CXPO well results - Crossy, you are right, very positive development here.
What is interesting is that the leasehold values from what I have heard have jumped significantly - since the well was announced. Sort of a mad rush to the county to get 'into' the play.
So looking at acreage valuation alone CXPO has done well, to say nothing of the well and uphole zones. Also have heard the uphole looked as good as the 30 mmcf/d haynesville, but that is all speculative until they complete.
We are updating our take, will post the link here in the next few days if SI lets us. For what it is worth, we are a bit biased due to our position :)
CXPO should have an earnings call in the next several weeks, will be very interesting to hear. Devon said a lot of good stuff, as did Chesapeake and Cabot, about the haynesville play in general. Encana has a call Thursday and I expect they will discuss haynesville also.
CXPO has 12,000 acres in the prospect, all is not offset the well but is in the county and nearby. Market cap is $50 million. To get a load of what those acres might be worth, put a pencil to these numbers (cut from another site, I think the numbers are very high, but who knows??):
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Price Of Poker Higher In Haynesville Shale In Southern Part Of Texas
The price of leases left to be leased or to be bought from others holding leases will go higher now because of the huge Devon well in San Augustine County, Texas. Prices could go as high as $30,000 - $50,000 /acre because that is the price that has been paid in Desota Parish,La this year. That Parish doesn't have all the payzones that are present in Sabine, San Augustine and Shelby Counties of Texas. |
