STEVE HEROD: SMART ACREAGE ACCUMULATION IS KEY TO PLAY SUCCESS

Abstract

A 500-acre block in a prime area is worth "way more than a scattered 500 acres" over 20 sections, he said. Is the land close to the pipeline? "It doesn't do any good to have all that acreage if you can't get the gas out."

Having the right land broker is also necessary. Integrity and confidentiality are especially important in the early days of the play, as is experience. "You need someone who's been around the block a little bit. You don't want a bunch of trainees who should be selling shoes somewhere."

"We spend a lot of time talking on porches to guys to find out how many kids they really had and where they are," says [Steve Herod]. "You have to use judgment--title is not always perfect. It's prudent to accept some risk at times."