Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2011 at 10:38

Wells may be permitted and drilled as a "lease" well in advance of a unit order.  They are listed as "non-unitized".

Permalink Reply by Craig Wascom on August 2, 2011 at 17:26

Does this document indicate a change in unitization. I have heard of newer units being larger in size

.http://ucmwww.dnr.state.la.us/ucmsearch_070611/UCMRedir.aspx?url=ht...

 

Permalink Reply by Joe Aldridge on August 3, 2011 at 0:36

Craig,

That concerns me. They are doing unit sizes all over the place. I went to the hearing back in March for the unit that Anadarko was asking for in Avoylles or Pointe Coupee and the land owners did not want to challenge  them on unit size. The attitude I saw was we just want someone drilling and it  does not matter what the unit size is. Austin Chalk can have a very long life but after the IP the well may produce for years at a very low rate. Spread that over these large units and the land owner will get very little yet the company can sit and hold large areas under lease with very limited production and thus keep other operators out. This is definitely a concern of mine. Also, at some point in the future I think that someone will file suit against the State for allowing all of these different size units. The HA was developed with a standard 640 acre unit size but not down in this play. It definitely creates an unfair production advantage for people in the smaller unit as compared to landowners in the larger units. Can someone claim discrimination because of the size of the unit at some point in the future?

Permalink Reply by Skip Peel - Mineral Consultant on August 3, 2011 at 1:16

South LA. has traditionally had odd sized and shaped drilling and production units based on geology and exploration.  North LA. has traditionally had units formed based on geography, sections.  There is no basis for a suit against the state.  Joe you are stuck on your past experience with being HBP and it is not one that should be applied too broadly to other situations.  The bottom line is that there needs to be some mineral code revisions and/or some judicial rulings to help protect the interest of mineral owners but operators will still make development decisions based on economics.  If the Austin Chalk is productive in a location, Anadarko isn't going to drill one well and go away.  They may not drill as often as royalty interests like but there is no recourse as long as production in paying quantities is maintained.

Permalink Reply by Joe Aldridge on August 3, 2011 at 2:10

Skip,

That is what I don't understand. These are supposed to be geographic units but they are using geology to define them before drilling. There is an incongruity there. I agree with your last sentence. Unless the DNR gets it right at this stage a lot of people are going to be screwed. Or at least feel that way at a point in the future.

Permalink Reply by Craig Wascom on July 11, 2011 at 6:56

Does anybody know if Anadarko is responsible for the recent leasing in section 27?

Permalink Reply by Craig Wascom on July 19, 2011 at 13:54

Went by the Lacour site today the roads are in did not see much else.

Permalink Reply by Joe Aldridge on July 24, 2011 at 23:04

Craig,

Sonris does not indicate that either well has been spud. I'm guessing that Anadarko is waiting for a rig to be available. Just keep an eye on things and let us know whats going on.

Permalink Reply by Skip Peel - Mineral Consultant on July 26, 2011 at 2:46

Depending on the volume of work in the appropriate LOC district office, it is likely that the well will not show as spud on SONRIS until after the well is drilled and the rig is gone.  Anyone wishing to track drilling progress would need to subscribe to a paid rig report where the rig owner reports to the reporting entity as opposed to the operator of the well submitting reports to the state.

Permalink Reply by Joe Aldridge on July 26, 2011 at 2:58

Skip,

The Lafayette District stays on top of the SONRIS reporting and it is generally current. That may not be the case with the Shreveport District. I have never followed the Scout Reports in that area.

Permalink Reply by Skip Peel - Mineral Consultant on July 26, 2011 at 3:04

Joe, the Lafayette district is as short handed as Shreveport.  Once the drilling gets underway they will find themselves in the same position as District Six.  At least you should hope so as that means Lots of drilling however keep in mind that due to the state hiring freeze all the DNR/LOC offices are short staffed.  The only way any of them keep current is to have a low level of exploration activity in their district.

Permalink Reply by Joe Aldridge on July 26, 2011 at 3:15

Yes, I understand.

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