1 MCF = $1?

Let me get this straight...

A natural gas well is listed on Sonlite's web page and under the heading Lease\Unit\Well Production it lists 100,000 MCF produced in one calander month. Is the property owner looking at $100,000 if they have a 25% royalty share and the going price is $4 per MCF?

 

 

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Oil & Gas ProPermalink Reply by Terry L. Antee on March 31, 2011 at 9:51
Only if they own all of the unit.
Permalink Reply by William on April 1, 2011 at 3:54

Is there a way to see who owns a unit online, perhaps thru Sonlite?


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 1, 2011 at 5:24
Yes, but it's not easy.  And "own" is not a good way to put it as the instances of one company owning all the leases in a unit are relatively few.  A company applies to be the "operator" of a unit.  A unit order conferred by the state gives that operator the legal means to Force Pool all mineral interests within the unit boundary regardless of who holds the lease rights and includes those interests unleased.  William, if what you want to know if what company holds the unit order for a particular section, just ask.
Permalink Reply by William on April 1, 2011 at 8:20

I guess I would like to find a map that shows where the units' boundries are drawn for the Haynesville play in De Soto Parish.  Do such maps exist?  Or, if there are no maps, how does one know if someone else is sharing the gas produced at your well on your land that you leased out?  Do you need to know how many acres you have the mineral rights to in a particular unit and do some arithmetic?  As I understand the word "unit" it refers to the surface area above where the natural gas is being drawn out.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 1, 2011 at 8:23
You want the unit plat from the application.  Give me the section-township-range and I'll post a link to the application with plat.
Permalink Reply by William on April 1, 2011 at 8:46

009   12N  12W

 

I believe those are correct.

Thanks!

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on April 1, 2011 at 8:57

Long Petroleum didn't put much detail in their unit plat. See page 4.

 

http://dnr.louisiana.gov/assets/docs/conservation/hearings/2008/08-...

 

Long Petroleum applied for and received the unit orders.  They later designated Chesapeake as the operator of their units.

Permalink Reply by William on April 1, 2011 at 9:01

Great.


Thanks again!

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