Replies to This Discussion

Permalink Reply by Steve on September 10, 2014 at 13:10

I really don't understand why they did this lease(one land owner well) in the 1st place if the landowner only has 1100 acres. If he had a lot more acreage they could have held all of it with this one well, but if his acreage is just 1100 acres they didn't gain much because that would have been a typical unit size for La. TMS anyway. Maybe someone understands the rational and can explain. I understand other land owners around the well objected, but not SLC(Melancon).

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2014 at 13:37

At this point in the play, non-unitized wells are common.  Here is a specific example for the last 6 GDP LA wells.

TMS RA SUA;Blades 33H

SLC Inc. 81H

Beech Grove 94H

Kent 41H

TMS RA SUC:Verberne 5H

Williams 46H

4 out of six are non-unitized TMS lease wells.  Go to the database and pull up the well plats,  I suspect they all look similar - one large land owner.  A number that I have worked on have large acreage interests in multiple locations and are leased to multiple TMS operators.  Owners of large mineral interests generally have a high degree of interest in breaking up large contiguous tracts into multiple leases each with a drilling commitment.  Some are able to dictate how much of their acreage will end up in a unit.  Here is a link to the SLC well plat, Page 10.

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

Permalink Reply by Curious George on September 10, 2014 at 14:22

The SLC mineral owner had a deal with GDP from my understanding.  He has a rather large construction company and negotiated that he would do 6 pads, and maintain the small parish road that goes to the entrance for the SLC. 

Permalink Reply by Steve on September 10, 2014 at 15:19

Skip, Does this practice have any negative implications for surrounding landowners?

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2014 at 8:18

With a TVD of 13800' the SLC is one of the deepest TMS well completed and producing so it could have less oil and more condensate in the production stream.  The WH-1 Completion Report is still not entered in the database.  When it is there will be more detailed information than the data in the SONRIS Lite database or the GDP corporate announcement. 

It is common in other oily unconventional hydrocarbon reservoirs for there to be an "oil" window updip (the shallowest TVD wells), a "wet gas" window (downdip, slightly deeper) and then a "dry gas" window (further downdip, the deepest TVD wells).  The best wells are often in a zone where the "oil" window converges with the "wet gas" window.  Those wells have oil and condensate of good commercial gravities but also sufficient GIP (Gas In Place) to exhibit much higher formation pressures.  If those depths are "over pressured" (greater pressure than would be normally calculated for their depth) it is due to the presence of gas and the wells flow at a higher rate.

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2014 at 15:24

Steve, I can't think of any.  If the rock is good operators want all they can get, they want the development rights provided by a lease and they want their leasehold organized by drilling & production units..  They want to avoid UMIs as much as practical.  And they want to maximize the benefit of shared infrastructure.

Permalink Reply by Steve on September 10, 2014 at 15:29

That is good to hear. Thanks for all your efforts to educate us. I appreciate the opportunity to learn more about this industry from someone with real experience.

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2014 at 16:37

You're welcome, Steve. The universe of informed mineral owners grows daily thanks to the Internet.  When Keith invented GHS there were few Internet sites dedicated to educating mineral owners.  Now they are numerous, some better than others.  I favor a website format over that of a blog or a Facebook page.  And an administrator that damps down personal invective and creates an atmosphere where land/mineral owner and industry members stick to the nuts and bolts of the site focus.

Since GHS, and Keith's family of energy focused websites, are the means by which he makes his living, I periodically like to point out that members may show their appreciation and help ensure the future of the various web platforms by making a donation.  Everyone likes to have their efforts acknowledged and a donation is an affirmation that the members find value in GHS.

http://www.gohaynesvilleshale.com/donate

Pass the word!

Permalink Reply by Steve on September 11, 2014 at 1:31

Will do. I didn't realize GHS had a donate page until you pointed this out. Keith has done a good thing here for landowners. I hope those who have benefited will remember GHS when their 1st royalty check comes in.

Permalink Reply by Skip Peel - Mineral Consultant on September 11, 2014 at 1:46

Thanks, Steve.  Yes, I think that would be appropriate.

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