We have existing/active wells in DeSoto with Chesapeake. Apparently Chesapeake wants to negotiate new leases for the Hosston and Cotton Valley zones. We inherited these wells years ago and fortunately there was a "pugh clause" in the original lease which forces them to do a new lease for these zones. They did an exporatory drill 2 years ago so I guess theres something there.Aand they must be getting better at drilling for the "tight natgas" now.

Anyone else run into this?

Any idea what the current lease and market rates are for these zones are? 

Will they use the existing wells or drill new holes?

Do they need to get new permits to use existing wells for these zones? 

I don't see any of these fields/zones in SONRIS. Any idea how to track?

Thanks in advance!

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We have mineral interests in 13N 15W Desoto parish and when Indigo was the operator they were drilling horizontal CV wells and had permitted more wells then COVID hit and the permits expired. SWN then became the operator and there was no interest in Cotton Valley wells at all. We have a couple of producing CV horizontal wells and they have been good wells. Hoping there is renewed interest in the CV after the merger!

Thanks, Ray.  I looked at those CV H wells over the weekend after Scott started this discussion.  The last Indigo horizontal CV well was drilled in May 2019.  In early 2017 Indigo had acquired Haynesville Shale acreage from Chesapeake.  That began a transition from development focused on the CV to a focus on Haynesville/Bossier shale development.  When Indigo decided to divest their NW LA interests they sold their deep rights that included the HA and BO to Chesapeake and their CV and Hosston shallower depth rights to Diversified Production LLC in early 2021.  Diversified operates the remaining HOSS and CV wells but has not drilled any new wells.  And yes, many of those CV wells were quite good producers.

Thanks for the reply Skip! If memory serves me correctly they didn’t sell their deep rights in sec. 28&33 and I think in a long ago post you made light of that observation! We have mineral rights in sec. 28.

Since SWN operates the CV, HOSS and HA wells in those sections, you are correct that Indigo didn't sell those shallow rights to Diversified Production.  That raises the question, why?

My suspicion is that they knew the inherent value there and didn’t want to sell at bargain basement prices!

Very good, spoken like a homey.  LOL!


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