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Permalink Reply by Jack Blake on April 29, 2011 at 12:11

I need some ballpark idea of a fair one well deal and kep clauses.

I know they indemnify me,  I really like a set price to avoid counting on meters.  jack Blake ain't no attorney and his attorney costs about $5.00 per minute and Jack has him review Jack's deals.  But Jack does all of his own negotiation based of what he researches and the gohaynesville shale members say.  If Jack gets good advice on this deal he will donate 5% of his proceeds from this one well deal to go haynesville shale.  The donation will not show as coming from Jack Blake because Jack Blake's name is really not Jack Blake. 

Please give me some good advice now, (besides consulting an attorney). 

 

Question: How many barrels of water for a typical 13 stage frac job (this well will be 13 stages).

What's the going rate with the drought?

Jack Blake

 

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Permalink Reply by dbob on April 29, 2011 at 13:37

jack, depends on the company, but anywhere from 150,000 bbl (42 gallon bbls) to 200,000+ bbl is possible.  going rate depends on location.  Close to toledo bend is generally lower.  If you are more than 5+ miles from something that is a nice source of water, I would expect goes to slowly go up.  

 

Figuring on roughly 10000 bbl in your pond, and about a 180,000 bbl frac, $12,000 flat rate seems roughly fair, + any surface damages.  If you like your fish, I'd ask that they leave 4000 bbl in the pond at all times and refill when complete.  Not sure what it would cost them to truck it in and rent them, but 40 frac tracks would store 20,000 bbls. You might want to look at that cost and compare it to how they are valuing your pond.

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Permalink Reply by FXEF on April 29, 2011 at 13:42

Jack,

 

You're probably looking at 140,000 to 150,000 bbls of water for a 13 stage fracture.

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Permalink Reply by dbob on April 29, 2011 at 14:06

Jack,

 

Since its a super pad, you might want to try to become THE preferred source of water by offering a favorable rate and letting them lock in say three fracs - maybe get a $30,000 payday? 

 

Also, since they'll be pumping into your pond at a high rate, make sure there is a clause regarding repairs to your dam in the event of failure due to erosion during the filling process.  I could see a possibility of overfilling the pond overnight and eroding big parts of the dam.

 

 

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Permalink Reply by Jack Blake on April 29, 2011 at 14:54

I plan to be the prefered source, for the well that is waiting on frac and the probable next three wells on this pad and part of my good faith effort is to do a one well deal asap for them. 

 I mean they have the pipe all layed out and all and about a dozen frac tanks already on the superpad (IJack thinks they'll be bringing in more frac tanks to the super pad)..

Expalin this 30 k payday please Is it they give me 30k to do 3 wells or 40k for 4 wells??.  Jack blake likes that!!

They'll probably do 4 wells on this pad as it is in the corner of a section.

 

The 40 k all payable today or 10k per frac paid at time of frac?

Thanks for the great advice on clauses.

Power to the landowners howled Jack Blake!!!!

Jack is so far giving Gohaynesvilleshale 2% of the proceeds of this deal if it goes through based on the info you have given Jack Blake so far.

Are there any otyher pond clauses??

Jack Blake is gonna be starting a contract addendum tonight.

Jack will also write down the 6-8 key clauses:

they indemnify Jack Blake

they fix possible dam/levee repair and fill pond to max capacity after frac

I want to be the preferred source for future wells

they pay damages to any fences etc. 

 

 

Help gohaynesville shale help the landowners.  Jack needs a little more input from the experts.

Shalegeo, any more input?

How about you Skip Peel Independent landman, please advise jack blake?

What do you think Les b?

Chime in on what Jack should do and help please............... 

A little more input from these and other experts tonight will bring Jack's donation to go haynesville shale up to 5% of his initial proceeds from this deal if it happens. 

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Permalink Reply by dbob on April 29, 2011 at 15:03

Jack

 

Say 12k per frac if paid one at a time, and a little discount down to 10k per frac if they pay in advance.  Exact numbers you'll need to work out for yourself.  it may be 20k upfront for the first 2 fracs, then 10k each for the next two paid at the time of fracing.  Or maybe you and they want a water well there and its 10k + water well for the first frac, and 10k for each additional frac.  

 

Dbob

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Permalink Reply by Jack Blake on April 29, 2011 at 15:17

Jack likes that deal :  10k + water well for the first frac, and 10k for each additional frac.  

thanks dbob

 

Please provide more great advice cried Jack Blake!!!!!!

 

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Permalink Reply by dbob on April 29, 2011 at 15:33

Jack,

 

The water well example was something that might be possible, particularly if they don't have a full water source yet.  if they have the water, but just need a spot to store it, the well may be a non-starter.  

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Permalink Reply by Jack Blake on April 29, 2011 at 15:42

I still like it. They can use the pond to store for first frac, but have me a well filling the pond within 6 mos with clauses and amounts of penalties to keep them on a time schedule................

Yeah I hope Jack is crying WAHHHOOOOOOOOOOOOOOOOOOOOOOO again soon.  It seems like it just keeps happening.....................

We must all exploit our gas and not let the oil companies exploit us..............

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Permalink Reply by Jack Blake on April 29, 2011 at 16:47

Keith at GHS gets 3% of Jack Blakes initial payment on this deal if it materializes.  Please give Jack some more key tips to bring Keith's cut up to 5%.

Skip and Les,  please give jack some input.

Thanks

Jack Blake is going to bed but will check GHS when he wakes up early Saturday am.

goodnight:)

Permalink Reply by Greedy Landowner on April 29, 2011 at 11:54

Sounds like you have them over a barrel!!! Sorry I couldn't help it

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Permalink Reply by Stevew on April 29, 2011 at 20:25

Hi Jack,

 

Best of luck with this lease!  That's a great thing to do - donate a percentage back to GHS in appreciation for the advice you have gotten. I admit that I should give a lot more than I do.  It's great that GHS is here for us.

 

It actually looks like the guys before me have given real good advice. Even if someone misses the question these guys have covered most of the important things.

 

I would also keep in mind the environmental problems that COULD come up if an accident causes a big problem. When I negotiated my lease I did not have a clue that you could write in clauses to protect the water and land. My cousin did and he says his lease gives him a lot more protection in the event of an accident.  However, at the time he negotiated that it was at the peak of the Haynesville Rush. It may be harder to add these protective clauses in nowadays. Maybe someone here on GHS has an idea about this?

 

I think you are smart to pay a lawyer (even at $5 a min) to look it over. You can be the negotiator but pass it by a lawyer who can see if you are missing something important.

 

Logger,  howling with you from the Pacific Northwest!

 

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