Ed. <just curious -- how much of your acreage do you believe is likely to get drilled out in a LT sub-$4 natty price environment?>
Oh my, no. Where did you get the idea my focus was on undrilled properties? Good heavens, I'm too old and conservative to take on that much risk.
Vast majority of my parcels were drilled in the 60s, 70s, 80s, or 90s and have been producing ever since. Settled production with a nice gradual decline curve. In fact, only one property has never been drilled.
AFA your article? Am much encouraged after reading it. Hope they're right and prices stay below $4 for at least a few more years.
To date? Less than 1/2 the capital I've allocated to mineral properties is invested. Not from lack of trying, since late 2008, either. It's very hard to obtain these properties at attractive prices. At the annual auctions, a year ago (per prior post, some time ago) prices were just ridiculous. Didn't buy a single thing!
At the other extreme, nailed down my best buys in Nov 2012 a few months after gas traded at $2/mcf. Why? Because the buyers became bearish and fewer came to bid up prices at the auctions. It's the same ole contrary thinking which works in the stock market.
Bottom line? Hope all the locals read the article you posted and don't show up at next weeks auctions..))
Cheers,
Iso |
