Replies to This Discussion

Permalink Reply by Checkmateking on February 25, 2010 at 13:45

Exco holds the exclusive rights down to the original completion, held by production, Petrohawk holds those you leased to them (whatever depth clause) pretty simple.

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Permalink Reply by Frank Martin on February 25, 2010 at 14:00

So, it's mostly about depth and not surface?

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Permalink Reply by Bobi Carr ("parker") on February 25, 2010 at 15:49

Frank,

Are you asking whether or not they can use the same location site that EXCO used to drill the shallow well?

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Permalink Reply by Frank Martin on February 26, 2010 at 10:21

Parker -- I guess I'm asking if Exco can use my current lease (the one that goes to 6,500 feet or so) to drill down (on the same spot? or next to it? in the same unit?) down to Haynesville depths?

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Permalink Reply by Spring Branch,mineral owner on February 26, 2010 at 10:53

FM....short answer...NO.

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Permalink Reply by Frank Martin on February 26, 2010 at 11:35

Thanks, Spring! Much thanks!

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Permalink Reply by P.G. on February 27, 2010 at 13:53

Hmmm?
Now I'm confused.
So if they re-enter the same well and extend it on down to the HS, they pay royalties on the old lease terms but if they drill a totally new well down below the old well depth to the HS., they have to do so on the new lease's terms and not the old one's terms?

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Permalink Reply by Two Dogs, Pirate on February 27, 2010 at 15:05

Hey PG you are confusing me. If one sees confusion, others may also. The first lease has to have a vertical Pugh or something that gave, deeper depths to the second Lessee. Second lessee has no rigths to first lessee's depths. If one would put a HA borehole down some old hole, you probably would have problems. May be hard to get a permit on that one.

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Permalink Reply by Spring Branch,mineral owner on February 27, 2010 at 21:44

Electro...I assumed that FM was asking if Exco could drill a well to the Haynesville without Petrohawk's authority or permission. That seemed to be the question. Of course Petrohawk could authorize Exco to drill and Operate a deep well under the terms of the Petrohawk deep rights lease, but not under the terms of the Exco shallow rights lease. Exco would just be acting in that case as a proxy for Petrohawk. Once again, I don't think that was what FM meant when he asked the question. I don't think it would be possible or practical to use the old bore hole for a Haynesville horizontal well. Old, skinny pipe would never hold up to the pressures of the Haynesville, nor would it allow for a mid-string to be run.

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Permalink Reply by P.G. on February 27, 2010 at 18:20

Aren't leases generally for what ever depth they produce + a hundred feet if there's a depth clause and a specific depth isn't defined?
What would keep the driller from saying that first 6500 feet was just a temporary stop off on the way to 11000'?

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Permalink Reply by Spring Branch,mineral owner on February 27, 2010 at 21:51

Beginning to get silly.

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Permalink Reply by Checkmateking on February 28, 2010 at 2:13

Boy don't yall love to complicate things, it was a simple question with a simple answer, lets leave it at that.

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