Drillinginfo announced recently the addition of LandtracsTM in Goshen and Laramie counties in the highly prospective DJ Basin Niobrara. I figured I’d take a look at these considering they provide an extreme amount of insight and value as to what is going on up there. Companies are pretty mum about land operations because of the competitive environment. The two companies to be looked at in this blog are EOG and Samson Oil and Gas.
First, Samson. Followers of this blog have seen the many entries Samson related but here is a little background. Samson is sitting on about 40,000 acres in Goshen County. This position has been on the market and a couple months ago, Samson advised that they entered an agreement with a large public company to acquire 24,000 acres for a price of $61-$79 million dependent on a few conditions. The conditions include shoring up some acreage set to expire at the end of this year.
Below is a map of the 2010 Samson permits and the associated LandtracsTM. When zoomed in, they show the Samson permits are on tracts set to expire on 10/5/2010. This may be an indication of Samson attempting to meet conditions necessary for the sale. Seeing these Samson permits is a good sign for them considering obtaining permits in WY is not as automatic as obtaining permits in TX.
Now, EOG. EOG set off this Niobrara craze with the announcement of the 1000+ BOPD Jake well last year. Below are the EOG 2010 permits layered with LandtracsTM. One can easily tell that Lone Tree Energy is assigning EOG leases as shown in the pink. This tool can be used to see the extent of the EOG position and neighboring operator’s positions. You can tell when the acreage is set to expire and thus deduce where EOG may allocate their rigs. In a future blog I’ll detail the EOG operations in more detail in light of the recent conference call.
We’ll try to keep everyone up to date with new DI features with not only the Niobrara blog, but all other Unconventional Reservoir Blogs. In the meantime, for more Niobrara information, keep checking the DNA Niobrara Unconventional Update, all that is required is a DI login.
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