This interview validates everything I have been saying about Eagle Ford acreage, that it will see $30,000+ per acre and 30%+ royalty, sooner rather than later. Mark Papa clearly states in the video that EOG acreage is worth far more than the KNOC deal that was done with Anadarko. The simple truth is that the acreage EOG owns in the Eastern part of the Eagle Ford is in the overpressure oil window and the wells drilled there to date have daily production on average three times what is being produced from Maverick Basin wells. EOG acreage there is also a thicker formation, allowing for upper and lower EFS production zones. And don't forget, the KNOC deal is for Eagle Ford formation only on 80,000 acres and 16,000 acres in the deeper Pearsall dry gas formation. Landowner's should be keenly aware by now that much of the Eagle Ford acreage has multiple stacked pay targets. With the KNOC deal we are seeing other horizons being severed and sold. Landowner's should do likewise and negotiate Eagle Ford separately. To the best of my recollection, the majority, if not all of the previous high dollar deals done with foreign oil companies buying Eagle Ford acreage, the deals were for Eagle Ford formation only.
Anadarko, KNOC sign $1.55 billion Eagle Ford deal
Analysts pegged the value of the deal at about $13,000 to $16,000 per acre, representing some of the highest prices so far paid for acreage in that basin. The Eagle Ford is valued because it contains crude oil and natural gas that is rich in liquids that can be stripped out and sold at premium.http://www.comcast.net/articles/news-finance/20110321/BUSINESS-US-ANADARKO/
It looks now like it will come in over $18,000 an acre for Eagle Ford horizon only. The naysayers and the beggar-thy-neighbor landowners have given up the ghost.
ReplyDeleteGreat information. Our properties are between the wells drilled in Gonzales & Fayette Counties along the county lines of Waelder & Flatonia, Texas; what's confusing to many around Hwy 90 & IH-10 East is how land men have and continue to exclude certain landowners who either own their minerals 100% and/ or have current shallow production since 1941 before "pugh" clauses of 1947. These landmen and/ or middle men lease lands at a rate of $1,200 per acrea for 3 years with a 20-25% royalty. I'm under the impression that oil & gas exists abundantly below the Austin Chalk & Chorizo and the shallow depth of the current 2250'. I mean these fellas are next door, and across the road from our properties, but do not want to entertain discussing leasing with us who have held their lands since the 1800's and all their minerals in tact. Does anyone have any information worth sharing with those who are in situation such as I've decribed, and/ or maybe share information along the lines of existing production types or multiple heirs type properties? Thanks
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