I tried to find this topic in a previous thread before posting but was unsuccessful. I am sure it varies company to company but what is the most unleased acreage anyone has heard of in a section where a haynesville horizontal is being drilled?
Early in the Play there was a lot of sub-par land work that resulted in units and wells in sections that had significant acres unleased. IMO, there are very few experienced shale players that would commit development capital to a section/unit with 120 or 100 acres not under lease. There is no such thing as a maximum number of unleased mineral acres that an operator will accept in a drilling unit. It's a case by case scenario. And differs greatly by operator on variables that we will never know and few would understand. IMO, Henry and r.w.'s examples above represent anomalies and not standards.
Is the operator providing you with a monthly accounting of your share of well costs and expenses so you will be able to know when they have recouped their costs? Are you using an independent auditor to make sure costs are honestly documented?
when the o&g did our extension they omitted an entire section from renewal claiming it to be outside of thire area of immidiate interest. We got notices a few months later and it is in production now. My intention is to lease now but PK is sitting on thier hands. I couldn't even get a return phone call until I hired an attorney to call for me. Any thoughts on the value of 100 acres in sec17 15n 11w? I have just recently requested monthly accounting in case we end up umo. The well shouldn't be to many months from pay off.
r.w. I suggest you go to the SONRIS Help Center Group Page (use the link below), download two blank township grids (one for 15N - 11W and one for 15N - 12W because your Section 17 is in the westerly third of 15N - 11W), then get me or Les B. to provide you with the sections that are under HA unit order or application. Use the tutorial on searching SONRIS Lite for "wells by section - township - range. Shade in the sections under unit orders and write in the wells to HA depths in each section. Update your tracking grids at least weekly. Fridays are good as weekly state reports are updated on Thursday. Now remember, You Do Not Have To Lease To Petrohawk! Lease to whomever offers the best lease terms. I hope your attorney is an experienced O&G attorney. If not, get one. 100 acres of HS mineral rights is worth hiring the best. They are expensive but charge by the hour. Never give an attorney a percentage cut for negotiating a lease. Good Luck.
100 acres in 15N-11W is as good as it gets! Don't give it away. I know of a recent offer in excess of $10k for a tract of that size. You should get more. You are in the best area of Haynesville Shale.
The well drilled in august and started producing gas in september. It is an experimental well with a 14 choke on it so its putting out around 10,000.
Any estimates on how long a well like that would take to pay off and put us in the 100% royalty catagory?
I think of it this way.... At today's gas prices (with deductions, you might get about $4.00 per mcfe), it will take about 2 Bcfe of production of production to pay off an $8M well. So it will be a while.
If you are thinking of leasing, just remember this: There are very good wells in your section. Here is a sample. There are more.
PS. You will not get "100% royalty." As an unleased mineral owner, you get no royalty, by definition. Royalty is only for those who are leased. You will receive your share of production, minus the cost of the well (the $8M or so) and operating costs.
Good luck, whether you stay unleased or sign. Either way, I hope you do very well.
we have another 100 in section 7-15-11 that is leased so I'm familiar with the other wells in the area. I appreciate the info concerning the ammount of output for pay off. We were all leased up when the lease bonus frenzy hit and it was frustrating to watch it pass. For us this probably worked out better because we felt like 250 per acre was great 4 years ago. We would have never waited for the 8 to 10 grand mark to come around. I can remember thinking how crazy it was that people were turning down 6000.00 per acre. We have other family property in other states that ranges from as little as $25.00 per acre to $200.00 in lease bonus.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More