Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 23, 2022 at 15:44

Doctor Joe, I'm unsure of exactly what you are asking.  Are you considering a sale of your mineral rights?  Or, looking for terms of recent leases in 9N-13W?  In either case, a specific section or sections would be helpful.

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Permalink Reply by Skip Peel - Mineral Consultant on July 24, 2022 at 4:17

I agree with ShaleGeo that 9N-14,13 & 12W are the far south end of the currently defined Haynesville/Bossier fairway.  I do think that all of 9N appears to be economic based on the newest well designs.  Some of those newer wells actually extend further south into 8N.  I maintain a fairway spreadsheet for all the townships with HA development so I am aware of some quite good wells from the perspective of initial production data.  Maybe ShaleGeo will look at the ones on this list and provide an opinion.  I would be particularly interested in the decline profiles.

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

252105

JUR RA SUB;OLYMPIA MIN 36-1 HC

001

S9226

1163

43

20

025

09N

12W

01/01/2022

17085225550000

02/12/2021

10

21830

13052

COMPLETED 1/15/21; GAS; 33118 MCFD; 30/64 CHOKE; 8333# FP; & CP; PERF 13165-21627'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

252635

HA RA SUN;OLYMPIA MIN 5-8-17HC

002-ALT

C441

1163

43

20

032

09N

12W

11/01/2021

17085225810000

09/30/2021

10

24200

12940

COMPLETED 9/4/21; GAS; 26152 MCFD; 16/64 CHOKE; 9127# CP; PERFS 12997-24180'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

252634

HA RA SUN;OLYMPIA MIN 5-8-17HC

001-ALT

C441

1163

43

20

032

09N

12W

11/01/2021

17085225800000

09/30/2021

10

24260

12788

COMPLETED 9/4/21; GAS; 29721 MCFD; 16/64 CHOKE; 8539# CP; PERFS 13060-24230'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

251502

HA RA SUO;DESALVO 6-7 HC

001-ALT

C441

1163

43

20

031

09N

12W

11/01/2021

17085225220000

10/15/2019

10

22908

COMPLETED 8/30/19; GAS; 22450 MCFD; 16/64 CHOKE; 8786# CP & FP; PERF 12841-22898

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

251503

HA RA SUO;DESALVO 6-7 HC

002-ALT

C441

1163

43

20

031

09N

12W

11/01/2021

17085225230000

10/15/2019

10

22026

COMPLETED 8/30/19; GAS; 21254 MCFD; 16/64 CHOKE; 8885# FP & CP; PERF 12759-22016'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

251030

HA RA SUJJ;OLYMPIA MIN 33-28HC

001

C441

1163

43

20

033

09N

12W

11/01/2021

17085225000000

12/26/2018

10

20807

COMPLETED 11/3/18; GAS; 20000 MCFD; 16/64 CHOKE; 8726# CP; PERF 12718-20797'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

251571

JUR RA SUK;OLYMPIA MIN 35-02HC

002-ALT

S9226

1163

43

20

035

09N

12W

01/01/2022

17085225310000

12/17/2020

10

22547

13035

COMPLETED 11/16/20; GAS; 50214 MCFD; 38/64 CHOKE; 8298# CP & FP; PERF 12978-22483'

 

SERIAL

WELL NAME

WELL NUM

ORG ID

FIELD

PARISH

PROD TYPE

SEC

TWN

RGE

EFFECTIVE DATE

API NUM

251570

JUR RA SUK;OLYMPIA MIN 35-02HC

001-ALT

S9226

1163

43

20

035

09N

12W

01/01/2022

17085225300000

12/17/2020

10

21902

12981

COMPLETED 11/16/20; GAS; 50355 MCFD; 40/64 CHOKE; 7756# CP & FP; PERF 12942-21851'

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Permalink Reply by Skip Peel - Mineral Consultant on July 24, 2022 at 12:24

I'll look forward to your analysis.  The well cost for each of these wells can be viewed by clicking on the serial number in blue and then on, "Horizontal" in the category column.

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Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2022 at 2:47

Thanks.  The average for the subject wells is $12.9M.  D&C costs vary over time and are higher currently with the level of development activity.  I know that some of the wells avoid any deduct for H2S and CO2 by commingling the production from the Haynesville wells with that of the Bossier wells.  They do appear to be good wells and there are a good many field orders that approve additional wells for SWN, Chesapeake and GEPH II in all three of those townships.

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Permalink Reply by Doctor Joe on July 25, 2022 at 3:03

Thanks to everyone for their input. There comes a time when not only does the decision to hold or sell include not only the probabilities and timing of the drilling of another well but one's age as well. The future may look bright for additional wells and income, but it won't be of any value to you if you are no longer around to enjoy it.   

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Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2022 at 3:08

Joe, when there are public record indications of the intent to drill more wells in the future, that's when mineral companies get aggressive to acquire mineral rights.  Those companies are investing for the long term but do prioritizes acquisitions that are expected to get drilled sooner rather than later.  Current offers are the highest they have been in the history of the Haynesville Shale play.

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Permalink Reply by Steve P on July 26, 2022 at 9:35

Based on my own experience, some of the mineral buyers seem to have inside information about future drilling plans rather than waiting on "public information".  Perhaps I'm overly suspicious, but more than once I've had offers to buy royalties/minerals a few months before I get my notification letter of a petition to Conservation for the approval of additional CULs.

Just saying...

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Permalink Reply by Skip Peel - Mineral Consultant on July 26, 2022 at 9:55

I know of a few instances where buyers have "inside" information but they are rare.  And in every case of which I am aware of the specifics, the buyer has a significant number of acres already leased to the operator and the relationship is not mineral buyer and operator, it is major lessor and operator.  The buyer may also be a Working Interest under the wells of their operator in which case they are privy to a good bit of proprietary plans. 

It is also helpful to think of the majority of buyers as middle men.  They are funded by one or more investment clients that provide an AOI and the buy terms.  It is sometimes the investors that have a relationship with one or more operators.  In all those cases, the investor already owns enough acreage to have a relationship with their operators.

Just saying..... ;-)

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Permalink Reply by Rock Man on July 26, 2022 at 14:04

Personally, I think that if one keeps up with certain companies' public presentations as well as patterns and trends in permitting, drilling and completion activity, it isn't that difficult for one to "predict" when drilling in some areas may occur. 

Companies hold their drilling schedules very tite - but clean up leasing and courthouse filings are a good clue that new drilling is coming to certain areas.

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Permalink Reply by Rock Man on July 25, 2022 at 6:54

Your comments are one of the reasons why each area of minerals is unique. One's age, family, grandkids all come into play. Health, desires to travel or do things with extra money, etc. also big factors.

I had a set of Eagle Ford wells drilled in 2011 that had played out to almost nothing - but I knew that there was more room for more laterals on the unit. That happened last year, and I received as much $$$ in 8 months as I had the previous 10 years.

Bigger fracs and more aggressive stimulations accounted for this type of return on the new wells.

Knowing what is "left to drill" as to any minerals is as important as anything when considering offers. Infill potential, undrilled lateral locations at primary target, shallower targets, etc.

All things to know - because the savvy mineral buyers have their own geologists and engineers looking at the same thing.

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