We have been contacted by Petrohawk wishing to lease our land in the City of Mansfield. Initial offer is $5,000 / acre. I have some questions:

1. Has anyone else been leasing there?

2. Is that the "right" number in this environment?

3. How do you rate Petrohawk as a production company to deal with?

Tags: Lease, Mansfield, Petrohawk, S17

Views: 91

Replies to This Discussion

Les,
Why would CHK drill the DEG 27 #! as a vertical? Most everything they've done is a horizontal lately.
Henry. This is not the only vertical that CHK has drilled lately. And yes, it did catch my attention also as it is a bit unusual. On Sonris, search wells by organization and you will see the wells I refer to.
Skip,
You are right... the well in 35-12-11 is also vertical. Interesting...

Also, what are they looking for at 20,000 feet with well #239339?
Henry. Just a guess but I think they may be looking for whoever made the typo on the well permit. LOL! The applicable unit order would have to include more than one section to accommodate at roughly 7.000' lateral. I do not believe there is a combined section unit in this township.
Henry, I chalk it up to acreage holding as the clock is ticking on some leases.
Les B,
I guessed that, but was hoping there might be another explanation. Ouch.
Double ouch!
Why indeed? Would ANYONE drill a vertical well into the Haynesville? Simple answer: because it is a quick way to hold those minerals forever.

On Dec 17, 2008, Chesapeake applied for unitization on S27 (HA RA SUK), S34 (HA RA SUL), and S35 (HA RA SUM), T12N R11W. A conference to discuss this application was held on Wednesday, January 7, 2009. Did you attend? Please note this was an "expedited hearing" -- it is what the oil companies use to greatly reduce the time interval involved in the unitization process -- and it is SPECIFICALLY DESIGNED TO ALLOW A RAPID PERMITTING AND UNITIZATION PROCESS so that one or more leases in the subject area won't expire and have to be re-negotiated.

NOTE: ANY TIME YOU SEE A REFERENCE TO "RULE 8", the oil company is trying to slick and slime someone. That is the only notification you will ever get that they are trying to get an expedited procedure done and prevent some mineral owner(s) from obtaining a fairer share of their production.

If you had gone to the Pre-Application Conference, you would have had an opportunity to ask about the unitization, about their plans for the units, and about the wells they plan to drill. Simply by going to the Conference, you delay their process by about 30 days. (Are you going to stop the well? Almost certainly not, since the company has a lot of minerals to protect and needs to drill the well.) And if you found out they were only planning to drill vertical wells (to hold the leases), you might have objected--the simplest way is a registered letter to the Commissioner! According to the OOC's guidelines, a Unit is that amount of acreage that can be economically and effectively drained by ONE unit well. And I don't think that anyone will seriously argue that any vertical well will effectively drain a 640-acre Haynesville Unit.

The Powell 35 well (SN 239423) was permitted on Feb 4, 2009, so NOBODY went to the Conference.

BOTTOM LINE:
1. REQUEST THOSE CONFERENCES. GO TO THEM. ASK QUESTIONS!!
2. IF YOU SEE A REFERENCE TO "RULE 8", SOME MINERAL OWNER IS ABOUT TO GET NAILED!
JB,

Brother-in-law has a few acres in city limits of Mansfield. Petrohawk has offered $5,000 per acre. He has been
"hounded" by Twin Cities to lease for $5,500 per acre. He says he doesn't answer the phone any more when he knows it is Twin calling. Bunch of thugs. Advice -- stay with Petro.

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