Is all of the area around the new Forest Oil frac job part of the old IFNY lease? I am wondering if I should be checking on other operators in the area. Anyone have information on other well activity by different operators? Have there been any new "good" wells been developed in the target area?
If that were the case, we might have another indicator to consider.
DVN, MRO, DNR, EOG, KWK and some smaller co's have all busted in the area south of hwy 67. brings me back to the question I pose again and again...
..why does anyone expect that FST would have an answer that these others didn't? These other guys didn't just try one well in one area and move on. They drilled several wells and tries several areas and got very little. The best one can hope for, it appears, is a Crumley-Boucher kind of a well, which is economic, but not good enough to drill a bunch of bad ones trying to find that decent one.
There is a lot more to the story. EOG has not drilled a well south of 67. However, I think they are trying to get rid of their leases there. MRO admitted they were only interested with a big payoff and this wasn't worth their while. Denbury fracced all their wells too hard. We'll just have to see about Devon. You are right though. The area IFNY is in is no Johnson County. If someone is investing in IFNY because of the Barnett Shale play, it may be a BIG mistake. Time will tell.
All results in the vicinity have been mixed at best. There have only been a hand full of wells drilled. Mostly by fly-by-night operators. Mararthon doesn't count as that, but they admitted that they sought no outside advice with their wells,had bad results, and put their leases up for sale. Devon just fracced a well about 10 miles east of IFNY property. They said the results were positive. It was flaring a week ago. I guess time will tell. This whole venture is pretty risky.