan on getting your acreage
back without it being drilled and getting the chance to lease it
again.  Best place to get real info is from the company websites. 
While you have to look out for the wordsmithing since this info is
aimed at investors and they don't want to say anything that will be
detrimental to their stock, everyone in the industry reads everyone
else's website regularly to get the latest info on activity and even
geology and engineering.  They have to brag to the investment
community, so there's some good stuff, but they don't want to tell the
competitors everything, so it's a game.  Try websites for EOG, Devon,
Burlington Resources, XTO, etc. and go to the investor relations
section.  You can also just Google "barnett shale".  Good luck!

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