Investment property For Sale with producing gas minerals

Run Sheet completed with mineral ownership confirmed from deeds traced to August 1806

Producing mineral lease held by SWN/SEECO

Has stately southern style home on 27.30 acres

Producing Mineral value = $14,300 x 27.30 acres = $389,961 + home value $329,500

 (Combined purchase Total is $719,461)

Call: 501-728-2170   Cell: 501-733-7103

email: Dan@hamiltondowns.com

Arkansas oil & gas

Excerpts from state and local news wire:


XTO Energy Announces Fayetteville Shale Leasehold Acquisition
Thursday April 3, 8:00 am ET

FORT WORTH, Texas, April 3, 2008 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE: XTO - News) announced today that it has entered into a definitive agreement to acquire producing properties, leasehold acreage and gathering infrastructure from Southwestern Energy Company (NYSE: SWN - News) for about $520 million. The purchase includes 55,631 net acres of Fayetteville Shale leasehold and expands XTO's position in the shale play to more than 300,000 net acres. "XTO's shale play strategy is focused on growing our acreage positions in the right geographic and geological locations across the premier shale basins. This acquisition expands our visible growth potential in the Fayetteville Shale," "Given our engineering assessment, we expect the acreage, which is contiguous to our core development footprint, to hold resource potential in excess of 1 Tcfe. With the pipeline infrastructure already in place, our immediate plans include using four drilling rigs in 2008 and at least six rigs in 2009. We expect proved reserves attributable to this acquisition to grow to 160 Bcfe this year and at least 325 Bcfe by year-end 2009. Overall, our operational teams are dedicated to making XTO a top producer and value creator in the Fayetteville Shale."


Chesapeake CEO: Economic benefits of Fayetteville Shale drilling to exceed expectations
Wednesday, Apr 16, 2008

The economic impact of natural gas drilling in the Fayetteville Shale play will exceed expectations, and the state should consider forming an endowment with the proceeds, the CEO of Chesapeake Energy Corp. said Tuesday.

A University of Arkansas study this year estimated the shale play would generate $17.9 billion and more than 11,000 jobs for the state's economy through 2012. "We're about to make that completely irrelevant I think, with what we and others in the industry are going to do,"

Chesapeake is the second-largest operator in the Fayetteville Shale play and estimated that natural gas companies would spend between $75 billion and $100 billion in Arkansas during the next decade and potentially find 20 trillion cubic feet of natural gas, an amount that at current natural gas prices would be worth roughly $200 billion in future revenue.

The Legislature overwhelmingly approved Gov. Mike Beebe's proposal in a special session this month.

Beginning Jan. 1, the tax will increase from three-tenths of 1 cent per 1,000 cubic feet to 5 percent of market value, with some temporary reductions and exemptions. State revenues from the tax are expected to eventually grow from less than $700,000 last year to more than $100 million.

Chesapeake and other gas companies operating in the state agreed to support the tax increase after negotiations with Gov. Beebe and said Tuesday he was satisfied with the tax hike, although not necessarily happy about it.

Despite the increase, the company still plans to more than double its number of rigs in the play from 12 to 25 and drill about 300 wells per year in the state, which Chesapeake first announced in March. McClendon estimated the company would spend more than $1 billion in Arkansas annually "for as long as we can project."

The impact "will potentially transform this state into an economic powerhouse of the mid-South," Mclendon said, as long as the regulatory, legal and tax environments in Arkansas stay competitive with that of other nearby states with similar shale plays.

Chesapeake Energy


SEECO, the first company to successfully drill test wells, has been at the forefront of the companies that have been making substantial investments in developing the Fayetteville Shale Play. Preliminary estimates, calculated by CBER researchers, of the economic impact of Fayetteville Shale Play investments made by SEECO on the six Arkansas counties from 2003 through 2005 showed economic multipliers of around 1.2. During that period, SEECO direct expenditures of over $158 million in leasing land and mineral rights and drilling activities were responsible for total economic activity of over $190 million in Cleburne, Conway, Faulkner, Johnson, Van Buren, and White counties.

NEWS RELEASE


 

SOUTHWESTERN ENERGY ANNOUNCES E&P ASSET SALE

Proceeds to be Used to Fund Capital Programs


 

Houston, Texas – April 3, 2008…Southwestern Energy Company (NYSE: SWN) announced today that its wholly-owned subsidiary has entered into a definitive purchase and sale agreement with XTO Energy Inc. for the sale of certain oil and gas leases, wells and gathering equipment held by the company in its Fayetteville Shale play for approximately $519.6 million in cash.  The sale includes 55,631 net acres, or approximately 6% of the company’s approximately 906,700 net acres in the play as of December 31, 2007, and approximately 10.5 MMcf per day of production from the Fayetteville Shale as of March 17, 2008.  The acreage is located in the southeast portion of the company's focus area. The transaction is scheduled to close in the second quarter of 2008.


 

“The sale of this acreage is in keeping with our focus on present value and our strategy of rationalizing our assets to fund our capital program,” stated Harold M. Korell, President and Chief Executive Officer of Southwestern.  “Results have been improving in recent quarters in the Fayetteville Shale project, our James Lime drilling looks promising, and we are now drilling our first Marcellus Shale test.  This sale, along with our planned utility and potential Permian sales, will meet our 2008 capital needs and position us well as we move into 2009.  We expect 2008 to be another great year for Southwestern.”


 

Merrill Lynch is Southwestern’s sole financial advisor in connection with the transaction.


 

Southwestern Energy Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering and marketing, and natural gas distribution. Additional information on the company can be found on the Internet at http://www.swn.com

 

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