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Permalink Reply by Daniel Frazier on April 20, 2022 at 7:05

ok. Many thanks Skip.

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Permalink Reply by Daniel Frazier on April 19, 2022 at 5:00

I am planning to send my demand letter to the operator when the curve is landed and drilling ahead in the lateral. Do UMO's ever compare the well cost statements they receive from the operator or is this something that is considered privileged?

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Permalink Reply by Skip Peel - Mineral Consultant on April 19, 2022 at 5:17

Haynesville operators have to submit a well cost form to the state in order to qualify for their severance tax abatement.  That form will eventually be available in the database.  My interest in the cost is one of how economic this far eastern edge of the fairway may be in the Ashland Field.  The well decline curve and the well cost will have a direct bearing on the interest of operators to develop that area.

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Permalink Reply by Daniel Frazier on April 20, 2022 at 7:24

Thank you for this reply. Aethon got stuck and P&A'd serial 253123 HA RA SUN;ROWELL 16-21 HC. If I read correctly, they skidded over and went to a larger OD casing program to solve the issue. I will try to determine if it is safe to assume that P&A well costs are spread to one or more of the producing wells in the well cost form.

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Permalink Reply by Skip Peel - Mineral Consultant on April 20, 2022 at 7:50

A P&Aed well would not need a cost form as there will be no severance tax involved.  I don't think that those costs could be included in the cost of another well but operators regularly do pull such shenanigans.  I'd certainly like to know if that were ever the case.

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