Replies to This Discussion

Permalink Reply by Shaye on May 27, 2011 at 7:27

I say it's not over til the fat lady sings!

Permalink Reply by Lrb2brnot2b on May 27, 2011 at 16:09

When I bought this property 20 years ago it was under lease at the time.  I received 1/2 mineral rights up front.  There was never an attmept to my knowledge to drill or produce anything on it or in this section.  Since 10 years past with no HBP,  I should own 100% of the mineral rights.  That being said,  you  know why I would like to see e/p companies take interest and produce the area.  The trend maps all show that the Eagle Ford,  (Austin Chalk,  TMS) or whatever you want to call it,  runs through this entire area.  I think like you,  someone will snatch it up and drill it with intentions to produce.  I just don't understand why there has not been any 3D done here yet?  

Permalink Reply by Renee Rains on July 19, 2011 at 6:55

Lrb... do you think it is possible that they are doing like the companies of the Haynesville shale did and not complete the well and cap it so that they could screw people over with their $100.00 per acre leases?  I would pay close attention if anyone shows up offering low leases!

Permalink Reply by Lrb2brnot2b on July 19, 2011 at 14:10

The independents are all low on funds.  They paid a premium for some leases in the Haynesville and are now finding it hard to get a return on their investment.  The big boys are now moving in and buying up the small fry on the cheap.  These big boys are looking long term and will clean up on what the small fry started.  In my opinion,  I don't think you will see much leasing in the area unless it is for the intent to find oil, and yes, they will offer chump-change if they do try to lease.  I think they will first drill up the leases in the Haynesville before they spread to other plays. 

Permalink Reply by Two Dogs, Pirate on July 24, 2011 at 5:04

Renee a capped well will not hold a lease. They have to produce the well to hold the lease.

Permalink Reply by Lrb2brnot2b on July 24, 2011 at 7:04

Two Dogs,  Just what was their purpose in drilling a 4800 foot hold and, putting the dirt over it and sneaking out unbeknowing to most everyone that lives around here??  If it was core samples they want,  I will give them some for free. 

Permalink Reply by Two Dogs, Pirate on July 24, 2011 at 7:50

Not knowing the ownership of surrounding tracts, and this being an Olympia Minerals well, then I would think that this is a Boise tract that Olympia owns minerals on. Many of these big timber tracts are contiguous and could cover vast ammounts of  land. The 10 year time clock is running against these tracts that don't have producing wells. Olympia wants to keep their minerals so they will work a deal to have a well drilled to interrupt the 10 year prescriptive period and set the clock back to zero.

Permalink Reply by Kat Bloomfield on July 24, 2011 at 8:41

I recall a decision out of South Louisiana that addressed the issue of whether a well drilled without any reasonable expectation of production interrupts prescription.  There were seven or eight factors, I believe, that the court looked at in ruling that prescription was not interrupted, one of which lack of a legitimate geological reason.  Had it posted up here some time ago with a list of cases of interest. 

Permalink Reply by Two Dogs, Pirate on July 24, 2011 at 9:28

KB, there  is are was a case involving Martin Timber and the Pardee Co in Bienville Parish around Castor that had to do with this same thing. I think that the well Pardee had drilled was 2000 feet or less. I would think 4800 feet would make a  better case.

Permalink Reply by The_Baron on July 26, 2011 at 5:34

I agree Two Dogs, seems that at least getting through the wilcox in that area would be nessessary.

Permalink Reply by The_Baron on July 26, 2011 at 4:56

We ahve done several prescription wells, and a good Geologist can present good data that would make it appear that a reasonable expectation of discovering minerals is there. Just because you end up with a dry hole doesn't mean you didn't havea good reason to drill.

 

Most of the time a company will come to us, say we have X acreage, can you find a prospect.  We then evaluate the area and see whats there. ITs hard to beat in court,

Permalink Reply by Lrb2brnot2b on July 24, 2011 at 11:45

Two dogs,  are you saying that these vast tracts of surrounding lands would have the clock reset to zereo,  even in other sections where Olympia Minerals owns the minerals on this timber company land?  This sounds like the timber company is taking a $crewing on being able to lease. Also, why would it include all contiguous tracts of land?  Maybe timber company likes being $cr$e$d.

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