TEXAS (NORTH CENTRAL, EAST AND SOUTH)

Randy Nichols — Thu, 06 May 2010 14:00:00 GMT

Companies continue to reposition their assets around the country in search of the perfect portfolio of unconventional shale. This can be seen as companies like Shell, Newfield and Goodrich with acreage in the Barnett, Woodford or Haynesville make acquisitions or joint ventures in the Eagleford. We are also still seeing the influx of capital in shale plays from large international companies. All of this has created a flurry of acquisition and divestiture due diligence for landmen. Hiring of company landmen in Houston has picked markedly up in the last 3 months as budgets start to expand. It looks like we should have a slow but steady recovery this year with more landmen being hired in all phases of landwork.

In RRC District 5(Barnett Shale), Chesapeake and XTO are the most active operators. Many of the smaller operators have not yet signed new rig contracts waiting on gas prices to rise. Landmen are busy conducting title curative to shore up title on drill sites and units. It has been reported that an estimated 200+ landmen have been hired to work the Barnett since the first of the year.

The activity in RRC District 6 for the “Texas Haynesville” continues to expand with XTO leading the way. Devon, NFR and Chesapeake are keeping a modest drilling schedule. The courthouses in the area are packed with landmen running title and preparing runsheets. Samson, Anadarko and Cabot are busy developing the Cotton Valley/Travis Peak reservoirs as well as the deeper Haynesville. In the Deep Bossier Trend XTO, EnCana and Gastar have had a lot of success.

In South Texas RRC Districts 1 and 4, the Eagleford activity seems to be taking center stage with less companies focusing on the conventional Wilcox and Vicksburg formations except for infield drilling programs. New companies from the Midcontinent and Rocky Mountains are showing up in the Eagleford play for the first time. Leasing activity in the Eagle Ford is very competitive but selective as a result of soft gas prices. Many companies are focusing on the oil leg of the Eagleford with oil prices north of $80/BBL. The number of rigs drilling in the Eagleford has increased with Petrohawk, St. Mary’s, and EOG leading the activity. Other companies with significant acreage in the trend are ConocoPhillips, Murphy, Hunt, Chesapeake, Common Resources and Pioneer.

The size and number of field land crews is starting to increase and we are seeing landmen from the Barnett move to the Eagleford and Haynesville plays as the demand for landmen increases. In-house landmen, with contract experience and management experience are still in demand and their hourly rates vary depending on whether or not the project is due diligence or higher levels of land work including negotiating and drafting agreements or managing in-house projects.

6-May-10 9:00 AM

TEXAS (NORTH CENTRAL, EAST AND SOUTH)

Cheyenne Acree — Fri, 29 Jan 2010 17:00:00 GMT

In my last update, I opened with “there seems to be light at the end of the tunnel as oil and natural gas prices are moving up and there appears to be a lot to talk in Washington about using natural gas as the “bridge fuel” of the future”. Well, with the recent purchase of XTO by Exxon, the “talk” has turned to the “walk”. Of course, this will not be the last large acquisition or merger of a company with large domestic unconventional gas reserves by companies like Exxon with deep pockets. This is great news for the domestic energy business and especially for landmen. In addition, gas prices continue to rise to $5.60/MMBTU, gas storage continues to shrink and North American rig rates have increased to 1131. So what does this mean for landmen working in Texas Districts 1- 6, we expect to see activity increase in the shale plays like the Eagle Ford, Barnett and Haynesville as well as the tight gas plays like the Bossier and Cotton Valley.

In RRC District 5(Barnett Shale), XTO is the most active operator with Chesapeake and EOG not far behind. There have been several transactions in the Barnett by companies selling down their interest or selling out of the play entirely for other areas. Companies attempting to buy or renew leases report walking away from areas where the landowner’s or municipalities terms are too onerous. This includes acquiring rights-of-ways for pipelines.

The activity in RRC District 6 for the “Texas Haynesville” has escalated with the recent discovery by Devon of its The Kardell Gas Unit 1H well that tested at 30.7MMCFD. The courthouses in the area are packed with landmen running title and preparing runsheets. Samson, Anadarko and Cabot lead the way in development of Cotton Valley/Travis Peak reservoirs. In the Deep Bossier Trend XTO, EnCana and Gastar continue to develop the play but at a slower pace.

In Deep South Texas, drilling activity revolves around the conventional Wilcox and Vicksburg formations and the unconventional Eagle Ford. Leasing activity in the Eagle Ford is brisk with new companies entering the area every week. The number of rigs drilling in the Eagle Ford has increased with Petrohawk, St. Mary’s, and EOG leading the activity. Other companies with significant acreage in the trend are ConocoPhillips, Murphy, Hunt, Common Resources and Pioneer.

The size and number of field land crews is starting to increase slowly. We expect to see companies like ours that have established renewable energy and Rights-of-Way groups, train and hire more landmen to work on its wind and ROW projects over the next 12 months. In-house landmen, with contract experience and management experience are still in demand and their rates range from $60.00 to $75.00/hr depending on whether or not the project is due diligence or higher levels of land work including negotiating and drafting agreements or managing in-house projects.

Randy H Nichols, CPL

29-Jan-10 11:00 AM

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TEXAS (NORTH CENTRAL, EAST AND SOUTH)

TEXAS (NORTH CENTRAL, EAST AND SOUTH)