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Permalink Reply by bigball N1/N2 on August 22, 2010 at 2:12

so it was a breach of contract? anyone know what the problem was?

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Permalink Reply by Les Bamburg on August 22, 2010 at 2:57

BB, since there is no specific information we really do not know what the case involves.

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Permalink Reply by Skip Peel - Mineral Consultant on August 22, 2010 at 2:21

The suit is recent and I have heard no scuttlebutt on the specific cause of action. I suspect that the Messengers may be tired of being HBP'ed by a vertical well with limited production. Then again it could be an attempt to enforce a depth clause as the Messenger well is said to be producing from perforations shallower than the Haynesville Shale, CV and BO particularly. The Janet Messenger well was the first far south HA well drilled and generated a lot of discussion as it was quite productive at the time for a vertical which boded well for a very productive horizontal. Which has yet to be drilled.

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Permalink Reply by Les Bamburg on August 22, 2010 at 2:58

Skip, information from EnCana indicates the well is producing from both the Haynesville Shale and Bossier Shale.

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Permalink Reply by Henry on August 22, 2010 at 3:05

Maybe someone who has access to pacer could print out the pleading?

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Permalink Reply by Skip Peel - Mineral Consultant on August 22, 2010 at 3:50

On April 12, 2010, Encana filed of record a "Notice Of Extension To Oil & Gas Leases". Three Delta Lands Exploration leases were covered in the notice, one being the Janette Lewis Messenger lease which was extended in force until 5/13/2012. A quick review of that lease shows that clause 22. of the Exhibit page grants the lessee the right at its option to extend the Primary Term for an additional 2 years from the expiration of the primary term by tendering lessor the sum of Fifty and No/100 Dollars per net mineral acre. In effect turning a five year lease primary term into a seven year term. The lease form is quite comprehensive in the lessees favor and the Exhibit page is short. The royalty is 3/16th.

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Permalink Reply by BirdDawg, plain ole' idiot on August 22, 2010 at 6:31

Ouch!

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