Activity in Lincoln Parish

I know this should be in the Lincoln Parish group, but everyone has lost interest there.
Indigo is drilling quite a few wells in the West Simsboro and Ruston fields, and now they are drilling the wells, leaving them uncompleted, and drilling more. Apparently they have contracted with two drilling companies to drill a certain numer of wells. The word is, they are waiting to complete them when NG prices increase. That makes sense to me. My question is, what effect does this have on the leases and the mineral owner?

Views: 94

▶ Reply to This

Replies to This Discussion

Permalink Reply by BirdDawg, plain ole' idiot on February 21, 2009 at 12:09
Thanks KB

Oil & Gas ProPermalink Reply by The_Baron on February 23, 2009 at 8:12
It is normal to have some delay in completion operations. Normally a shut in clause would only apply to a well capable of producing, but as Kb said, it will depend on your lease. The same goes for a lease held by operations. The wording can vary, but is normally vague. My standard lease form gives a extra term of 90 days of no activity if a well should be shut in or temporailly abondoned for the company to rework or conduct completion operations.
Permalink Reply by BirdDawg, plain ole' idiot on February 23, 2009 at 14:44
Gray,
Some of these wells are in sections HBP. Other sections have no production, and haven't for many years. I guess my main question is regarding the sections that are not HBP.

Oil & Gas ProPermalink Reply by The_Baron on February 24, 2009 at 5:47
If the leases are already HBP, the only valid argument would be that the lease is not being prudently developed. This would be hard to prove though.
Permalink Reply by BirdDawg, plain ole' idiot on February 23, 2009 at 14:41
Thanks Baron,
They are setting the long string on all of these wells, so they are obviously capable of producing. I need to check my lease. Thanks to you and KB.

Oil & Gas ProPermalink Reply by The_Baron on February 24, 2009 at 5:49
If they are spending the money on setting pipe, you are probally correct that they are fairly confident that the wells will produce.

Reminds me of the old saying though....Whats worse than a dry hole?, a bad well you set pipe on.
Permalink Reply by BirdDawg, plain ole' idiot on February 23, 2009 at 14:47
Baron,
I guess I kinda missed the first part of your post. These are not normal delays in completion operations. Until the drop in NG, they were generally completing the pipelines prior to TD of the well, and promptly fracing. They word from company men is that they have no intentions of completing until a price increase.
Thanks for your input.

Oil & Gas ProPermalink Reply by The_Baron on February 24, 2009 at 5:51
And that may be, the economics may not look so good right now, and if they are in no danger of losing a lease it might benefit to wait.

RSS

© 2026   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service