Section skipping

Everyone around including me are leased by Encana. Could someone tell me why they have activity in the section in front of me and on both sides of me but not in my direct section?

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Permalink Reply by weatherman on June 17, 2010 at 7:56
If this is the document: http://dnr.louisiana.gov/CONS/CONSEREN/hearings/2010/07JUL/10-715&a... boundary lines are very important.
Permalink Reply by Renee Rains on June 17, 2010 at 8:42
weatherman, this is the same letter I got. When you look at this map section 16 is outlined with a dotted line. I the upper right hand corner is my land listed under Nelda Renee Graves Rains. I have 35.4 acres. The on the edge of my land is a solid line. What does both of these mean? Also in section 16 is reads CV RA SUN HA RA SUP what does that mean?
Thanks
Permalink Reply by Two Dogs, Pirate on June 17, 2010 at 9:07
You are on an Interested Parties List (IP List), this is why you received this information. You are not in this unit. The company forming the unit is required to put adjacent land owners on notice to the unit being formed. The notice creates 2 drilling units, the Cotton Valley Reservoir A Sand Unit N and Haynesville Reservoir A Sand Unit P.
Permalink Reply by keb on June 17, 2010 at 8:52
Les B, thanks for responding, but does section 5 have a well waiting for completion ? Like i said we live out of state. I spoke with a landman with el paso who said there was activity from petro hawk in section 32, which is adjacent to section 5, and that they were going to go laterally underneath section 5 to draw out gas etc. Does this mean we in section 5 won't get paid? or? what's the land leasing for in our area?
Permalink Reply by Les Bamburg on June 17, 2010 at 11:31
Keb, yes - the following well was drilled from a surface location in Section 32 but the horizontal lateral was drilled in Section 5. The well will produce natural gas from Section 5 and only those mineral owners in Section 5 will share in the production. The well is currently waiting to be frac'ed, completed and placed on production.

I do not have information regarding current lease rates in this area.

Petrohawk, Murphy 5 #H1 Well, Serial #240650, S32(5)-T14(13)N-R15W
Permalink Reply by keb on June 17, 2010 at 15:23
thanks Les, you are awesome! Thanks for being so informed and keeping up with what's happening to help us uninformed folks. One more please....do we need to be leased to get paid or just wait ?
Permalink Reply by Les Bamburg on June 17, 2010 at 16:44
Keb, you have two choices.

1) Sign a lease. You would receive the bonus payment and a royalty percentage of the revenue allocated to your acreage. For example if you have a 20% royalty rate and 32 acres in a 640 acre unit, you would receive 1% of the revenue from any unit well.

2) Do not sign a lease. You will receive your 100% share of any production (revenue) after the operator has recovered the cost of drilling the well and any operating cost. The operator just retains your share of revenue to pay for the costs. From the above example you would receive 5% of the gross revenue less expenses after the well cost has been recouped.

So in either case you should receive some payment.
Permalink Reply by keb on June 17, 2010 at 17:07
thanks Les. Now we must decide if we wait. If well doesn't do well, we lose. A chance we take. Does anyone know of a well nearby that's done/doing well?
Permalink Reply by Les Bamburg on June 17, 2010 at 17:44
Keb, here are some nearby wells.

El Paso, Jack R Gamble 11 #H1 Well, Serial #239320, S11-T13N-R15W, DeSoto Parish, 15,390 Mcfd, 18/64" Choke, 6600 psi Flowing Pressure

El Paso, Weathers 14 #H1 Well, Serial #239598, S14-T13N-R15W, DeSoto Parish, 22100 Mcfd

El Paso, Anette Greene 22 #H1 Well, Serial #239458, S22-T13N-R15W, DeSoto Parish, 15651 Mcfd, 18/64" Choke, 6425 psi Flowing Pressure

El Paso, RF Gamble 24 #H1 Well, Serial #238471, S24-T13N-R15W, DeSoto Parish, 14600 Mcfd

Chesapeake, Pankey 35 #H1 Well, Serial #240154, S35-T14N-R15W, DeSoto Parish, 17736 Mcfd, 22/64" Choke, 7434 psi Flowing Pressure
Permalink Reply by Renee Rains on June 17, 2010 at 9:57
two dogs, thanks for the info but what does the CV RA SUN HA RA SUP mean? So this means they are getting to drill in section 16 but that will not affect me at all?
Permalink Reply by Two Dogs, Pirate on June 17, 2010 at 10:11
They have to notify everyone inside the unit and adjacent land owners of the unit being formed. I spelled out what the CV RA SUN & HA RA SUP in my last post. The notice gives all interested parties notification of the units to be formed. The company will notify mineral owners in a perimeter around the outside of the unit, this is to give those who may oppose the formation a chance to speak out either for or against the formation of the unit.
Permalink Reply by Les Bamburg on June 17, 2010 at 11:36
Renee, a unit application is not the same as a well permit and does not mean a well has been proposed or about to be drilled in Section 16.

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