Replies to This Discussion

Permalink Reply by P.G. on February 28, 2010 at 5:37

My question is....given that Exco has a lease with us still (it's producing), can they set up a well on the same spot or so without having to sign a new lease with us?

That's a simple question?

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Permalink Reply by Checkmateking on February 28, 2010 at 6:39

Yes they can, but they can't drill past the depth held by the original lease and completion. That is Petrohawks right.

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Permalink Reply by P.G. on February 28, 2010 at 9:21

Well the thought I was having was what determines the depth held in the original lease if no particular depth limit was mentioned other than 100 ft below the original producing well. Granted, the original well, in this case in this thread, had been producing at 6500 ft but at what point would 6500ft become the bottom and couldn't be extended later?
My lease has a depth clause but I don't think it mentions any particular depth they must not go past. Just something like what ever they drill to plus 100 ft.
I never gave a thought if they wanted to come back later and punch the same well on down.
I am hoping they let my lease expire so I can do it right next time. There was no Go Haynesville Shale forum before they come to my house...
They took advantage of my stupidity just before the news about the shale leaked out! I never realized just how dumb I was until I started reading all the input from you knowledgeable folks. So I'm not trying to ask dumb questions, I'm just trying to understand this stuff.

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Permalink Reply by Two Dogs, Pirate on February 28, 2010 at 9:48

Petrohawk wouldn't have taken a OGML on something that wasn't open. There are all different kinds of cutoffs that can be in a lease.

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Permalink Reply by Skip Peel - Mineral Consultant on February 28, 2010 at 11:28

P.G. The depth clause becomes effective at the end of the initial term, usually three years. There is no opportunity for the operator to extend their rights to deeper depths. The extensions we discuss here on GHS are "lease" term extensions. Not "depth" extensions. A basic vertical Pugh clause makes the lease effective from the surface of the earth to the deepest depth produced plus 100'. On the expiration of the initial term, all depths below that description are "released" and an additional lease may be entered into for the production of the "deep rights".

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Permalink Reply by P.G. on February 28, 2010 at 15:01

Thanks!

Permalink Reply by Henry on March 2, 2010 at 6:14

Skip,
Here's a question... When the primary term expires, does the mineral owner need to get the driller to explicitly release the deeper, undrilled depths (i.e., file something in the courthouse)? Or is this something that will be figured out when the next company comes in years later to drill deeper?

Permalink Reply by Spring Branch,mineral owner on February 28, 2010 at 17:27

In an effort to learn as much as I can from an expert in the completion process, I would be very interested in reviewing the Section, Township and Range where a Hosston or vertical Cotton Valley (or Shallower) well has been recompleted into a Horizontal Haynesville without the necessity of replacing the production string such as you are referring to, Electro. Just Section, Township and Range, I'll take it from there.

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Permalink Reply by Spring Branch,mineral owner on March 1, 2010 at 1:03

I know on Williams 22 in 15/15, Chesapeake at first completed the well as a vertical Haynesville with 4 1/2 " to TD, and then removed the 4 1/2 " and drilled it as a horizontal Haynesville with 5 1/2 ". It was Chesapeake's third Horizontal Haynesville in the play behind SRLT 29 and Feist 28.

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Permalink Reply by Spring Branch,mineral owner on March 2, 2010 at 5:29

Didn't ignore it Electro, just simply didn't see it.

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Permalink Reply by Skip Peel - Mineral Consultant on March 2, 2010 at 6:19

Henry, the lessor should request that the lessee file a release with the appropriate parish clerk of court just to make sure that it is obvious that the lessor is in a position to entertain lease offers for their deep rights. An experienced landman should not require a release to know that the deep rights are open from a review of the existing lease.

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