Replies to This Discussion

Permalink Reply by Checkmateking on February 25, 2010 at 12:16

Why does he want to be the operator?

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Permalink Reply by d laurenson on February 25, 2010 at 12:19

I guess he has the $$ to fund the well and eventually wants more of the revenue. He offered us a lease about a year ago but he could never give any credible company that he had lined up to drill.

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Permalink Reply by FXEF on February 25, 2010 at 12:21

It is my understanding that whoever holds the unit orders will be the operator or at least controls who will be the operator.

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Permalink Reply by adubu on February 25, 2010 at 12:23

If landowner owes all his minerals he can pay for consultants, rig, etc and drill his on well if he has lots of money and enough minerals to make a unit. He would have to qualify to obtain drilling permit. Don't know why he would be in battle with CHK? But he should have the net worth to invest $10 million to drill & complete H well with all the liability that goes with it. If successful he could start his on small oil & gas company. If he has leased his minerals to CHK then he is blowing smoke because CHK has controll of the minerals under lease. Skip and all other GHS members have other thoughts??

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Permalink Reply by d laurenson on February 25, 2010 at 12:24

Chesapeake is unitizing but have been told that they may be withdrawing. Have been told that largest landowner nominates operator but that wasn't an atty.

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Permalink Reply by d laurenson on February 25, 2010 at 12:28

He hasn't leased to Chesapeake according to what has been filed. He dealt with Chesapeake for about a year probably two years ago and they finally pulled out. He cost a lot of us money when he wouldn't sign with them since we are smaller landowner and they wouldn't lease with us until they signed him.

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Permalink Reply by Checkmateking on February 25, 2010 at 12:38

This guy is an idiot if he thinks he can just up and drill a Haynesville well, IMHO, sounds like a blowhard.

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Permalink Reply by Skip Peel - Mineral Consultant on February 25, 2010 at 12:54

The largest landowner does not determine the operator of the section/unit. The State of Louisiana, Department of Natural Resources, Office of Conservation has no required minimum acres under lease in a section for an application for unit status. However if that landowner owns a significant percentage, they can in affect keep any company from developing the section for economic reasons if they refuse to lease. The cost of the well is not cheap but then you have to build a connection to market (pipeline). All this requires right of way agreements and associated site work and facilities. I guess a large landowner holding a majority of acres in a section wanting to participate as a working interest might take this route in order to get an operator other than Chesapeake but I have to agree that this is highly unusual. And frustrating for the other mineral owners in the section.

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Permalink Reply by Checkmateking on February 25, 2010 at 13:43

Oh it could be done, but I wouldn't even attempt it unless I had a minimum net worth of a 100 million dollars, what if the well blows out and you get a bill from Wild Well Control for a few million? There are a 1000 things that could go wrong.

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Permalink Reply by adubu on February 25, 2010 at 12:54

unless your minerals are undivided interest in same land big landowner your minerals should be contiguous with land other than his, so you should be able to lease to whoever has leased next to you away for the land that big landowner controlls. Talk to others around you--who did they lease to?

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Permalink Reply by d laurenson on February 25, 2010 at 14:10

40% is leased to CHK with several expiring in the next several months. Petro was offering lease but has now pulled out. I think some landowner has signed with the large landowner. Thanks for the input. Hoping for a successful well as is everyone else. Concerned about large landowner doing it though.

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Permalink Reply by Spring Branch,mineral owner on February 26, 2010 at 1:54

You can rest assured that if the large landowner drills the well, he will not get a top notch result. He will get a mediocre well as many of the smaller, less experienced Operators have done. His efforts would be better spent trying to negotiate a minimun of a 14 stage frac from Chesapeake and a no cost royalty.

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