blanco-dee

San Juan Basin Royalty Trust: Time to Jump the Gun

Asked one of my buddies in Farmington - the shale play is in the Mancos shale,

more shut-ins on the way,

only 6 rigs operating

Considering the overages to come as storage maxes out in the US and Canada, I'm waiting for the carnage unfold before i touch any nat gas trusts,

keep yer' powder dry,

BDO

San Juan Basin Royalty Trust: Time to Jump the Gun

I'm not clear on which formation you are talking about for a shale play - I would be interested in hearing which, and if horizontal drilling will be used in development, is it the Lewis shale?

My experience with the San Juan Basin comes from too many years in Charmington NM,

my understanding is that following the Fruitland CBM development it has been changes in well spacing in 2002 which led to the more recent upswing in production, where spacing in the fruitland doubled (4 wells per section=160 acre spacing) and 80 acre spacing in the conventional formations from 160 acre spacing. We were told that it was all about "Maximum Recoverable Reserve".

my general impression has been that the San Juan Basin has been in decline, and these efforts are directed to getting the last gasps of gas out of the ground. Right now, every driller I know is looking for work,

I'd love to hear they've figured out how to boost production from any formation up there, and I still can't believe the US DOE gave Conoco-Phillips millions of dollars for a demonstration "CO2 sequestration" project, (I think it was in the 30-8 unit) when they would have done it anyway to boost their existing production, with an existing CO2 line already in place at their doorstep, acquired from the Burlington acquisition.

love to hear about the shale play, the I can call my old driller buddy and see what he's heard,

BDO