Many keep asking why are those Tarrent County - Barnett Shale leases are so important to the HMGP business strategy and why does HMGP keep alluding to these Tarrent County leases in a number of the recent HMGP PR's since 12/18/07:
As reported by Energy and Capital
August 28th, 2008
The Barnett Shale:
The Most Important Gas Field in the U.S.
The Barnett Shale geologic formation stretches over 5,000 square miles from Dallas to Fort Worth.
Many geologists believe that the Barnett Shale could possibly be the largest onshore natural gas field in the U.S., with over 2.5 trillion cubic feet of natural gas.
This isn't your typical conventional gas play, though. The Barnett Shale deposit is a tight-gas reservoir, meaning that it has low permeability. In other words, gas flows through the shale at a much lower rate than elsewhere.
And while it's true there had been some huge obstacles in extracting the gas from the Barnett Shale, two critical technology developments have changed everything:
Horizontal Drilling and Hydraulic Fracturing have opened the door to production in the Shale... and in the last few years, companies involved in the Barnett Shale have experienced tremendous growth.
AND NOW another gas company player (with some big $$$$$ backing it) enters the fold in the Barnett Shale / Tarrent County play - Vantage Energy
Jim Fuquay
Star-Telegram Fort Worth
August 26, 2008
Shhhhhhhhh! We've got big news
The Southwest Fort Worth Alliance reports in an e-mail to members that it is "THRILLED TO ANNOUNCE" that it has endorsed a "SUPERIOR OFFER & LEASE" from Vantage Energy and its land company, Caffey Group. The group just isn't so thrilled that it wants to release any of the terms. So until that moment, know that more than 20 neighborhoods in the alliance, which claims more than 6,000 acres, have an offer that tops the $25,000-an-acre bonus and 25 percent royalty on a three-year term that we previously reported. It "also exceeds all other offers in contractual concessions and in environmental and safety considerations," the e-mail says. Informational meetings and signings are to be set during the next two weeks.
Vantage is a Denver company started by Roger Biemans, a former top exec with Encana Oil & Gas USA. According to a Denver business magazine, Biemans in December said it raised $460 million from Quantum Energy Partners of Houston, Carlyle Group, Lime Rock Partners and Riverstone Holdings. Riverstone also is backing Titan Resources, the Fort Worth company that has won several large neighborhood endorsements in recent months. Titan also uses Caffey for land services.
Keep in the back of your mind these HMGP Barnett Shale - Tarrent County leases and the fact that HMGP has stated in a number of prior PR's that these are and / or will be required leases for the on going gas drilling development for the Big O&G companies already established in the Barnett Shale Play.
Kels
