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Permalink Reply by Skip Peel - Mineral Consultant on August 23, 2023 at 11:53

Use these links to view the completion data on the four wells.  The links will not last forever so save them to your favorites if you care to keep them.

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

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Permalink Reply by Prosperity on August 23, 2023 at 14:17

Thanks so much for the info skip, I see that the wells are active and producing but that's about all that I really understand in that aspect ..lol.😆.. In layman's terms can you give me your opinion of how you think these wells are producing...

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Permalink Reply by Skip Peel - Mineral Consultant on August 23, 2023 at 14:25

They all look like normal, long lateral Haynesville wells.  Of course, the production will be allocated across the three sections (units).  SU57 is Section 21, SUK is Section 16 and SUI is Section 9.  You'll have to check each well to see the allocation percentage.

LEASE\UNIT\WELL ASSOCIATION HISTORY

EFFECTIVE DATE	END DATE	LUW CODE	LUW TYPE	LUW NAME	REPORTING PCT	PRIMARY LUW FLAG
04/29/2023		618481	2-UNIT	HA RA SU57;	39.58	Y
04/29/2023		615731	2-UNIT	HA RA SUK;	42.38	N
04/29/2023		615822	2-UNIT	HA RA SUI;	18.04	N

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Permalink Reply by Prosperity on August 23, 2023 at 15:41

Not sure what you mean about allocation, but I have 15 acres in section 21...overall would you say that the wells are producing good.

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Permalink Reply by Skip Peel - Mineral Consultant on August 23, 2023 at 15:48

The total well production is allocated to each section based on the percentages shown on the SONRIS Well Scout.  In the example that I posted 39.58% would be allocated to your Section 21.  42.38 percent would be allocated to Section 16 and 18.04 percent to Section 9.  Your eight digit decimal interest in Unit HA RA SU57 would be reduced by .3958 for the production on this one well.  You are only paid on the portion of the lateral that lies in Section 21.  Yes, these are good wells.  I just wish the price of natural gas was higher.

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Permalink Reply by Prosperity on August 23, 2023 at 16:06

Ok...thanks so much for the explanation...I think understand what you mean about the allocation now. I guess ..3958 is better than .1804 but having .4238 would be paid the most

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Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2023 at 0:43

More of the well production would be allocated to Section 16 but .4238 would still be applied to the unit decimal for each of the royalty lessors in that section.  Each unit gets its share of the production volume and each mineral owner within that unit has their royalty paid based on their unit decimal.  You will see this math reflected on the royalty statement.

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