I had been working with Triad to send me a lease that the rest of my family was sent and paid for last summer. Last night I got an email from Triad with the following news. I won't post the entire email, just the troubling part.
Triad: We were advised this morning by Southwestern that there would be no additional leasing in Columbia County for the foreseeable future. They have written letters to every lessor that has a lease in hand notifying them that the lease has expired. We are now employed on a day to day basis. This was very bad news. I was hoping to be in Magnolia for several more months.
Well, we're on the LA side of the state line, but just barely. Time will tell.
Barbara and Baron,
I get Baron's point also, but the renewal at least indicates they aren't regarding the property as "goat pasture" yet. Thanks for your good wishes Barbara, and I'm still hopeful.
There are plenty of penetrations of the Brown Dense in East and West Carroll. Additionally, each parish has a whole core though the Brown Dense. Albeit not as many holes as Union. The reason for starting in AK is that you have to start some place. It does not mean that it will not ultimately produce at commercial rates. We only have a handful of holes that have been drilled and completed horizontally. To date and in my opinion LA looks a lot better not only on current results but also on what I think I know about the geology. The key is what I think I know? No one has a magic ball, not EXXON, SWN, and surely not me. If oil and gas exploration was an exact science the first hole drilled by SWN would have been 1000 barrels plus a day. This is a process and the risk is commensurate with your financier