SAN AUGUSTINE, TX (KTRE) - San Augustine County is making huge news nationwide. First, an article just yesterday, in the Wall Street Journal. More to come in oil and gas trade magazines and here at home.
A very significant discovery was made in San Augustine County in the successful Haynesville Shale well. Devon Operations has an over 18,000 feet well that's flowing, flowing and flowing. In 24-hours the flow rate is about a million cubic feet of natural gas over 6,800 pounds per square inch.
That interprets very nicely for East Texans lucky enough to own the mineral rights. "At today's prices that comes to something like $132,900 a day in gross production. That's for the entire well." said Billy Lemons, a consultant in the industry. "An individual mineral owner owns 50 acres and lets say they got a quarter royalty under their oil and gas lease their part of is going to come to like, $3,500 a day."
And this is even better: potential pay off in months to come...over $11,000 a day!!
Now this is a story we'll definitely continue to follow. Another promising speculation is a well near Chireno in Nacogdoches County might have similar results.