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Permalink Reply by Snake Stewart on July 18, 2008 at 17:51

They may be waiting for pipeline installation.I am not sure if frac is handled by now or not.They can't just drill a non producing well and hold your lease.

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Permalink Reply by easttxhaynesville on July 18, 2008 at 18:04

thanks for the reply snake. yea they have not done a frac yet either. actually my lease expired while they were drilling. do i have a chance of releasing it for better pay and royalties or by them drilling does that negate my releasing ability?

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Permalink Reply by Jenni on July 18, 2008 at 18:13

It takes some time to prepare for a completion, however most companies would start the completion as soon as the drilling rig was moved off. As the previous poster stated, they might be waiting on pipeline access. It is better for the life of the well not to go ahead with the completion, frac the well, flow it back then shut it in. Better to delay the completion until you know you can sell gas ASAP.
First thing that you should notice will be that the small valve sticking up will be replaced with a larger multi-valve "frac stack" . This allows pressure control and ports for pumping and flowing the well during completion. If the well will be frac'ed(??) you will see lots of rectangular tanks hauled in and filled with water. At some point the frac service company (could be one of many) will move in a large rectangular bin that will be filled with the sand or proppant. Depending on the completion, you will see various other equipment in and out of location (Wireline, pump trucks, Coiled tubing, etc...).
When the trucks arrive to frac the well, you will know it. Depending on how close you are to the well, it will be very loud, the location will be filled to capacity with trucks and probably will last at the very least most of the day, once again depending on the completion. They could stay rigged up and frac multiple zones over the course of several days.

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Permalink Reply by easttxhaynesville on July 18, 2008 at 18:20

hey thanks jenni. my property is actually in marhsall texas and im about 45 miles from there. i went down to the rig one time right before they completed the drilling. the superintendent told me they hit haynesville and there were like 4 producing zones, but couldnt tell potentials until the frac was done. i assume the frac crew is running behind. my lease expired on july 6 while the drilling was just underway. will there be a chance i could sign another lease? noone has contacted me about the lease expiring or anything. didnt know if i could actually get a little better than 150 bucks per acre....lol?

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Permalink Reply by Jenni on July 18, 2008 at 18:29

I can't help you with the land and lease side of things. I just know the completion end. I am with the rest of the board as far as learning about mineral leasing. I would assume that you did a 3+2 lease, basically saying that you have to give the company an additional two years and they will pay you another round of bonus money. If you have a straight 3 yr lease, then I am not sure how it was written. If I can ask, who is the operator?

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Permalink Reply by easttxhaynesville on July 18, 2008 at 18:35

yea its just a straight 3 year lease. it states the well must be producing in paying quantities. no offense but id rather not say on this public forum who the operator is until i get some counsel. but thanks so much for your answers. doyou own minerals here in tx?

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Permalink Reply by Jenni on July 18, 2008 at 18:38

No problem, I understand. I don't have any land or minerals in TX, just used to do a lot of work in the Marshall area.

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Permalink Reply by easttxhaynesville on July 18, 2008 at 18:44

i see well you have been very very helpful. i can tell you its not a local marshall co. that has the rights. i did lease to a local but they in turn sold my lease to a company not from around here

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Permalink Reply by Ladyoaks on July 18, 2008 at 21:14

You need to talk to a lawyer on your lease, if you have not already done so. The o&gs may just try and ignore the expired lease and have you accept royalties under the pre-existing lease...get counsel from lawyers...it'll be worth the few hundred or thousand bucks.

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Permalink Reply by easttxhaynesville on July 19, 2008 at 3:02

i think your right ladyoak. ill be meeting with one on monday. i just hope the drilling process did not extend the lease to make it locked in by production. thanks so much for your response

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Permalink Reply by Cathaus on July 19, 2008 at 1:50

I would say to just sit tight and wait for your first royalty payment. I bet then you will forget about another lease!

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