Replies to This Discussion

Oil & Gas ProPermalink Reply by Les Bamburg on May 29, 2009 at 9:50

Shelby, in Louisiana you get your name on the well if the surface location is on your property.

• ▶ Reply

Permalink Reply by shelby on May 29, 2009 at 10:14

Thanks LesB,
But as far as pay out goes, you are going to get paid on your percentage of unit ownership in net mineral acres regardless; Right?
Also, if this is the case, I guess you will get paid on all wells as soon as they meet expenses in any particular unit regardless of location in the unit?
So other than your name on the well, I guess it does not matter much, in reference to how and when you get paid on your production percentage?
Thanks for your insight.
Shelby

• ▶ Reply

Permalink Reply by shelby on May 29, 2009 at 10:26

Thanks KB,
We do have damages clause in our lease; I wish we had thought about a drill site override.
Shelby

• ▶ Reply

Permalink Reply by shelby on May 29, 2009 at 10:38

KB,
Regarding drilling pad locations; are section lines and corners the most obvious places to drill first?
Shelby

• ▶ Reply

Permalink Reply by shelby on May 29, 2009 at 11:13

KB,
Seems like a pretty logical approach, particularlly if they are attempting to define the boundaries of the play in a grid approach. Regardless, I am just thrilled that they have the resources to keep pushing ahead.
Shelby

• ▶ Reply

landownerPermalink Reply by msfva on May 29, 2009 at 11:03

KB,
What is a "drill site override?" Sorry for my stupidity.

• ▶ Reply

Oil & Gas ProPermalink Reply by Les Bamburg on May 29, 2009 at 13:00

Shelby, as KB stated there is no real extra money associated with the well having a surface location on your property for Louisiana units.

Wells are generally being located close to section lines to allow for maximum lateral length. In Louisiana this would be 4620 ft. It also allows for easier tie-in to gathering systems and multiple well drilling pads.

• ▶ Reply

Permalink Reply by 221caribbean on May 30, 2009 at 1:18

Les, does this mean they can drill laterally from the corners of the section into adjacent sections?

• ▶ Reply

Oil & Gas ProPermalink Reply by Les Bamburg on May 30, 2009 at 4:20

221carib, several wells have been permitted (and drilled) that are located near the north or south section line with the lateral located in the adjacent section. Normally these are being drilled north or south due to the typical N-S (or S-N) horizontal well orientation in the Haynesville Shale. If you are interested I could post some examples.

In some cases the surface owner has land in both sections so has a vested interest in being cooperative with the well operator.

• ▶ Reply