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Permalink Reply by Skip Peel - Mineral Consultant on May 27, 2022 at 13:21

Jeff, here is the status of Section 7 leases from Jay. Exco will have to spud a well prior to lease expirations or pay to extend the lease terms for an additional two years if their leases contain that option clause.

"Can you tell JeffN Paris that Section 7/15N/15W is primary term Exco with leases starting to roll this year if they did not have the 2 year kicker. Section 6 is HBP by CHK so no issues there."

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Permalink Reply by JeffNParis on May 27, 2022 at 14:09

Thanks Skip. Any idea how active Exco is right now?

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Permalink Reply by Skip Peel - Mineral Consultant on May 27, 2022 at 14:19

Check my Main Page discussion for the rig report to see how many rigs Exco is running and where.  Since Exco has not as yet applied for a unit well field order, it could take some months before they could spud a well.  I'm not even sure Exco has formed a HA unit for that section.

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Permalink Reply by ShaleGeo on May 29, 2022 at 20:12

Section 7 of 15N 15W may have a delayed Haynesville development for a number of reasons.  The original 640 acre unit holding well was CV and not HA.  It was a vertical well and went off production in 2018.  Exco, as holder of the HA rights then began trying to re lease the section and is now running of of time on the new leases.  I believe at least one of the mineral owners in the section also has some title issues.  Combine all of this with the fact that CHK controls the section to the north, Exco is in a bind here.  May be an opportunity for another operator to help out if Exco can not get to it in time.  Just my interpretation of the situation.  

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