Replies to This Discussion

Permalink Reply by Rick Sanders on March 24, 2011 at 3:36

anything going on in Bellvue, La I have 30 acres right on rt hwy 157

Permalink Reply by TAURUS on March 29, 2011 at 2:28

I got a call back from CHK home office yesterday regarding the expiration of our lease in Sec. 11, T18N, R12W. For now, they are letting these leases expire. Ours expires on May 15th I guess. So that answers that. While it would have been nice to go into production, or get renewed for another good chunk of money it's also a chance to refine the lease agreement when (if) they come back around to lease again when prices are higher.

 

If they're letting us expire with a producing well right next door then you can bet they're letting all that stuff to the North of us fall off as well. I'll be curious to see if Petrohawk decides to hold their leases on the adjacent large tracts of land or not. My guess is no based on their EUR map.

Permalink Reply by Skip Peel - Mineral Consultant on March 29, 2011 at 2:41

Sorry to hear it, TAURUS.  Producing wells are not always profitable wells.  The Conger well will take years to recover it's cost.  The economics are just not favorable for this area.

Permalink Reply by TAURUS on March 29, 2011 at 3:04

Thanks Skip. It's all good though. It was a blessing even if nothing more comes of it than the original lease bonus. Probably the best deal of my life and in the end I didn't have to give up anything for it.

 

Some day, maybe when NG prices are higher and the math works out, we might get produced. But until then, this let's me move forward with building the new house and not having to worry about where I might need to let them put a drill site. If the house ends up in the way, there's room on the other side of the section line for a site.

 

You're right about the Conger well with it's current production. It was better than some, but still not a money maker when you ran the numbers and factored in lease bonuses and drilling expenses. I'm surprised they didn't at least stick some verticals in these sections to HBP them though -even if they paid shut-in royalties. Seems like it'd be cheaper than re-leasing the land down the road. Maybe not.

Permalink Reply by Skip Peel - Mineral Consultant on March 29, 2011 at 3:34

Shut-in clauses rarely are effective for more than two years.  The official news releases of the major shale players leave no doubt that they think that depressed nat gas prices will remain the norm for longer than that time.  And no prudent operator drills vertical wells except under rare circumstances.  To do so would invite litigation concerning the definition of prudent operations and/or production in paying quantities.

Permalink Reply by TAURUS on March 29, 2011 at 5:08

CHK's march investor presentation seemed to hint strongly at a turn around in 2012 when certain infrastructure comes online. At the same time, I've heard more than one analyst say that NG is 5 years out from price stabilization.

 

Didn't HK drill a vertical well in Hammel's Park in Shreveport to HBP the leasehold? Seems I remember a press release on that. Did they shut that one in I wonder? Or did they turn it to sales?

 

Allowing these leases to expire should hopefully bring some clarification to those who didn't lease the first go around and help them appreciate that these things aren't a given, and they're certainly based on a section by section basis.

Permalink Reply by Skip Peel - Mineral Consultant on March 29, 2011 at 5:22

I think the time to price stabilization is dependent to a large extent on domestic economic recovery and federal energy legislation.  No, the Hammel well is a horizontal.  Petrohawk has drilled most of their wells with a "spudder rig" for the vertical section and a larger top-drive rig for the horizontal.  There is lapse between rigging down the first and rigging up the second.  The Hammel well has been in continuous production since May, 2010.  Never shut in as far as production listed on SONRIS.

Permalink Reply by TAURUS on March 29, 2011 at 7:20

Yep, the economic recovery is important but expansion is even more important if we're going to create more demand. We need an energy policy ASAP.

 

On the Hammel well.... I hadn't pulled it up. I was out there when they had the smaller vertical rig but missed them coming back in and completing it.

Permalink Reply by pat kairschner on April 7, 2011 at 15:54

Isnt it wonderful to have skip the independant landman give us all his bs. He wants to lease you next time for 100.00 an acre. No one knows when gas will go up and to predict it is stupid. China wants our gas,so do other countries,but as long as the oil companys keep politicians in office we are not going to see our gov do shit about are dependancy on forgien Oil. Wake up america we dont need to be dependant  on anyone. all we need is our gov behind us and thats not going to happen as long as special intrests run this country.

 

Permalink Reply by TAURUS on April 15, 2011 at 9:05

I'm just seeing this comment now. Pat, you're out of line with your comments regarding Skip. Many of us here consider Skip to be an asset to the Forum and to us individually. He has been very helpful to me in clarifying various matters via drilling reports etc.

 

In the future I'd appreciate you not using my threads to attack the character of other Forum members.

 

Thanks,

TAURUS

Permalink Reply by SnoflkSouth on August 6, 2011 at 8:04

Taurus...My family's lease of 50 acres will expire the end of August, 2011.  Have just reviewed this posting and am curious if you have any information on Sec. 35 & 36, Township 20 North, Range 13 West, Bossier Parrish.   We originally signed a 3/2 year lease for $200 per acre in 2006 (before we knew about the Haynesville Shale).  If we are offered a new lease, what is the current dollar range per acre and royalty percentage should we expect to receive?   Thank you for any input!

Dorothy

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