I have friends in both counties who say they have been approached about leasing but that the landman could not divulge the company he represented? Has anyone else been contacted
That is good news. Hope more info comes available as to this activity
My cousin and I were messaging about this last night. He and I share in the inherited minerals and are hoping this time around with the LNG conversion plants going in on Texas coast that there is more interest in Duval and Jim Wells with dry gas. Guess time will tell
Mark, I am so glad you are still active in this board as you have always been helpful. With the new LNG plants going up on Texas coast, will that mean more drilling in dry gas areas of south Texas like Jim Wells and Brooks Counties
The LNG needs should result in more drilling in dry gas areas - but that focus will be in areas like the down dip Eagle Ford and Haynesville Shale (E Tx / N La) where large untapped resources are known to exist.
"Shale Plays" will be the main beneficiary of the LNG need.
But even with the new LNG plants, gas prices are not keeping up with the recent oil price upward movement. This doesn't benefit dry gas drilling even the LNG plant demand.
Lower gas prices make positive economics for individual wells more difficult to attain.
The problem with the Jim Wells and Brooks County areas are that there are no prospective dry gas type plays. Venado tried to develop a play in this area and failed miserably (four horizontal wells with grossly uneconomic results).
With that being said, there may be undrilled deep (15,000'+) prospects in your area what may be targeted by operators to see if they "work". These would be structures in sections like the Wilcox, Vicksburg and other Tertiary formations (all not shale plays).
Plus there may be some smaller, shallow prospects that operators will go after due to better economics tied to higher oil prices..
Sorry to be a wet blanket as to this opinion. But as always, this is just my opinion and others may see this differently.
And I always value your opinion, Mark. Thanks for the info