Fayetteville Shale Making Money For Arkansans
Fayetteville Shale Making Money For Arkansans
The Fayetteville shale formation may be one of the largest natural gas fields ever found in the country.
Consider it buried treasure in the hills of Arkansas, a natural gas field stretching across 4,000 acres right through the heart of the Natural State.
Locked in a 300 million year old rock formation is enough natural gas to potentially produce more than a billion cubic feet each day.
Ricky Wood says, "I think that they had a pretty good idea that this has always been here. Maybe that's what pushed up these foothills and things of that nature. But there never was the technology to actually get at it."
Wood is the Superintendent at the Pangburn School District just north of Searcy. Recently a Chesapeake Energy rig hit natural gas on his property, just one of their 104 wells currently producing in White County.
Wood say, "Actually the place where they drilled was the roughest part of it. It was an old hillside there that wouldn't even grow much grass. So they actually took an area that was pretty non-productive and as far as I'm concerned made it very productive."
"This well has been producing since, I believe it's May of last year", Jerry Feagin and his wife Shirley receive royalties from this single well on their property.
When you get close, you can actually hear the gas flowing through the well head. Jerry says that's the sound of money in the bank. Without mentioning exact figures, the royalties on this one well add up to more than he and his wife's social security benefits combined.
Feagin says, "It was unbelievable. I've never been to the mailbox and got a check I didn't work for."
But in spite of their new found income, the Feagins aren't moving to Beverly Hills, they haven't bought a motor home or even planned an exotic getaway.
Jerry says, "No we haven't yet Mike. Like I said, we get a great benefit out of it from being able to help our children and grand children. We've done that some since the royalty has been coming in. We do plan to do some stuff ourselves as the royalty continues to come in."
One royalty recipient told me a rising tide lifts all ships and that may be the case in White County when it comes to the Fayetteville Shale Play, helping out businesses not even related to the oil industry.
Bill Paxton says, "Because of just the flow of money. Anytime that you see any part of a segment doing well in an economy, you see the whole economy taking off and doing well."
Paxton is a banker in Searcy. He says the money flowing into White County from all the drilling and producing wells eventually flows into area restaurants, clothing stores and other businesses, like the sub-contractor who builds the gates to well properties.
Paxton says, "Now you're looking more at people who are looking to set up trusts. They're wanting to put funds into those trusts.
They're wanting to do things like that so, you know, we've had to change a little bit of our investment practices and everything. And as far as making sure we have all the products and services that will take care of the needs of the people in the county."
It's still so new to everyone. Geologists say Rick Wood and the Feagins' wells will produce for 20 maybe even 30 years.
If that's true the Fayetteville Shale will end up lining the pockets of thousands of Arkansans.
Rick Wood says, "Maybe some of the large landowners will, I hope they do get rich. But a lot of us, it's going to be a very nice added income. It's kind of like finding a 20 dollar bill in your pocket of your pants that you haven't worn in a while. You really didn't expect it, but here it is. So it's a great situation."
http://www.articlesbase.com/investing-articles/fayetteville-shale-making-money-for-arkansans-4359346.html
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