Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on October 1, 2008 at 13:16

This was a great deal also, the driller looked like a member or ZZ Top. He told me in a red neck voice "I could make a shit pot load more money if I worked offshore but they would want me to cut off my beard to work for them" "There ain't no barrooms out here and I like to have a drink after work".He also said "I seen water wells that had more gas than this well".

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Permalink Reply by Bobi Carr ("parker") on October 1, 2008 at 14:20

Hi Jim,

If the operators gets approval to commingle gas, do they decide payment based on where the perforation is located at the time of production. In other words, if two different companies have each formation leased, would the operator pay company A for the Haynesville and months or years later pay company B for the Cotton Valley formation when it is perforated?

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 12:47

msfva, that's 50 total SWEPI unit applications for the Oct. 28 public hearing! Prior to these apps, going back to the first of the year, SWEPI had applied for 39! If you include Encana in the total year to date (37), thats 126. Should we add in Indigo (8), also? 134 HS units total! Chesapeake has 43. Add in Goodrich (22) and that's 65. There's also some association with Matador at least on some N. Caddo wells. Add 8 for a grand total of 73. As a disclaimer I want to state that I do not tract individual HA well permits. Just HA/Jur unit applications. As one of the members asked earlier in the thread, "Who is SWEPI?" And they like it that way. Though SWEPI and Encana do not generate a lot of media, they are HUGE players. And their focus on the southern portion of the HS play should be of great interest to mineral owners in S. DeSoto, Red River, Sabine and Natchitoches parishes.

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 13:04

Correction. The 14 SWEPI HA units in the Pleasant Hill Field is scheduled for the Nov. 13 public hearing. msfva, thanks for the heads up. There are numerous new applications that have been added to the Nov. 6 and Nov. 13 hearings. I last updated Tuesday. When I get my spread sheet fully updated, I'll repost.

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 13:51

There are 10 new HA unit apps added since Tuesday for the Nov. 6 and Nov. 13 public hearing dates. New grand totals: SWEPI/Encana - 151(17 added) and Chesapeake/Goodrich - 80 (7 added). Petrohawk (KCS) have 2 (1 in Dixie and I in Red River/Bull Bayou). Questar (3) in Thorn Lake. Will Drill (3) in Belle Bower. Questar (3) in Thorn Lake. The Chesapeake/Goodrich units are in Bethany-Longstreet and Red Chute. This is the first HA unit app in Red Chute (Bossier). That's 33 new unit apps added since Tuesday.

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Permalink Reply by getoverit on October 3, 2008 at 14:35

Skip,
We own 78 acres in Red River/Bull Bayou. Do you know if any of the new applications are for sec 26 or 27 township 12 range 11? Thanks!

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 15:07

getoverit, the new HA unit apps in Red River/Bull Bayou are as follows:

Pinnacle Operating - S23-26 - 12N - 13W
Petrohawk - S25 - 13N - 11W
SWEPI - S14,22,23 - 13N - 12W

Though none of these applications are in your section/township/range, they are an affirmation of the value of the field/area. And, unlike some other core areas, a good competitive situation exists with the players. I track activity daily and would feel most fortunate to have 78 acres in your location. Patience will be rewarded. Best of Luck. Skip

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Permalink Reply by getoverit on October 3, 2008 at 15:19

Thanks! I appreciate the info. We leased the 38 acres in sec 26 to PK back in May. The 40 acres in sec 27 were already under lease, but that lease is supposed to expire at the end of Dec. We're desperately hoping that they don't start drilling in sec 27 before the lease expires. =) This is good news, though...I think! Again, thanks!

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 15:29

getoverit, my suggestion is to check for permits in Sec. 27 on SonRis. If there is no existing production to hold that section and there is no well permit approved by this date, chances are good, under the prevailing conditions, that there is not sufficient time to spud a well there prior to the extinction of the term of the lease you mention. Be watchful and stay on top of activity. You are in a good position. Good Luck. Skip

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Permalink Reply by Skip Peel - Mineral Consultant on October 3, 2008 at 14:51

msfva, I'm still trying to process this significant increase in unit applications. It is good news for the expansion of the southern and northern edges of the Play. And a good reminder for all the members that there are many major players involved that do not seek the kind of media attention that Chesapeake generates. Nationwide, savvy investors track SWEPI/Encana. And El Paso, Devon, XTO and Anadarko to name a few. There are 40 + E&P companies involved in the Haynesville Shale Play and that does not include some additional ones in East Texas. Nor some that have significant leasehold within the Play but are not visibly active at this time. Anadarko is a good example. It is early in the development of this play. As time goes by, there is more reliable information becoming available. The learning curve for our members is in its early stages. Stay tuned, it is never boring. And the lessons learned here will earn many families significant legacy dollars for several generations to come. As to your specific question about big O&G being better - I am not sufficiently experienced to answer that question. But I feel confident that there are certain members who are more than capable to do so. If they do not post here, ask them on their personal pages. I think you probably know who they are.

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Permalink Reply by VSC DeSoto South on October 4, 2008 at 2:30

In this case, where the coil tubing is not cooperating and they shut in the well, what happens to the landowner and the lease if they had one? Does this mean they are shut down for the remaining lease durattion? Is SWEPI obligated to come back and try to drill again? Are they held in production, because SWEPI did majke and effort? SHut in payment and duration clause woudl address this, I guess, but I don't want a shut payment, I want them drilling and producing.

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Permalink Reply by Les Bamburg on October 4, 2008 at 3:38

Msfva, I think there are many criteria for addressing which is better. As far as technical competency, companies such as Chesapeake, EnCana, XTO, Devon, EOG & Petrohawk are best having the most experience and information. Regarding financial stability & strength, clearly the major O&G's such as Shell (SWEPI), BP, ExxonMobil & ConocoPhillips have the most to offer. Most all the operators should do a good job of taking care of the land due to the risk of environmental fines.

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