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Permalink Reply by Jon Williamson on February 23, 2009 at 17:57

Therein lies the problem Parker,

As a landman with some flexibility, I take the path of least resistance as is human nature. Limiting a lease below a particular horizon is prudent. Limiting a lease above a particular horizon is somewhat arrogant and I always feel that person doesn't want to be leased. My thought are that they have listened to grandpa too long. I will explore the next section before really trying to make a deal with these folks.

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Permalink Reply by Bobi Carr ("parker") on February 23, 2009 at 18:01

Jon,

It just depends on what the landman happens to be saying. If he says there is no HOSS or CV because if there were it would have already been produced, then it is only reasonable to lease JUST the HS.

Just like if you are being told that the HS is NOT productive in a certain area then WHY NOT exclude it and be sure.

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Permalink Reply by Jon Williamson on February 23, 2009 at 18:21

Parker,

Excluding the HS is reasonable, else pay me more to include it. Keep in mind though operators invest millions of dollars to drill to the HS, excluding the upper zones is not really an option as far as they are concerned. They see the logs and of course want to develope any possible pay.

If there is no Hoss, Cv or LCV production nearby, chances are there is a good reason for that. I studied closeology early on. I based my mineral buying on that. Close..ology...if it aint close theres a good chance it aint there.

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Permalink Reply by The_Baron on February 24, 2009 at 4:17

Personally, If we are going to drill through a zone, we prefer to have the option of producing from that zone if the logs indicate a good show. I understand holding back deeper rights, especially if the o/g is going after a zone above the HA.

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