Replies to This Discussion

Permalink Reply by Les Bamburg on June 17, 2010 at 3:03

Bryan, are speaking about multi-stage frac's (12-18 per lateral) in two horizontal laterals at +/- 12,000 ft depth?

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Permalink Reply by Renee Rains on June 17, 2010 at 8:09

I have a question! If you are leased to Encana can you top lease to another company for the more shallow Bossier shale or does Encana own the right until your lease is up or if they drill and if Encana would dril and get a well it is theirs for life right?

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Permalink Reply by Walter Phillips on June 17, 2010 at 10:35

It depends on the depth ranges involved in the mineral rights. If there is older existing production in the area in shallower formations, the operator of that production might only own the minerals to a depth limit just below his deepest production and Encana might own the deeper minerals that would include the Haynesville. I have not seen a case, yet, where there was separate mineral ownership between the Bossier and the Haynesville. Skip or Les B might have had more experience with this and seen something different.

If Encana makes a successful well, then any mineral ownership they hold in that unit is held by production for the life of the production. At some point after their production ceases, and I'm still not completely clear on the time frame, the mineral ownership will revert back to the surface owners...again, Skip, Les or anyone else with better knowledge please correct me.

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Permalink Reply by Les Bamburg on June 17, 2010 at 11:42

Renee, most operators will drill and produce from the Haynesville Shale which will hold both the Haynesville Shale and the Bossier Shale. Also, both formations are included in the same zone and unit.

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Permalink Reply by Jack Blake on June 17, 2010 at 16:06

Here's a question form you......IWhen I leased I put s stipulation in my addendum page that said I reserve everything above the "base of the Cotton Valley" formation. Does this mean the oil company will have to give me more bonus if they plug back to say the bossier or chalk after the HS plays out?
Jack Blake says hhhhmmmmmmmmmmmmmmm

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Permalink Reply by Les Bamburg on June 17, 2010 at 16:18

Jack, sorry but my opinion is no for the Bossier Shale since it is below the base of the Cotton Valley. The operator would have to drill a separate horizontal well for the Bossier Shale and that would likely occur before the last Haynesville Shale production.

Now the shallower Austin Chalk formation would require a separate lease agreement and bonus payment.

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Permalink Reply by Jack Blake on June 18, 2010 at 1:24

Cool thanks Les. We have been blessed with this HS. I just want to keep informed..
Thanks Jack Blake

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Permalink Reply by Steve P on June 17, 2010 at 12:48

I would give Renee a more direct answer - making sure you give no warranty, you can top lease anything and everything you've got to someone foolish enough to pay you money for rights likely to be held by the existing leasee. But since the rights the top-leasing party are likely to obtain are pretty contingent, then they would likely reflect that in their bonus offer. So you might get a small bonus for a top lease, which could deny you a bigger bonus later if your HS rights become available. If the top lease was for a good bonus, you might not have much to lose (making sure you aren't making any warranty about the rights that may or may not become available upon the expiration date of the existing lease).

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Permalink Reply by Renee Rains on June 18, 2010 at 2:44

Thanks for all the information from you guys!

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Permalink Reply by Parkdota on December 13, 2010 at 11:44

Looking over the LDNR site Encana listed geological formation depths on a well in Desoto as the following:

BO - 10,011

Mid BO - 10,951

HA - 11,729

I know the BO and HA are separate areas for production but are the BO and Mid BO separate as well?

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Permalink Reply by Les Bamburg on December 13, 2010 at 12:11

Parkdota, the Mid-Bossier Shale is just the portion of the Bossier Shale interval that can be commercially developed due to the formation parameters.  So references to a Bossier Shale producer really means the Mid-Bossier Shale.

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Permalink Reply by ALongview on December 13, 2010 at 12:29

Les, How thick is the Mid-Bossier compared to productive areas of Haynesville Shale? Do we know yet whether the decline is roughly the same?

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